What does “mental capacity” mean?

By Matt Cresswell, Founder of Power of Attorney Online and author of
Everything you ever wanted to know about LPAs (but were afraid to ask)

12th May 2025

Updated: Friday 9th January 2026

So, what does mental capacity mean? Losing mental capacity can happen suddenly, through illness, an accident, or a medical condition such as dementia or stroke. If this happens and you do not have a Lasting Power of Attorney in place, your life and your family’s lives can become far more complicated than many people realise.

Can your family manage your finances without an LPA?

No. Without a Property and Financial Affairs LPA, your loved ones have no automatic legal right to access your bank accounts, savings, or investments.

Even if bills need paying or care costs need arranging, your spouse, partner, or children cannot legally step in. Banks and financial institutions will refuse access without proper authority.

To gain control, your family would need to apply to the Court of Protection for a deputyship order. This process can take several months and often costs far more than setting up an LPA in advance.

Who makes medical and care decisions if you have no Health and Welfare LPA?

If you lose capacity and do not have a Health and Welfare LPA, decisions about your care and medical treatment may be made by healthcare professionals or social services.

While doctors will always act in what they believe to be your best interests, they may not know your personal values, preferences or wishes. Your family may be consulted, but they will not have the final say.

An LPA allows you to choose someone you trust to speak for you and make decisions that reflect what you would have wanted.

What is the Court of Protection and why is it a problem?

The Court of Protection exists to protect people who lack capacity, but the process can be slow, expensive and stressful for families.

Applying for deputyship involves court fees, ongoing supervision charges and strict reporting requirements. Decisions can be delayed while approval is sought, leaving finances frozen and important choices on hold.

An LPA avoids this entirely by giving your chosen attorneys legal authority as soon as it is needed.

Can not having an LPA cause family disagreements?

Yes. Without clear instructions, family members may disagree about who should be responsible for your affairs or what decisions should be made.

These disagreements can escalate into disputes that damage relationships and add emotional strain at an already difficult time. An LPA removes uncertainty by clearly stating who you trust to act for you.

Why setting up an LPA now protects everyone involved

A Lasting Power of Attorney can only be made while you have mental capacity. Waiting until it is needed is often too late.

By setting up an LPA in advance using a service like Power of Attorney Online, you keep control over your future, protect your finances and wellbeing, and spare your loved ones from unnecessary stress, delays, and costs.

What is the key takeaway?

Losing mental capacity without a Lasting Power of Attorney puts decisions about your life into the hands of the courts and professionals rather than the people you trust most.

Taking action now is a simple step that provides reassurance, clarity, and peace of mind. An LPA is not about expecting the worst. It is about being prepared and protecting what matters most.

Written by Matt Cresswell

Matt Cresswell is the Founder of Power of Attorney Online, a service helping people across England and Wales create Lasting Powers of Attorney through guided online support and expert document reviews. He founded the business following his father's diagnosis with dementia, after experiencing first-hand how confusing the LPA process can be for families. Matt's expertise focuses on Lasting Powers of Attorney, planning ahead and helping families prepare for the future before a crisis occurs.