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Making financial decisions on someone else's behalf

You may need to make financial decisions on someone else's behalf, and you may need support and guidance to be able to do this. (Deputies and appointees)

Appointeeship

When a person is unable to manage their financial affairs due to mental incapacity and the only money they are in receipt of is state benefit.

For example:

  • pension
  • pension credit
  • employment support allowance
  • job seekers allowance.
  • universal credit

As an appointee you will not have the authority to look after any other aspect of the persons finances.

For example:

  • property
  • savings
  • investments
  • private/occupational pensions
  • other assets/income

If a person has any of the above and they cannot look after their affairs a deputyship application needs to be made.

How to become an appointee

Please see the below link for details on how to become an appointee.

GOV.UK Become appointee for someone claiming benefits [external link].

Deputyship

When a person cannot look after their own affairs the Court of protection can appoint a deputy where there is no:

  • Lasting power of attorneys
  • Enduring power of attorneys

There are two types of deputyship orders:

Personal welfare

  • Make decisions about medical treatment and how someone is looked after.

Property and financial affairs

  • Do things like pay the person’s bills or organise their pension.

There is an application fee applicable, which is recoverable from the funds of the person lacking capacity.

How to Become a deputy

Please see the below link for details on how to become a deputy.

GOV.UK Become a deputy [external link]

Ordinary power of attorney

Ordinary power of attorney is only valid whilst a person has the mental capacity to make their own decisions.  It gives one or more people the legal authority to handle a person's financial affairs.

A power of attorney provides the person you have appointed to act on your behalf with a legal document to prove their designated powers.

Ordinary power of attorney does not need to be registered with the Court of Protection.

Lasting power of attorney

A lasting power of attorney must be created whilst the person has the mental capacity and understanding of its nature and effect. 

A Lasting power of attorney is a legal document.  It appoints one or more people to act on a person’s behalf if they become incapable of making their own decisions sometime in the future.

There are two types of lasting power of attorney:

Property and affairs

  • This gives the attorney authority to make decisions about your financial affairs.

Personal welfare

  • This gives the attorney authority to make decisions about your healthcare and personal welfare.

Before use, both types of lasting power of attorney must be registered at the Office of the Public Guardian (OPG).

Registration can be done before or after the donor loses the mental capacity to make their own decisions.

There is a fee chargeable for registering the lasting power of attorney.

The forms to create a lasting power of attorney can be completed by:

  • the person to whom it relates.
  • by a solicitor

Make a lasting power of attorney

Please see the below link for details on how to make a lasting power of attorney.

GOV.UK Office of the public guardian [external link].

The financial protection team

 In the absence of family or friends, help is available to people who cannot manage their own financial affairs.

Clients must be unable to manage their own finances or be subject to financial abuse.

It is never assumed someone who has a mental illness or learning difficulty is incapable of managing finances.

The Mental Capacity Act (2005) [external link] gives more detail.

The level of help with finances varies depending on individual circumstances.

Help can include:

  • paying bills
  • paying care fees
  • investigating and securing capital amounts
  • arranging sale of property
  • investing capital

 

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