Potential Scenarios
What if a person sinks into a coma or becomes mentally impaired such that he is unable to make important decisions about his property and welfare. For example, money has to be withdrawn from his bank account to pay for medical expenses?
What if an elderly person has severe dementia and suddenly makes a substantial gift of money or property, or changes his will in a way, which is incongruous with his character?
What if a child is intellectually challenged and unable to make his own decisions about his property and welfare? In some instances, banks or other third party institutions may require the parent or guardian to provide documentary proof that he or she is legally authorised to make decisions on behalf of the child regarding those matters.
This is where the Mental Capacity Act comes in.