As a parent of a child with disabilities, it can be difficult to navigate management of their financial affairs as they transition into adulthood. This blog aims to explain the options available to help understand what is right for you and your child / young adult.
When would you need to take control of your child’s financial affairs?
As a parent of a child under 18, you will have been able to control any accounts, trusts funds or income for your child. However, when they reach the age of 18, they are an adult and, therefore, it is important that you have the relevant legal authority in place to assist with management of their financial affairs.
What can you do?
If your child has capacity to manage their financial affairs but would benefit from some assistance, they can sign a Lasting Power of Attorney enabling named persons to assist with financial management.
It is important to note that you may be advised to obtain a Lasting Power of Attorney for your child by other institutions, for example the local authority. However, this is not possible if your child does not have capacity to understand and instruct in this regard.
If it is the case that your child is unable to make a Lasting Power of Attorney because they lack capacity to do so, there are other options to consider:-
- Apply for an Appointeeship through the Department of Work and Pensions (DWP); or
- Apply for a Deputyship through the Court of Protection; either appointing yourself or a professional.
What is an Appointeeship?
If your child has no financial assets or bank accounts, and only receives state benefits, an Appointeeship may be the most suitable option.
As an Appointee, you are able to manage state benefits that your child receives from the DWP and act for them, for example making a claim or updating the DWP about any changes in circumstances.
The DWP will visit you and your child to ensure that an Appointeeship is appropriate and necessary. The DWP agent will explain and fill out the relevant forms with you and send them off for approval. Once approved, you can act for your child following guidelines set by the DWP. As you are the person’s parent carer, this process requires no application fees.
You can apply by ringing the specific department for the benefits that your child receives, for example if your child receives only Disability Living Allowance, you would ring the Disability Living Allowance helpline. For more information for which department to contact visit https://www.gov.uk/become-appointee-for-someone-claiming-benefits.
What is a Deputyship?
If your child has more complex financial circumstances, including, but not limited to, bank accounts in their name or the need to enter into tenancy agreements, then a Deputyship would be more appropriate. You would need to apply to the Court of Protection using the relevant application forms. You would be applying to be appointed as a Lay Deputy for your child, or alternatively you can request that a professional Deputy be appointed.
A Deputy is able to make decisions on behalf of the vulnerable adult regarding their financial and property affairs. Deputies take on a large responsibility, as they must be familiar with the Mental Capacity Act 2005 and act in compliance with it when making decisions.
A Deputy is supervised by the Office of the Public Guardian (OPG), which means that a report detailing all decisions, income and expenditure must be submitted annually.
Deputyship application are lengthy and can take 9-12 months to be put in place. A Deputyship application can also be costly, but fee exemptions and remissions are available if your child has low income.
The fees, combined with the complex legal process, is the reason why a Deputyship is only recommended where necessary.
Professional Deputyships
Often parents and carers can feel that the day-to-day decision making that comes with being a Deputy is overwhelming, and the legal process can be time consuming. Therefore, the appointment of a Professional Deputy to manage your child’s affairs may be another way forward, whilst still maintaining their best interests. Professional Deputies must also comply with the Mental Capacity Act 2005 and will be supervised by the OPG. You can instruct a professional Deputy by contacting a law firm which offers this service. The firm will then make an application to the Court of Protection.
We would recommend looking at the panel Deputy list online at Panel deputies: list of court-approved professionals – GOV.UK, which is split by region for ease. It is a good way to consider Deputies, who are court approved, and look into the firms that they work for, to see if they will be a good fit for you and your child.
Panel Deputies are often appointed by the Court of Protection in cases where there are no other available Deputies, as they are court approved trusted advisors.
How can we help?
Ramsdens Solicitors can help you and your family navigate the transition to adulthood for your child with a disability when it comes to organising their financial affairs.
Our Private Wealth and Succession team can advise you with respect to Lasting Powers of Attorney, while our Court of Protection team can help you with applications for Lay Deputyships and the appointment of Professional Deputies should there be concerns around capacity.
For more information call our Court of Protection team to discuss your options on 0344 326 0049, email COP@ramsdens.co.uk
The above article is for illustrative purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any part of the information given.
Furthermore, the information contained is accurate and up to date as of the date of publication. Readers should be aware that legislative frameworks may have been amended since the original date of publication.