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Financial Failsafe: What Happens to Your Money When You're Incapacitated

· 32 min

Note: The following scenario is fictional and used for illustration.

Emma Richardson, 52, earned £58,000 a year as a marketing director. She had £180,000 in savings and a £1,200 monthly mortgage. When she suffered a sudden stroke at work in March 2024, her husband David discovered something shocking: despite 25 years of marriage, he had no legal right to access her bank accounts.

David couldn't pay the mortgage. He couldn't access the £12,000 in Emma's sole account. He borrowed £4,000 from his brother just to cover essential expenses while waiting for Court of Protection approval. Nine months and £2,847 later, David finally got legal authority to manage Emma's finances. By then, they'd missed two mortgage payments and received threatening letters about repossession.

Every 90 seconds, someone in the UK is admitted to hospital with a brain injury. 982,000 people are living with dementia. Yet only 24% of people have discussed setting up a Lasting Power of Attorney.

This article explains exactly what happens to your bank accounts, mortgage, and bills when you lose mental capacity—and how a £92 Lasting Power of Attorney prevents a £2,000+ family crisis.

Table of Contents

Here's what most people don't realize: no one automatically has legal authority to make decisions about your financial affairs, not even your spouse or adult children.

Under the Mental Capacity Act 2005, legal authority to manage someone else's finances must be explicitly granted. Your husband of 30 years has the same legal access to your bank account as a complete stranger: none. Your devoted daughter who's managed your household bills for years cannot legally withdraw money from your account to pay for your care home.

This isn't a technicality. It's a fundamental legal protection that becomes a crisis when incapacity strikes without planning.

Sarah's story illustrates the shock. Her 67-year-old mother developed dementia and needed full-time care costing £4,500 per month. Sarah discovered that despite having £45,000 sitting in her mother's savings account, she couldn't access a penny of it. The bank refused. The care home demanded payment. And Sarah had no legal authority.

There are only three ways to get legal authority to manage someone else's finances in England and Wales:

  • A Lasting Power of Attorney created in advance while the person has capacity
  • Court-appointed deputyship after capacity is lost
  • Benefits appointee status for DWP benefits only (doesn't cover bank accounts or property)

Only 51% of people concerned about others' finances feel comfortable discussing financial decision-making in old age. This discomfort leads to dangerous assumptions.

Many couples believe a joint bank account solves everything. It doesn't. Banks often freeze joint accounts when one holder loses capacity.

Others think that because they're named on utility bills or handle household finances, they can continue during incapacity. They can't. Without legal authority, every financial institution will refuse access.

Professional trustees sometimes assume their power of attorney document from years ago still works. If it was created before October 2007, it's an Enduring Power of Attorney with different rules. If the person has already lost capacity and there's no registered LPA or EPA, that option has closed forever.

But what exactly does "losing mental capacity" mean? It's not as straightforward as you might think.

What "Losing Mental Capacity" Actually Means Under UK Law

The Mental Capacity Act 2005 defines lacking capacity as being unable to make a specific decision at the time it needs to be made because of an impairment or disturbance in the functioning of the mind or brain.

This definition contains two critical elements most people miss.

First, capacity is decision-specific, not all-or-nothing. Someone may have capacity to decide what to eat for breakfast but lack capacity to manage a £200,000 estate. They might understand simple daily choices but not complex financial decisions about selling property or managing investments.

Second, capacity is assessed at the time the decision needs to be made. Someone with fluctuating mental health conditions may have capacity on good days but not during acute episodes. Someone in early-stage dementia may have windows of clarity.

The law uses a four-step test. A person lacks capacity for a specific decision if they're unable to:

  • Understand the information relevant to the decision
  • Retain that information long enough to make the decision
  • Use or weigh that information as part of the decision-making process
  • Communicate the decision by any means

This means having a dementia diagnosis doesn't automatically equal lacking capacity for all decisions.

