Above the age of 65, a person’s risk of developing Alzheimer’s disease or vascular dementia doubles roughly every five years.
It is estimated that dementia affects one in 14 people over 65 and one in six over 80.
This matters as because nowadays many more people have financial products that need management post retirement/ age 65.
Sipps are the most common, but there are an increasing number of people with mortgages and other form of debt that need input.
From a legal perspective we are also seeing people delay their estate planning, often until it is too late.
Court of Protection powers
Under the Mental Capacity Act 2005 the Court of Protection can make decisions about a person’s finances, health and welfare where that person lacks the mental capacity to do so themselves.
The Court also has the power to appoint Deputies to make decisions on behalf of a person who lacks capacity.
The main powers of the Court include making decisions about whether:
- A person has capacity to make a particular decision
- An action is in a person’s best interests
- A person is being deprived of their liberty
The Court can also rule on:
- The validity of lasting and enduring powers of attorney
- The appointment of deputies and what powers they have
- Whether a deputy has acted correctly and removal of deputies or attorneys
- Deciding whether a Power of Attorney is valid
- Deciding whether Deprivation of Liberty Safeguards are justified
- Deciding upon where a person should live or who should look after them (when other interested parties can’t agree)
- Deciding what type of medical treatment someone should receive – where there is doubt or dispute
- Whether an attorney can make gifts on behalf of the person who lacks mental capacity
- Whether it is appropriate for a Statutory Will to be made for the person who lacks mental capacity
The two types of deputy
A deputy can be appointed to cover all a person’s financial and welfare issues or different people may be appointed depending on their expertise and willingness to undertake different requirements.
Property and financial affairs deputy
Under a property and affairs court of protection order the appointed deputy can take full control of the person's financial affairs.
This can include managing pensions or mortgages or other debts, applying for benefits and paying bills. They can also sell a home in order to pay for nursing care.
Personal welfare deputy
This allows a person to make decisions about the individual’s wellbeing and medical treatment.
Issues with the Court of Protection
At this stage it is important to stress that the Court of Protection does what it is required to do by law.
