Parent/Carer information
Managing finances
Parent/carers often worry about how they can support their children in managing money as they grow up. Some young people will be able to learn skills like budgeting and saving, helping them to become financially independent. For other young people, managing money will not be realistic due to their complex needs. They will require support with finances throughout their lives. This support can come through becoming a Deputy or an appointee if they lack mental capacity, or through Lasting Power of Attorney if they have the necessary mental capacity.
Becoming a Deputy
A Deputy is appointed by the Court of Protection to manage all of a person’s financial affairs if they are unable to do so themselves. This includes handling savings, benefits, and any other income or assets like property and valuables. The responsibilities of a Deputy are defined by an individual court order and can vary.
A Deputy is supervised by the Office of the Public Guardian (OPG), while appointees are overseen by the Department of Work and Pensions (DWP).
An Appointee is responsible for managing a person's welfare benefits to ensure everyday expenses are covered and must report any changes in circumstances to the DWP. An appointee's legal authority is limited to handling welfare benefit payments.
For more information: Become an appointee for someone claiming benefits - GOV.UK
If your child has a significant amount of money, savings, or assets, it may be more appropriate to apply to the Court of Protection. The Court of Protection is responsible for:
• Deciding if a person has the mental capacity to make their own decisions
• Appointing Deputies to make decisions for those who lack mental capacity
• Giving permission for one-off decisions on behalf of someone who lacks mental capacity
• Making decisions about a lasting power of attorney or enduring power of attorney
• Handling applications to make statutory wills or gifts
• Deciding when someone can be deprived of their liberty
You can apply to become someone’s deputy if they ‘lack mental capacity’. This means they cannot make a decision for themselves at the time it needs to be made. They may still be able to make decisions for themselves at certain times.
As a deputy, you’ll be authorised by the Court of Protection to make decisions on their behalf.
• Property and financial affairs deputy - You’ll do things like pay the person’s bills or organise their savings.
• Personal welfare deputy - You’ll make decisions about medical treatment and how someone is looked after.
You cannot become someone’s personal welfare deputy if they’re under 16. Get legal advice if you think the court needs to make a decision about their care.
• There’s doubt whether decisions will be made in someone’s best interests, for example because the family disagree about care
• someone needs to be appointed to make decisions about a specific issue over time, for example where someone will live
For guidance about when you need to make a personal welfare application go to Deputies: make decisions for someone who lacks capacity: Overview - GOV.UK
You can apply to be just one type of deputy or both. If you’re appointed, you’ll get a court order saying what you can and cannot do.
When you become a deputy, you must send an annual deputy report to the Office of the Public Guardian (OPG) each year explaining the decisions you’ve made.
If you prefer, you can apply directly online through the website or contact a solicitor who will complete the process on your behalf. To become a deputy you need to pay an application fee. The cost of the direct application can be found on the government website, however you will need to seek advice directly from your solicitor about fees if you are instructing a solicitor to make the application for you.
Bury Adult Care Financial Support Service has a Money Management Service who could offer more information about Appointee and Deputyships. For more information contact asc.moneymanagement@bury.gov.uk
An LPA allows a parent to help their adult child with financial issues and paperwork. This is important to a young person who may find those things stressful or anxiety inducing. It may be that a young person needs an attorney for a period of time and as they get older they become more confident in dealing with their affairs, in which case the LPA is no longer needed. Conversely, a young person may consider putting an LPA in place for the future if they know that later on in life they will need that extra help.
Solicitors can help advise and set up an LPA. Your child will need to show that they have the requisite mental capacity (the ability to make their own decisions).
As with becoming a deputy, there are two types of LPA:
• Property and financial affairs - You’ll do things like pay the person’s bills or organise their savings.
• Personal welfare - You’ll make decisions about medical treatment and how someone is looked after.
For more information: Make, register or end a lasting power of attorney: Overview - GOV.UK