Legal Eagle: Managing an elderly daughter's financial affairs if she has learning disabilities
My daughter has just turned eighteen. She has learning disabilities, and I want to know how I can go about managing her finances as she is unable to do it herself.
There are different ways of managing someone’s financial affairs if they lack mental capacity to do so themselves.
Someone is thought to lack capacity if they cannot understand information relevant to the decision; retain that information; use and weigh up the information in order to make the decision; and communicate their decision
Lasting Power of Attorney (LPA) is a legal document which allows a person, the donor, to appoint an attorney, to make decisions on their behalf. However, your daughter must have mental capacity in order make an LPA. If she does not, this is not an option.
If your daughter lacks mental capacity in relation to her finances, you can apply to be her property and affairs deputy by making an application to the Court of Protection.
An application to the Court of Protection can be expensive and time-consuming. In order for the Court to appoint a deputy, they must be satisfied that your daughter lacks the relevant capacity, that there is a good reason for the application and that you are suitable to manage your daughter’s affairs.
Other family members and interested parties will be notified of the application and will be given the opportunity to object.
The scope of the deputy’s authority will be determined by an order made by the Court of Protection.
As a deputy, you have certain responsibilities and must submit annual reports to the Office of the Public Guardian. These reports allow the OPG to monitor that all financial decisions are being made in your daughter’s best interests.
Appointeeship If your daughter lacks mental capacity to deal with her finances and has only has benefit income, with no savings, investments or other capital then you can apply to Department of Work and Pensions to be her appointee. This allows your daughter’s benefit to be paid to you on her behalf so that you can manage it.
In order to do this, you would need to contact the Department of Work & Pensions. They arrange a visit to your daughter to assess if an appointee is needed, and will interview you to make sure you’re a suitable appointee.
Ben Hoare Bell LLP has specialist Power of Attorney Solicitors who have experience in dealing with LPAs and deputyship applications. To speak to a solicitor please contact us on 0191 275 2626 or email [email protected]. Visit www.benhoarebell.co.uk for further information.