Loss of Capacity, no Power of Attorney, what next?

Sea_Shell

In the circumstance that someone loses mental capacity to handle their own financial affairs, and they have no Power of Attorney in place, what happens if no one applies to the Court of Protection?

Is there any LEGAL requirement on "next of kin" to do this, and if they don't, what happens to the accounts/investments?

Is there a requirement to contact the banks concerned and advise them of the loss of capacity, and if so, who has this authority without PoA. Would the bank even talk to you (even if you were in the application stage?)

What would happen to all the DD's or SO's they may have set up on their accounts, along with Pension and Investment income.

I've read that it can take quite a while to get the CoP authorisation, so what would happen to everything while you're in Limbo?

I understand there is obviously a "moral" obligation for family to step in and apply, but is there a LEGAL one? If so, who would be forced to do it.

And before you say it.......Yes, you can lead a stubborn Mule to water but.....

Many thanks

getmore4less

NO legal requirement to apply to be a deputy.

The public guardian, court of protection and the mental capacity act all play their part.

A good guide for people involved with those that lack capacity.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/497253/Mental-capacity-act-code-of-practice.pdf

Sea_Shell

Thanks for that. Wow what a long and very wordy document. Enough to make anyone run a mile from getting involved!!!!

How do the various agencies even become involved if no one notifies them. Who would be responsible for notifying them?

troubleinparadise

I suspect Social Services would be the notifier as they would probably become involved via a hospital, the Police, neighbours or whomever raises a concern that there is a vulnerable person who needs caring for, including their finances.

There are people who genuinely have no immediate family members to carry this out, and others who by circumstance have no family members willing/able to do this.

Much the same as after a death, Banks and utilities etc would just have to wait for a legally appointed attorney/deputy to take charge.

elsien

Any family member using the accounts as if the person still has capacity (e.g. through third party mandate) should be aware that is is fraudulent, would also flag up a safeguarding when it came to light and come back and bite them later on. If nothing changes, it's probable that things would trundle on in their own without anyone noticing but that would mean not being able to change providers, or deal with the DWP, for example.

In the longer term, if the person needs care, then when the financial assessments are done and bills need to be paid that's when it gets complicated. Does the person who is reluctant to do the power of attorney want their family to be in the situation where they have people chasing them for money on the person's behalf?
Or, to give a recent example I encountered, a person who lost capacity who still lived independently who was targeted by unscrupulous people and was giving them large amounts of cash on a daily basis. She went through thousands before the bank flagged an alert. We all hope we won't come to that, but actually none of us really knows.

If no family member wants the responsibility the person (if there are enough assets) can appoint a solicitor to manage finances under the power of attorney. Otherwise once the person has lost capacity the local authority could request one of the agencies who offer a paid appointee service to take on the role. They can deal with DWP but can't touch bank accounts or investments until the deputyship is in place so yes there would be a period of limbo which would have to be sorted retrospectively.