Supporting someone with their finances

Planning ahead

It is important to plan ahead and think about putting legal arrangements into place about who would make decisions on your behalf if you were to lose mental capacity to make those decisions (for example, as a result of a brain injury or stroke, a mental health illness, or dementia).

This could be a lasting power of attorney which nominates someone you trust to make decisions about your finances, property and manage your day-to-day financial affairs.

Government advice to help you plan ahead in case you are unable to make and understand decisions in the future.

The Mental Capacity Act 2005 sets out your rights and what happens if you lose the capacity to manage or make decisions about your finances.

Lasting power of attorney (LPA) for property and financial affairs

A lasting power of attorney allows you to appoint someone, or more than one person, to help you make decisions or make decisions on your behalf about your property and financial affairs. The person or people you appoint should be someone you trust to make decisions in your best interest.

Lasting power of attorney must be registered with the Office of the Public Guardian (OPG).

After your lasting power of attorney is registered, and while you have mental capacity, you continue to be in control of your property and financial affairs or you can ask your attorney for help.

You can also set up a health and wellbeing LPA – where you appoint someone to be make decisions about things like your medical care, care and support, moving into a care home and life-sustaining treatment. Your attorney for health and wellbeing will only be able to make such a decision on your behalf if you have been assessed as lacking mental capacity to make that decision.

You can set up one or both types of LPAs. You don’t need to set them both up at the same time.

Setting up and registering a lasting power of attorney:

You can apply to set up lasting power of attorney online yourself, or download forms and fill them in, or you can get help filling forms in – from a solicitor, or an independent adviser.

If you are unsure of the process, or have complicated financial/property matters, or other complex matters, getting professional advice may help prevent later problems.

• Money Helper (a government-backed organisation providing impartial information) has information on their website about setting up a power of attorney in England and Wales or you can phone them on 0800 138 7777.
• The Society of Later Life Advisers (SOLLA)  is a not-for-profit organisation helping people and their families find an accredited later life adviser local to them. You can find out more on their website or phone 0333 2020 454.
• The Law Society has information on power of attorney and finding a solicitor

Making decisions as an attorney if the person lacks mental capacity

If you are a named attorney on their registered lasting power of attorney for property and financial affairs, you can manage financial affairs for that person immediately. If you are a named attorney on their enduring power of attorney (EPA) set up before 1 October 2007, you will need to register the EPA with the Office of the Public Guardian as soon as the person starts to lose, or has lost, mental capacity.

Government advice on acting as an attorney.

If the person lacks capacity and had not made a power of attorney for property and financial affairs, you will need to apply to the Court of Protection to make decisions on their behalf.

Becoming an appointee for benefits

To manage a person’s state retirement pension and welfare benefits, you must apply to the Department for Work and Pensions to become the person’s appointee for benefits.

This does not allow you to make any other financial decisions on their behalf.

Government advice on becoming an appointee for someone claiming benefits.

Becoming a court-appointed deputy for property and financial affairs

If the person has other financial assets (such as private income, savings, investments or property) and lacks mental capacity to manage their financial assets and there is no registered lasting power of attorney or enduring power of attorney, you must apply to the Court of Protection to become deputy. This means you can manage their ongoing financial and property matters. You can also apply to the court to become deputy for ongoing personal welfare decisions.

Government advice on becoming a deputy.

• The Society of Later Life Advisers (SOLLA) is a not-for-profit organisation helping people and their families find an accredited later life adviser local to them. You can find out more on their website or phone 0333 2020 454.
• The Law Society has information on applying to the Court of Protection and finding a solicitor.

If there is no one suitable to become a deputy

If there is no one deemed to be suitable to become your deputy, the council may make an application to undertake this role.

Find out about our deputy and appointee offer.

If you manage someone’s finances

If you are managing, or applying to manage the financial affairs of someone who lacks mental capacity, and their financial affairs are complex or their capital assets are significant, you may wish to seek independent financial information and advice.

Finding independent financial information and advice.