Loss of Capacity
There often comes a time when, because of the frailty that tends to come with advancing years, or owing to some form of health problem or incapacity, a person is unable to manage their financial affairs or personal welfare.
If you are unable to manage your financial affairs, once this becomes known to financial institutions where your cash and investments are held, those assets are “locked away” and can only be accessed with great difficulty, time and expense. This can include money that is intended to be used for living expenses. Unless, that is, someone has been legally appointed to look after your finances. That person is called your “Attorney”.
If no action is taken in advance to allow for this, the Office of the Public Guardian, in a closed court, will appoint someone to take control. Apart from the problems this can cause you and your loved ones, with decisions perhaps being made by a complete stranger, it is a very expensive process which is likely to deplete the value of the estate you will eventually pass on to your loved ones. It can also take a long time to complete, and in the meantime your loved ones may have no way of accessing money they need and that you would wish them to have.
Also, if your loss of capacity means you need help even with simple day to day matters such as personal grooming, getting around the house etc, and suitable arrangements have not been made, it is quite common for the Local Authority to insist you are moved to a care home. This is even the case when your spouse or partner knows this is not what you would want and believes he or she can look after you at home.
As another example, you may be in hospital and unable to convey decisions to the medical staff about your required care. If your spouse or partner can show they have the authority to do so they can ensure the staff do not withdraw life support at a time they know you would want it to continue, or vice versa.
Example - Elderly Lady Loses Control of Her Life
Alice Parker has now reached the stage where it is difficult for her to manage her own affairs without help. As she has already reached that stage it is no longer legally possible for her simply to have members of her family provide that help. She has to allow the Office of the Public Guardian to appoint someone as her Attorney. This person would usually be a solicitor, charging Alice reasonably high fees, and also acting in a very cautious manner (regardless of what Alice actually wanted to do).
So Alice has now completely lost control of her own life, as well as having to pay someone she doesn’t know to control it for her.