There are instances where a person may decide that they no longer wish to deal with their own finances, or a formal decision has been reached by medical professionals that someone is no longer mentally capable of dealing with their own financial affairs. 

This information offers guidance to the options available to safeguard a persons finances and ensure that they are being dealt with appropriately. 

You can also find this information in Urdu under 'Downloads'. 

If a person still has mental capacity

Appointeeship 

When someone has lost capacity and only receives benefit income and has minimal savings then appointeeship may be sufficient to deal with their affairs. A family member or friend can make an application to the DWP by way of a form BF56. On receipt of the completed form a Visiting Officer from the DWP will make an appointment to see that the person has lost capacity and that the person making the application is appropriate. Once given then the person who is made appointee is able to deal with all the person’s benefit income.

Power of Attorney  

An individual can transfer certain legal rights to another person thus authorising them to act on their behalf. This can be limited to one particular financial transaction, or a general power can be granted to deal with all financial matters. 

An individual should be aware, however, that the Power of Attorney will cease to be effective when the person granting it becomes mentally incapable and no longer understands the arrangements previously agreed to.  

Independent legal advice should be sought if considering Power of Attorney.

Loss of Mental Capacity

Lasting Powers of Attorney

From October 2007 a new form of authority to allow someone to manage your affairs on the loss of your capacity was introduced called a lasting power of attorney. Unlike previous attorneys there are two types:

• A property and affairs LPA for your financial and property matters.
• A personal welfare LPA for your health and personal welfare

A person makes a LPA whilst they still have mental capacity and it has to be registered with the Office of the Public Guardian when created.

Enduring Powers of Attorney entered into before 1 October 2007 and still valid and should be registered when capacity has been lost.

Deputyship through the Office of the Public Guardian

When someone loses mental capacity and has not made a LPA then an application has to be made to the office of the Public Guardian for the court to appoint someone to manage their financial affairs.

Independent legal advice may be advisable when dealing with either of the above.

Vulnerable Adults or Financial Abuse

There may be instances where you suspect that a vulnerable adult is being either physically, mentally or financially abused.  If you suspect any aspect of abuse you can contact Social Care Direct, see related links, in strictest confidence, who will then refer the case to the appropriate officer for advice and guidance.