Deputies and appointees
The financial protection team
In the absence of friends or family help is available to people who cannot manage their own financial affairs.
Clients must 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) gives more detail.
The Mental Capacity Act (2005) [external link].
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
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 benefits.
For example:
- pension
- pension credit
- employment support allowance
- job seekers allowance
- universal credit
Become an appointee
GOV.UK Become appointee for someone claiming benefits [external link].
As an appointee you will not have the authority to look after any other aspect of 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.
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 deputy
Make decisions about medical treatment and how someone is looked after.
Property and financial affairs deputy
Do things like pay the person’s bills or organise their pension.
This is the deputyship to apply for.
There is an application fee applicable.
This is recoverable from the funds of the person lacking capacity.
Become a deputy
GOV.UK Become a deputy [externa 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.
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 lasting power of attorney
This gives the attorney authority to make decisions about your financial affairs.
Personal welfare lasting power of attorney
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
GOV.UK Office of the public guardian [external link].