When someone lacks the mental capacity to manage their own financial affairs, they can seek help from someone who will organise these aspects of their life for them. The Court of Protection can intervene by appointing a family member, close friend or professional solicitor as a deputy. The court may make the decision to do this through a court order, or a family member or close friend can apply for the position.

If you find yourself facing the possibility of losing capacity, or that someone you care for is in this position, understanding the legal rights and protections involved in financial deputyship is essential. By doing so, you can help to ensure that either your rights or the rights of the vulnerable person are upheld, financial affairs are handled appropriately, and that the appointed deputy operates within the bounds of law.

In the following guide, we explain the key responsibilities that a property and financial affairs deputy must carry out and the legalities surrounding them.

Defining the Role of a Financial Deputy

The role of a property and financial affairs deputy involves making decisions about the management of finances and property for someone who can not due to a lack of capacity to do so themselves. This may encompass mental health issues, age-related conditions such as dementia, or the aftereffects of serious injuries or illnesses that have resulted in a loss of mental capacity.

The responsibilities of a financial deputy are broad and multifaceted, ranging from everyday financial decisions like paying bills, to more significant financial tasks such as handling the sale of property, or making investment decisions on behalf of the individual.

The role of a deputy is a position of trust and accountability, and requires a commitment to the well-being of the person under their care. Someone in this role with bad intentions could financially abuse the vulnerable person, so it is essential that any deputy candidates are properly vetted by those who know them, and by the court during a hearing.

The Legal Framework for Financial Deputyship

Financial deputyship operates within the Mental Capacity Act 2005. This act sets the parameters for who can become a deputy, the manner in which they should carry out their duties, and the scope and limits of their powers. Furthermore, the act is instrumental in establishing the Court of Protection as the legal authority that has the purpose of making decisions on financial or welfare matters for people who cannot make decisions for themselves.

The Court of Protection also manages deputies responsible for health and welfare matters regarding a vulnerable person. If the court or an individual involved also finds that the vulnerable individual needs help to manage their own personal welfare, a deputy may be appointed to help them manage aspects of their life such as meal preparation, daily routines and medical treatment. One person can take the role of both a financial and personal welfare deputy, or multiple people may be appointed with the responsibilities.

The Legal Rights of a Financial Deputy

To manage a vulnerable person's financial affairs, a chosen person will need to be officially deputised through a court order, affording them the rights to do so. However, these rights are not without limits, and abuse of them may be clear to other people in the individual's life, or to the Court of Protection's supervision.

Certain limitations include the fact that a deputy cannot make a will for the person, or place their money into a trust without the express approval of the court.

Ensuring Protections for Individuals under Financial Deputyship

The safeguarding of individuals under financial deputyship is of utmost importance. To ensure this, the Mental Capacity Act and the Court of Protection provide robust protections and enforce penalties for those who try to abuse their positions of power. This includes the ability of the court to remove deputies who fail to act in the best interests of the individual, and the requirement for deputies to submit an annual report detailing all actions taken and decisions made during that period.

The Importance of Professional Legal Advice in Financial Deputyship

Managing someone else's financial affairs is not a task to be taken lightly. The complexities and nuances involved can be daunting and confusing, and missteps can have serious legal repercussions. Every case is unique, with its own challenges and considerations, and this is where the benefits of professional legal advice become evident.

JMW Solicitors provides guidance through the regulations involved in property and financial affairs deputyship. We ensure that the deputy's rights are fully understood and protected, and provide reassurances that the deputy is acting within the bounds of the law. If the deputy is failing in their duties to do this, our will disputes team can assist with the removal of a deputy. 

We can also help deputy candidates through the appointment process, or advice on how a professional deputy from our team of solicitors may be of benefit. By seeking professional advice, deputies can confidently perform their duties, knowing they have the backing and support of legal experts.

We understand that each situation is unique and that there is no one-size-fits-all solution. That is why we take the time to understand each individual's specific circumstances and provide tailored advice. Whether it's explaining the legal rights and protections, guiding you through your duties as a deputy, or helping you navigate any challenges you may face, we're here to help.