If you are working with or caring for someone who is not able to manage finances, you will need to follow the guidance provided by the Mental Capacity Act in dealing with the person’s financial affairs.
In general, decisions can be taken about small transactions using the person’s available cash, as long as you can show that the decision is in the person’s best interests.
You will need to have specific authority, such as power of attorney or deputyship, if you wish to make more important decisions or use money in the person’s bank account.
The Mental Capacity Act allows people to name those they want to make decisions for them in the future when they might lack capacity. You can set up lasting powers of attorney for property and affairs if you want someone else to look after your finances. This will give your attorney the authority to make financial decisions on your behalf.
Lasting powers of attorney can only be set up by people who have the capacity to do so. If financial decisions need to be made for someone who does not have capacity to make a lasting power of attorney, the Court of Protection can appoint a deputy. The deputy will be the person the Court thinks is most suitable to hold the authority.
As a last resort when there is no other arrangement in place, Cambridgeshire County Council may apply to the Court of Protection for a deputyship order to manage the finances of people who lack the capacity to do so themselves. However, for some people who do not have any financial assets other than their benefits, application for Appointeeship to the Department of work and Pensions may be more appropriate. For further enquiries for either Deputyship or Appointeeship, please contact the Cambridgeshire County Council Deputyship Officers on 01223 715571 or 01223 715570.