Paying for adult social care

Managing someone else's money and health decisions

There may be a point in your life when you can’t manage your finances and need someone to do this for you. If you care for a family member or friend, you may need to manage their finances or other affairs when they’re unable to do so. For example, because you or the person you care for are:

  • unable to make decisions for themselves because of mental health condition (This is known as loss of mental capacity)
  • ill or disabled
  • out of the country for a while

 

Lasting Power of Attorney (LPA)

A Lasting Power of Attorney (LPA) is a way of planning for a time when you may lose the mental capacity to manage your own finances or make decisions about your personal welfare. It must be arranged while you still have your mental capacity.

It is a legal arrangement where you officially give a named person, such as a trusted friend or family member the power to make decisions about your financial affairs. This person becomes your 'attorney'. It can be used while you still have mental capacity and your attorney can make decisions on things such as:

  • money, tax and bills
  • bank and building society accounts
  • property and investments
  • pensions and benefits

There are two types of LPA:

  • Property and affairs
  • Health and welfare

 

Property and affairs LPA

This gives the attorney the authority to make decisions about your financial affairs. This can be used while you still have mental capacity and your attorney can generally make decisions on things such as:

  • money, tax and bills
  • bank and building society accounts
  • property and investments
  • pensions and benefits

 

Health and welfare LPA

This gives the attorney the authority to make (or help you make) decisions about things like your:

  • daily routine. For example washing, dressing and eating
  • medical care
  • where you live

Your attorney must ask for money from the person or bank in charge of your funds. They might need to spend your money on things that maintain or improve your quality of life. This can include:

  • new clothes or hairdressing
  • decorating their home or room in a care home
  • paying for extra support so you can go out more. For example to visit friends or relatives or to go on holiday

Medical treatment: as long as there is no restriction on your powers under the LPA, you can consent to, or refuse, medical treatment on behalf of the donor.

Life-sustaining medical treatment: You cannot refuse life-sustaining treatment on behalf of the donor unless they specifically authorised you to do so. The donor must have signed section 5 of the LPA form (LP1H) giving their consent for you to make such decisions.   If you make a decision on life-sustaining treatment, you must not be motivated by a desire to bring about the donor’s death. The decision must always be made in their best interests.

 
How to set up a Lasting Power of Attorney

You can get the forms from the Office of the Public Guardian or you can instruct a solicitor to prepare one for you. The completed forms must then be registered with the Office of the Public Guardian  before it can be used.
 

Deputyship

As a deputy, you are authorised by the Court of Protection to make decisions on behalf of someone else who ‘lacks mental capacity’. This means they can't make a decision at the time when it needs to be made.  They may lack mental capacity because they have:

  • had a serious brain injury or illness
  • dementia
  • severe learning disabilities 

There are 2 types of deputy.

  • Property and financial affairs deputy: where you do things like pay the person’s bills or organise their pension.
     
  • Personal welfare deputy: where you make decisions about medical treatment and how someone is looked after.

You can apply to become someone’s deputy from the Court of Protection. 

 

Appointeeship

An appointee is a person or organisation who is given permission to manage the benefits of someone, who doesn't have the mental capacity to do so themselves.

An appointee can be:

  • an individual.  For example, a trusted friend or relative
  • an organisation or representative of an organisation. For example a solicitor or Newcastle City Council

As an appointee you’re responsible for making and maintaining any benefit claims. You must:

  • sign the benefit claim form
  • tell the benefit office about any changes which affect how much the claimant gets
  • spend the benefit (which is paid directly to you) in the claimant’s best interests
  • tell the benefit office if you stop being the appointee. For example, the person can now manage their own affairs

Read more on GOV.UK about how to become an appointee for someone claiming benefits.