James, 71, was diagnosed with early-stage Alzheimer's in January. In February, he still had capacity to create a Lasting Power of Attorney. He understood what an LPA was, could name his attorneys, and explained their role. His GP confirmed he had capacity for this decision.

Six months later, James's capacity had diminished significantly. Creating an LPA was no longer possible. But during that critical window, he could still protect his family.

982,000 people are living with dementia in the UK, with that number rising to 1.4 million by 2040. The average per-person costs tell the financial story: £28,700 per year for mild dementia, £42,900 for moderate, and £80,500 for severe dementia.

Someone must pay these costs. If your attorney can't access your funds because you never created an LPA, your family pays out of pocket while pursuing deputyship.

The window for creating an LPA closes when capacity is lost. You can't create one "just in case" after your capacity diminishes beyond the threshold. Once that window closes, your family faces the immediate consequences described in the next section.

The Immediate Consequences: What Happens to Your Finances Day One

Let me walk you through exactly what happens in the first hours, days, and months after someone loses capacity without an LPA.

Day 1-3: The Realization

Michael collapses at home. Stroke. His wife Rachel calls 999. At the hospital, doctors explain the damage is severe. Michael can't speak, can't process information, has lost capacity.

Rachel remembers the mortgage payment is due in five days: £1,200. She goes to the bank to withdraw money from Michael's account. The bank asks for his authorization. She explains he's in hospital, unconscious, unable to authorize anything.

The bank refuses access. No Lasting Power of Attorney means no legal authority. Rachel's name isn't on this particular account. The money sits there—£8,000—completely frozen while her husband fights for his life.

Standing orders continue running on autopilot. The mortgage direct debit will process this month. But Rachel can't make any new payments, can't transfer money, can't access funds for Michael's care or rehabilitation.

Week 1-2: The Scramble

Rachel contacts the bank again. They explain her options: wait for Michael to regain capacity and authorize access, or apply to become his Court-appointed deputy.

Michael's prognosis is uncertain. He might regain capacity in weeks, months, or never. Rachel can't wait to find out. Bills are accumulating: £180 monthly utilities, £400 for private rehabilitation the NHS can't provide immediately, £200 in insurance premiums that aren't on direct debit.

She borrows £2,000 from her sister. She puts rehabilitation costs on her credit card. She watches the money in Michael's account—money they saved together, money that should be covering these expenses—remain locked away.

Month 1-3: The Mounting Crisis

Rachel files a Court of Protection application. The £371 application fee comes from her dwindling savings. She needs a solicitor to help with the complex forms: another £800.

The Court requests medical evidence. Michael's doctor must complete a COP3 form assessing his capacity. The Court notifies Michael's adult children from his first marriage. One objects to Rachel being appointed deputy, suggesting he should be deputy instead. This triggers additional court involvement.

Meanwhile, the mortgage direct debit fails in month two. Michael's bank account doesn't have enough to cover it—Rachel transferred most money to their joint account last month, before the stroke. She can't transfer money back because she has no access.

Month two missed payment: £1,200 in arrears. Month three: £2,400 plus £120 in late fees. The mortgage company sends threatening letters about repossession proceedings.

Month 3-12: The Long Wait

Court of Protection deputyship typically takes 6-12 months. During this time:

  • Rachel continues borrowing: she's now £6,000 in debt to family
  • Michael's credit rating deteriorates from missed payments
  • Repossession proceedings begin (later suspended when court order arrives)
  • Rachel must arrange a security bond—insurance against her misusing Michael's funds as deputy
  • The emotional toll of fighting bureaucracy while caring for an incapacitated spouse

Finally, after nine months, the Court grants Rachel's deputyship application. She can now legally access Michael's account. Total costs: £371 application fee, £800 solicitor, £400 security bond, £35 annual supervision fee. Plus the £6,000 she borrowed and the damage to Michael's credit history.

A registered Lasting Power of Attorney would have cost £92 and given Rachel immediate access. Every day without legal authority, families watch financial lives unravel despite money sitting in accessible accounts.

