A stroke, an accident or the progression of dementia can change who is able to make decisions far more quickly than most families expect. When clients ask what happens without a lasting power of attorney, the answer is often difficult: nobody automatically has the legal authority to manage your finances, property or care decisions simply because they are your spouse, partner or adult child.
For people with property portfolios, a growing business or substantial family assets, that lack of authority can create practical problems at precisely the point when clear decisions are needed. A lasting power of attorney, commonly called an LPA, is not only about later life. It is about retaining control over who can act for you if you cannot act for yourself.
This article relates to LPAs in England and Wales. Scotland and Northern Ireland have different arrangements and documents.
What happens without a lasting power of attorney?
If you lose mental capacity without a valid LPA in place, your chosen relatives or business colleagues cannot simply step in. They may be able to offer support, but they cannot legally take over many decisions or access assets in your sole name.
Mental capacity means being able to understand, retain and weigh up relevant information to make a particular decision, then communicate that decision. Capacity is decision-specific. Someone may be able to choose everyday purchases but not understand a complex property sale, investment decision or care agreement.
Without an LPA, the usual route is an application to the Court of Protection for a deputyship order. The court decides who is suitable to act and what powers they will have. This process can be lengthy, involves forms, evidence and fees, and may be especially frustrating when bills need paying, contracts need signing or a business requires active management.
A deputy is supervised by the Office of the Public Guardian and must meet ongoing reporting requirements. That oversight is valuable, but it is not a substitute for choosing a trusted person in advance. The court may appoint a family member, but there is no guarantee it will be the person you would have selected or that their authority will cover every matter in the way you intended.
Your finances and property may be left in limbo
A Property and Financial Affairs LPA allows your attorneys to deal with matters such as bank accounts, pensions, investments, tax, insurance, property and household bills, subject to the instructions and preferences you include. It can be used with your permission while you still have capacity, or only once capacity is lost, depending on how you want it to operate.
Without one, everyday administration can become unexpectedly restrictive. A joint account may help with regular household spending, but it does not give a partner unrestricted authority over sole accounts, investment platforms, rental properties or business interests. Banks and financial providers have their own safeguarding duties and will not release funds merely because a relative says they know what you would have wanted.
For a landlord, missed action could mean delayed repairs, tenancy issues, mortgage payments or insurance renewals. For an owner-managed business, the stakes can be higher. If contracts require a director’s signature, payroll needs authorising or key supplier decisions are waiting, incapacity can place real pressure on the business and the people who rely on it.
An LPA is not, however, a complete business continuity plan on its own. Company articles, shareholder agreements, partnership terms and bank mandates may set separate rules. A well-planned LPA should sit alongside these documents so that personal and commercial arrangements support each other rather than leave a gap.
Selling or managing property can be delayed
Property is often where families first see the consequences of missing authority. If a person needs to move into care, their home may need to be managed or sold to fund suitable arrangements. A relative cannot sign sale paperwork for a property in the person’s sole name without legal authority.
Even where a property is jointly owned, the position depends on the ownership structure and the transaction involved. Delays can lead to an empty property, ongoing costs and difficult decisions being postponed. A properly prepared financial LPA gives attorneys a recognised route to act, while your chosen instructions can guide them on issues that matter to you, such as keeping a property let, selling only if necessary, or consulting particular family members.
Health and welfare decisions are not automatically a family right
A Health and Welfare LPA is separate from the financial document. It gives chosen attorneys authority to make decisions about care, living arrangements, medical treatment, day-to-day routines and life-sustaining treatment, but only when you lack capacity to decide for yourself.
Without this LPA, health and social care professionals will make decisions in your best interests under the Mental Capacity Act. They should consult those close to you, and family views can be highly influential. But consultation is not the same as legal decision-making authority.
This distinction can matter when there are differing views about where someone should live, which care provider is appropriate, or what level of risk they would have accepted in order to remain at home. A Health and Welfare LPA lets you appoint people who understand your values and gives them a formal role in those decisions.
There are sensible choices to make here. Some people appoint the same attorneys for both LPAs because those individuals know their circumstances well. Others choose different people: perhaps a financially capable relative for property matters and a compassionate, local family member for welfare decisions. The right approach depends on trust, availability, practical skills and family dynamics.
The cost is measured in more than court fees
A deputyship application has direct costs, including court fees, possible professional fees and annual supervision charges. The financial impact can increase where urgent applications or complicated assets are involved. Yet the wider cost is often uncertainty.
Family members may disagree about who should apply, how money should be spent or whether a property should be sold. A person who has always handled the finances may suddenly be unable to explain where important documents are kept or how a portfolio is structured. During an already stressful period, relatives can find themselves spending months trying to obtain authority that could have been arranged earlier.
For business owners, incapacity can also affect confidence among staff, clients and lenders. A plan that clearly identifies who can deal with personal assets and who can make business decisions can reduce disruption. It is a practical act of protection for the people around you, not a prediction that something will go wrong.
Choosing attorneys requires care, not haste
An LPA gives significant authority, so the choice of attorney deserves the same care as a will or succession plan. An attorney must be at least 18 and have the ability to make decisions responsibly. For a financial LPA, they must not be bankrupt or subject to a debt relief order.
Trust is essential, but it should not be the only consideration. Consider whether the person is organised, willing to ask for professional advice, comfortable with paperwork and likely to be available if needed. You can appoint more than one attorney and decide whether they must act together, can act separately, or use a mixture of both depending on the decision.
Acting jointly can provide additional oversight, but it may slow matters down if one attorney is unavailable or relationships change. Allowing attorneys to act jointly and severally is more flexible, although it requires confidence in each person’s judgement. Replacement attorneys can also be named, protecting your arrangements if an original attorney dies, loses capacity or no longer wishes to act.
Clear guidance can prevent avoidable uncertainty. You may include legally binding instructions, as well as non-binding preferences that explain how you would like decisions approached. These should be carefully worded. An unclear instruction may make an LPA difficult to register or use, which is why tailored advice is particularly useful when property, investments or business interests are involved.
Put authority in place while the choice is still yours
An LPA must be made while you have mental capacity. Once capacity is lost, it is too late to create one and deputyship may be the only route available. Registration with the Office of the Public Guardian should also be completed in advance, rather than left until a crisis, because the document cannot be used until it is registered.
It is worth reviewing LPAs after major changes such as divorce, bereavement, a new business venture, the purchase of significant property or a change in family circumstances. An LPA does not replace a will, but together they address two different risks: what happens if you cannot make decisions during your lifetime, and what happens to your estate after death.
The Legacy Wills takes a practical, bespoke approach to these decisions, helping clients consider LPAs alongside wills, trusts, property ownership and business succession. The aim is not to add paperwork for its own sake. It is to ensure the people you trust have the right authority at the time it is most needed.
A conversation now can spare your family from seeking permission later, when their energy should be focused on your care and wellbeing rather than court forms and uncertainty.