In a recently reported case, an entrepreneur endured a twist of fate as his former cohabiting partner absconded with his entire fortune of $8 million. This distressing event unfolded against the backdrop of the businessman’s deteriorating mental health, exacerbatedby the aftermath of two debilitating strokes.
Following his strokes, the businessman, despite being only 62 years old—an age not typically associated with a lack of capacity—was declared mentally incapable of decision-making by the High Court. This highlights the significance of proactively establishing a lasting power of attorney (LPA) at an early stage. Such legal measures serve as a protective shield, particularly when individuals find themselves in a situation of unexpected incapacity, vulnerable to potential exploitation by those in close proximity. It underscores the necessity of pre-emptive action to secure one’s interests in the event of of diminished capacity.
In this distressing case, the cohabiting woman took advantage of the businessman’s compromised mental state, manipulating him into emptying his bank account and signing away his $3 million home. Despite unusual behaviour noticed by the bank staff and the man’s lawyer, the exploitation went unnoticed. By the time the man’s sister intervened, the woman had already seized most of his assets, including bonds, shares, cash, and valuables. The businessman’s health deteriorated after two strokes, and the court found him unfit to make decisions, ruling that undue influence coerced him to surrender his assets. Although the final ruling ordered the woman to account for and return all the assets wrongfully taken from the man, this case serves as a stern reminder to all to act early in establishing legal safeguards.
By obtaining an LPA, individuals can ensure that their chosen and credible legal representative is readily available to assist them, providing a proactive approach to managing their affairs and making decisions on their behalf when needed. The LPA enables early planning and the designation of a legal advocate of their choice in place for unforeseen circumstances when one may be vulnerable to exploitation.