But what about joint accounts? Don't they solve this problem?

The Bank Account Freeze: Why Joint Accounts Aren't Enough

Many couples believe a joint bank account means their partner can access money if they lose capacity. This is dangerously wrong.

Banks have discretion to freeze or restrict joint accounts when one holder loses capacity. This isn't banks being difficult—it's about legal liability.

According to MoneyHelper guidance, banks and building societies can use their discretion to temporarily restrict accounts to essential transactions only until a deputy is appointed or a power of attorney is registered.

Why? Because a joint account's validity relies on the consent of both parties. If one person can't consent due to lack of capacity, the legal basis for the account becomes questionable. Banks in England and Wales commonly freeze accounts or restrict them to essential payments like existing direct debits.

Michael and Susan, married 34 years, kept everything in a joint account with an either-to-sign mandate. When Susan had a stroke, their bank froze withdrawals except for standing orders already set up. Michael couldn't access the £28,000 in the account for Susan's care costs. The money was technically theirs together, but neither could use it without legal authority.

Another common scenario involves elderly parents adding adult children to accounts "for emergencies." Mr. Thompson, 78, added his daughter Jennifer to his savings account as a joint holder five years ago. When he developed dementia, the bank restricted the account despite Jennifer being a joint holder. Their reasoning: Mr. Thompson could no longer consent to transactions, making Jennifer's access legally questionable without an LPA or deputyship.

The type of mandate matters, but doesn't guarantee access. An "either to sign" mandate theoretically allows either party to operate the account independently. A "both to sign" mandate requires both signatures. But when one party lacks capacity to sign anything, both types face the same problem: that person cannot legally consent to transactions.

What can continue with a frozen or restricted joint account:

  • Direct debits and standing orders set up before incapacity
  • Essential payments for living expenses at bank's discretion
  • Automatic transactions requiring no new authorization

What cannot happen:

  • New payments or withdrawals
  • Changes to account settings or payees
  • Large withdrawals even for care costs
  • Transferring money to other accounts
  • Closing the account

Scotland has different rules under the Adults with Incapacity Act 2000, often allowing either-to-sign accounts to continue functioning. But in England and Wales, where most UK residents live, the restriction is common.

A registered LPA for Property and Financial Affairs gives your attorney immediate, unrestricted access to all your accounts—sole and joint. No bank discretion. No freezing. No delay. Banks must accept registered LPAs by law.

Compare these scenarios:

Scenario Joint Account Alone Joint Account + LPA
Access after incapacity Bank may freeze or restrict Attorney has full legal access
Time to access funds Weeks to months for deputyship Immediate if LPA pre-registered
Cost to get access £371+ for deputyship application £92 LPA registration (one-time)
Bank cooperation Discretionary based on bank policy Legally required to comply

The joint account assumption has left countless families locked out of their own money during medical crises. If you lose capacity without an LPA, your family faces the Court of Protection route described next.

The Court of Protection Route: Costs, Delays, and Family Stress

If you lose capacity without a Lasting Power of Attorney, your family faces a 6-12 month legal battle costing £2,000 to £5,000+ just to access your own money.

Here's the Court of Protection deputyship process, step by step.

Step 1: Application Preparation (Weeks 1-4)

Your family member must gather extensive documentation:

  • Medical evidence on form COP3, completed by your doctor assessing your capacity
  • Application form COP1 for deputy appointment
  • Notification of all interested parties—relatives who must be told you're applying
  • The £371 application fee paid upfront
  • Often, a solicitor to help navigate the complex forms: £500 to £1,500

Many families find the forms overwhelming. Questions about mental capacity assessment, financial details, and legal authority confuse applicants already dealing with medical crisis stress. Most hire solicitors, adding substantially to costs.

Step 2: Court Review (Months 2-6)

The Court of Protection reviews the application and medical evidence. They may request additional information or clarification. They notify other family members, any current attorneys, and interested parties about the application.

This notification can trigger family disputes. Adult children from different marriages may disagree about who should be deputy. Siblings may contest the application. Relatives may object to financial decisions or express concerns about the applicant's suitability.

According to GOV.UK guidance, the Court usually decides deputyship applications on paper without a hearing. But complex cases or disputes may require court appearances, adding months to the timeline.

During these months, your finances remain largely frozen. Your family continues struggling to pay your bills from their own money.

Step 3: Security Bond Requirement (Month 4-6)

Before granting deputyship, the Court requires the proposed deputy to arrange a security bond—essentially insurance against misusing your funds.

The bond amount depends on your estate value. For large estates, bonds can cost £500 to £1,000 annually. This protects against deputy misconduct, but adds another expense and administrative burden to families already overwhelmed.

Step 4: Deputyship Order Granted (Month 6-12)

Finally, the Court issues a deputyship order specifying the deputy's powers and any restrictions. Only now can your family legally access your finances.

Typical timeline: 6 to 12 months from application to final order. During this entire period, your mortgage, care costs, and bills continue while your money sits inaccessible.

Step 5: Ongoing Requirements

Deputyship doesn't end with the court order. Annual obligations continue:

  • Annual supervision fee: £35 for minimal supervision on estates under £21,000, more for larger or complex estates
  • Annual deputy reports to the Office of Public Guardian detailing all financial transactions
  • Restrictions on gifts, property sales, and major financial decisions without court approval
  • If a professional deputy is appointed: £2,116 in the first year and £1,672 in subsequent years for estates over £20,300

Total Costs Breakdown:

  • Application fee: £371
  • Solicitor assistance: £500 to £1,500 (most families need help)
  • Security bond: £500 to £1,000 per year depending on estate size
  • Annual supervision: £35 to £100+ depending on complexity
  • Professional deputy fees if used: £2,116+ annually
  • Total first year: £2,000 to £5,000+
  • Ongoing annual costs: £35 to £2,000+ depending on estate and deputy type

Compare this to a Lasting Power of Attorney:

  • LPA registration: £92 one-time fee
  • No ongoing supervision fees
  • No court involvement
  • No annual reporting requirements
  • No restrictions on routine financial management
  • Activated immediately when needed

Karen's experience shows the emotional toll. She applied for deputyship for her mother with dementia in January 2024. The court granted the order in November 2024—ten months later.

During those ten months, her mother's care home fees of £4,200 per month had to be paid. Karen paid them from her savings: £42,000 out of pocket. She also spent £2,400 in legal and court fees. When the deputyship finally came through, Karen could reimburse herself from her mother's account. But she'd carried the financial burden during the worst months of her mother's decline.

The stress of court proceedings during a medical crisis, potential family disputes, months of financial paralysis, and the possibility of the court appointing a professional stranger as deputy—all of this can be prevented with advance planning.

How a Lasting Power of Attorney Prevents All of This

A Lasting Power of Attorney for Property and Financial Affairs costs £92, takes 8-10 weeks to register, and gives your chosen attorney immediate access to your finances the moment you need help.

Under the Mental Capacity Act 2005, an LPA is a legal document that appoints one or more attorneys to manage your finances if you lose capacity. You can choose whether it activates immediately upon registration or only when you lose capacity.

What Is an LPA for Property and Financial Affairs?

This type of LPA covers all your financial and property matters. Once registered, it can be used straight away—including while you still have capacity, if you choose. Otherwise, it activates only when you lose capacity.

What Your Attorney Can Do:

Your Property and Financial Affairs attorney has comprehensive powers to manage your money and property:

  • Access all bank accounts, both sole and joint
  • Pay your mortgage, bills, insurance premiums, and other obligations
  • Manage your investments, pensions, and savings
  • Claim benefits on your behalf
  • Buy or sell property in your name
  • Collect rent from any rental properties you own
  • Make financial decisions according to your best interests
  • Manage business interests
  • Employ professionals like accountants or solicitors to help manage your affairs

According to GOV.UK guidance, your attorney can handle everything from day-to-day banking to major property transactions, always acting in your best interests.

The Registration Process:

Creating and registering an LPA involves eight clear steps:

  1. Create the LPA while you have mental capacity using GOV.UK forms online or on paper
  2. Choose attorneys you trust—family members, friends, or professionals
  3. Decide how multiple attorneys will act: jointly for all decisions, jointly and severally, or jointly for some decisions
  4. Complete the LPA with a certificate provider who confirms you understand what you're doing (can be your GP, a solicitor, or someone who has known you for at least two years)
  5. Sign the LPA
  6. Your attorneys sign the LPA
  7. Register the LPA with the Office of Public Guardian
  8. Pay the £92 registration fee (or apply for reduction or exemption)

Registration takes 8 to 10 weeks, sometimes up to 20 weeks during busy periods. Once registered, your attorney can act immediately if you've chosen that option, or when you lose capacity if that's your preference.

Costs Comparison:

Solution Upfront Cost Timeline Ongoing Costs Total Year 1
LPA (in advance) £92 8-10 weeks to register £0 £92
Court Deputyship (after incapacity) £371-£2,000+ 6-12 months £35-£2,116/year £2,000-£5,000+

The cost difference is stark. An LPA is a one-time £92 investment. Deputyship is an ongoing expense that can cost 20 to 50 times more.

Fee Reductions Available:

If you earn less than £12,000 per year before tax, you may qualify for a 50% reduction, paying just £46 per LPA.

If you receive certain means-tested benefits like Universal Credit, Income Support, or income-based Jobseeker's Allowance, you may qualify for a full exemption, paying nothing to register.

Two Types of LPA:

Remember, there are two types of Lasting Power of Attorney:

You need both for comprehensive protection. That's £184 total to register both LPAs, compared to thousands for deputyship.

When to Set It Up:

The answer is now, while you have capacity. Specifically:

  • While you're healthy and have full mental capacity
  • After a dementia diagnosis if you still have capacity for this decision
  • Before major surgery or risky activities that could result in brain injury
  • When you turn 50+ as life stage risks for incapacity increase
  • As soon as you acquire significant assets or property worth protecting

Thomas, 58, set up both LPAs in 2022 for £164 total (the old fee rate). In 2024, he had a severe stroke leaving him unable to communicate. His wife used the Property and Financial Affairs LPA the same week to access his accounts, pay the mortgage, and arrange private rehabilitation.

No court. No delay. No deputyship application. No financial crisis during the worst time of their lives.

You can only create a Lasting Power of Attorney while you have mental capacity. Once you lose capacity, this option is gone forever—and your family faces the Court of Protection route with all its costs, delays, and stress.

Common Incapacity Scenarios: Dementia, Stroke, and Sudden Injury

Legal concepts become real when you see how common these situations are. Let's examine the three most frequent incapacity scenarios and their financial impact.

Scenario 1: Progressive Dementia

982,000 people are currently living with dementia in the UK, a number projected to reach 1.4 million by 2040. The economic impact is enormous: £42.5 billion annually, expected to exceed £90 billion by 2040.

The per-person costs tell the financial story: £28,700 per year for mild dementia, £42,900 per year for moderate dementia, and £80,500 per year for severe dementia. An estimated 70% of care home residents have dementia.

The timeline typically unfolds like this:

  • Early stage: Person still has capacity to create an LPA—this is the critical window
  • Middle stage: May lose capacity for complex financial decisions but retain capacity for daily living decisions
  • Late stage: Needs full-time care, complete financial incapacity

Without an LPA, families face this scenario: Margaret, 72, needs full-time care costing £4,500 per month. Her daughter discovers Margaret has £45,000 in savings but cannot access it without legal authority. The daughter must apply for deputyship while managing the care crisis.

Six months pass before the deputyship is granted. During this time, the daughter pays £27,000 in care costs from her own savings, money she desperately needs for her children's university expenses. Legal fees add another £2,200.

With an LPA created during Margaret's early-stage dementia, her daughter would have accessed savings immediately, paid care costs seamlessly, and avoided months of financial stress.

Scenario 2: Sudden Stroke

Strokes are a leading cause of sudden incapacity in the UK, with hospital admissions rising 28% over the last 20 years according to NHS England. Approximately 136,600 people were admitted to hospital for stroke in 2022/23.

Crucially, strokes don't just affect the elderly. About 25% of strokes occur in people under 65—working-age adults with mortgages, dependents, and complex financial obligations. Stroke is the single biggest cause of severe disability in the UK.

The timeline is sudden and unpredictable:

  • Day 1: Stroke occurs, immediate hospital admission
  • Week 1: Medical stabilization, extent of cognitive impairment becomes clear
  • Month 1: Some people regain capacity, others remain incapacitated
  • Month 2+: Rehabilitation period, possible ongoing incapacity

Without an LPA, consider David's situation: He's 48, has a stroke at work. His wife Claire cannot access the £8,000 in his sole account where his salary is deposited. Their mortgage payment is £1,400 per month. Private rehabilitation costs £800 per month. Claire uses credit cards and borrows from family while pursuing deputyship, accumulating £5,000 in debt over six months.

With an LPA, Claire would have paid all bills immediately from David's account, accessed funds for private rehabilitation the NHS couldn't provide right away, and avoided disruption to family finances during David's recovery.

Scenario 3: Brain Injury from Accident

One brain injury hospital admission occurs every 90 seconds in the UK—approximately 356,000 admissions annually. These can happen at any age: cycling accidents, falls, car crashes, sports injuries, workplace accidents.

The timeline varies dramatically:

  • Day 1: Accident and emergency treatment
  • Week 1-4: Possible coma or severe impairment, prognosis unclear
  • Month 1-6: Recovery trajectory unknown—may recover fully, partially, or remain incapacitated
  • Month 6+: Long-term outcome becomes clearer

Consider Jack, 28, a young professional injured in a cycling accident. He has £15,000 in his account, a £850 monthly rent obligation, student loan payments, and car finance. His parents have no legal authority to access his money.

They must pursue deputyship for their adult son, paying £371 application fee plus £900 in solicitor costs. They cover his rent for eight months while waiting for the court order: £6,800 out of pocket. By the time they get legal authority, Jack has started to recover—but the family has spent nearly £8,000 and endured months of bureaucratic struggle.

With an LPA Jack created when he started his professional job at 25, his parents would have handled all financial obligations immediately, accessed funds for private care if needed, and maintained Jack's financial standing during his recovery.

Scenario 4: Mental Health Crisis

Mental health conditions can cause fluctuating capacity. Someone may have full capacity during stable periods but lose capacity during acute episodes.

The key point: an LPA can be created during capacity windows. Your attorney only acts during periods when you lack capacity, and you can resume managing your own affairs when capacity returns.

These aren't rare events. Brain injury, stroke, and dementia affect hundreds of thousands of UK residents every year. The question isn't "Will this happen to me?" but "Am I protected if it does?"

Setting Up Financial Protection: Your Action Plan

You can take concrete steps today to protect your family from financial paralysis. Here's exactly how.

Step 1: Assess Your Current Situation

Ask yourself:

  • Do I have a registered Lasting Power of Attorney for Property and Financial Affairs?
  • Do I know where my LPA is stored if I have one?
  • Have I appointed attorneys I trust completely?
  • Do my attorneys know they've been appointed and understand their role?
  • Is my LPA registered with the Office of Public Guardian or just completed and signed?

If you answered no to any of these questions, continue to Step 2.

Step 2: Decide Who to Appoint as Attorney

This is the most important decision. Your attorney will have access to all your money and property if you lose capacity. Choose carefully.

Good attorneys have these characteristics:

  • Absolutely trustworthy and financially responsible
  • Likely to outlive you—ideally younger family members or peers in good health
  • Willing to take on the responsibility and administrative burden
  • Capable of managing financial affairs or willing to seek professional help
  • Lives in the UK, making practical management easier
  • Understands your values and wishes about money

Attorney options include:

  • Your spouse or partner
  • Adult children
  • Trusted close friends
  • Siblings or other family members
  • Professional attorneys like solicitors or accountants (who will charge fees)
  • Multiple attorneys acting jointly, jointly and severally, or jointly for some decisions

Ask yourself: Would I trust this person with access to all my money, property, and financial decisions during my most vulnerable time? If the answer isn't an absolute yes, don't appoint them.

Step 3: Choose Your LPA Creation Method

You have three main options:

Option 1: Online Will Service

Some online services provide will creation with LPA guidance. Cost around £99.99 for will services. Timeline: 15-30 minutes to complete forms. Pros: affordable, fast, guided process. Best for: straightforward financial situations.

Option 2: DIY Using GOV.UK Forms

Create your LPA yourself using free forms from GOV.UK. Cost: £92 registration fee only. Timeline: 1-2 hours to complete forms yourself. Pros: free to create, just pay registration. Cons: no guidance, easy to make errors that delay registration. Best for: legally confident individuals comfortable with forms.

Option 3: Solicitor

Have a solicitor create your LPA. Cost: £300-£650+ per LPA depending on complexity and location. Timeline: 1-2 appointments over 2-4 weeks. Pros: expert guidance, handles everything, catches potential issues. Best for: complex estates, business interests, vulnerable people, or anyone who wants professional assurance.

Step 4: Complete the LPA Forms

Whichever method you choose, you'll need:

  • Your personal details: full name, address, date of birth
  • Attorney details: full names, addresses, relationship to you
  • Certificate provider: someone to confirm you have capacity and understand what you're doing (can be your GP, a solicitor, or someone who has known you for at least two years in a professional or personal capacity)
  • Decisions about attorney powers: when they can act, any restrictions or guidance you want to include, how multiple attorneys should make decisions

Step 5: Register with Office of Public Guardian

Submit your completed and signed forms with the £92 registration fee (or apply for a reduction or exemption if you qualify). The OPG will notify you and your attorneys when the LPA is registered.

Registration typically takes 8-10 weeks, sometimes up to 20 weeks during busy periods. Once registered, your attorney can act immediately if you've chosen that option, or only when you lose capacity if that's your preference.

Step 6: Inform Your Attorneys and Family

Critical communication after registration:

  • Tell your attorneys they've been appointed and the LPA is now registered
  • Explain what their role involves and when they can act
  • Show them where the original LPA is stored
  • Discuss your wishes and preferences about financial management
  • Consider creating a letter of wishes—non-binding guidance about how you'd like your finances managed

Step 7: Store Your LPA Safely

Keep your registered LPA secure and accessible:

  • Give a copy to your attorneys so they can use it when needed
  • Keep the original in a safe place: fireproof safe at home, solicitor's office, or secure location
  • Tell family members where to find it in an emergency
  • Consider keeping a digital copy for emergency access, though attorneys will need the original or certified copy to act
  • You can also register the storage location with the OPG

Step 8: Review Your LPA Periodically

Review your LPA every five years or after major life changes:

  • Divorce or remarriage
  • Death of an attorney or replacement attorney
  • Attorneys moving abroad or becoming unsuitable
  • Significant changes to your financial situation
  • Breakdown of trust with an attorney

Important: you cannot amend an LPA once it's registered. To make changes, you must revoke the existing LPA and create a new one. You can only do this while you still have mental capacity.

The time to set up a Lasting Power of Attorney is now—while you have capacity, while you can choose your attorneys, while it's a simple £92 administrative task instead of a £2,000+ family crisis. Don't wait until it's too late.

FAQs: Financial Incapacity Planning

Q: What happens to my bank account if I lose mental capacity?

A: If you lose mental capacity without a Lasting Power of Attorney in place, your bank will likely freeze your account or restrict it to essential transactions only. Family members cannot access your money without legal authority, even spouses or adult children. Without an LPA, someone must apply to the Court of Protection to become your deputy, which can take 6-12 months and cost over £2,000.

Q: Can my spouse access my bank account if I lose capacity?

A: No, not automatically. Spouses have no automatic legal right to access your bank account if you lose mental capacity. They would need either a registered Lasting Power of Attorney for Property and Financial Affairs or a Court of Protection deputyship order to manage your finances legally. Marriage does not grant financial authority.

Q: How much does it cost to get a Lasting Power of Attorney?

A: The registration fee for an LPA is £92 as of November 2025. You may qualify for a 50% reduction (£46) if you earn under £12,000 per year, or full exemption if you receive certain means-tested benefits like Universal Credit or Income Support. Creating the LPA itself can range from free using GOV.UK forms to £99.99 for online services or £650+ for solicitor-drafted documents.

Q: What's the difference between an LPA and Court of Protection deputyship?

A: An LPA is something you set up yourself while you still have mental capacity, appointing someone you trust to make decisions if you later lose capacity. A deputyship is when the Court of Protection appoints someone after you've already lost capacity—often because no LPA was created in advance. LPAs cost £92 to register and activate immediately when needed. Deputyship applications cost £371 plus ongoing supervision fees and solicitor costs, take 6-12 months, and involve court oversight.

Q: Can I still get an LPA after a dementia diagnosis?

A: Yes, if you still have sufficient mental capacity to understand what you're doing. Having a dementia diagnosis doesn't automatically mean you lack capacity for all decisions. The Mental Capacity Act 2005 assesses capacity decision-by-decision and at the time the decision is made. Many people in early-stage dementia still have capacity to create a valid LPA. However, it's crucial to act quickly before capacity diminishes, as you cannot create an LPA once you lack capacity for this decision.

Q: What happens to my mortgage and bills if I'm suddenly incapacitated?

A: Your mortgage, utility bills, and other financial obligations don't stop if you lose capacity. Without an LPA, your family cannot legally access your accounts to pay these bills, leading to missed payments, late fees, damage to your credit rating, and potential property repossession. Direct debits already set up may continue temporarily, but any changes or new payments require legal authority through an LPA or deputyship order.

Q: How long does it take to get Court of Protection deputyship?

A: The Court of Protection deputyship process typically takes 6-12 months from initial application to final order. During this time, your finances remain largely frozen while your family struggles to pay your bills. In urgent cases, the court can make interim orders, but these still take several weeks minimum. This is why setting up an LPA in advance—which takes 8-10 weeks to register but can be done while you have capacity—is so strongly recommended.

Conclusion

Key takeaways:

  • No one can automatically access your finances if you lose capacity—not your spouse, children, or parents
  • Without an LPA, your family faces frozen bank accounts, unpaid bills, and a £2,000+ Court of Protection battle lasting 6-12 months
  • A Lasting Power of Attorney for Property and Financial Affairs costs just £92 and gives your chosen attorney immediate access when needed
  • You can only create an LPA while you have mental capacity—once it's gone, this option closes forever
  • Brain injury, stroke, and dementia affect hundreds of thousands of UK residents every year—financial protection is essential, not optional

Your family will face enough stress if you become incapacitated—medical decisions, care arrangements, emotional grief. Don't add financial paralysis to their burden. A simple £92 decision today prevents a £2,000+ crisis when they're most vulnerable.

Need Help with Your Will?

Understanding financial incapacity planning is just one part of protecting your family. A Lasting Power of Attorney works alongside your will to ensure your wishes are carried out and your finances are protected if you lose capacity. Together, they provide comprehensive protection for your family's future.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete will (legally binding when properly executed and witnessed) plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.

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