Understanding the Role of a Professional Deputy in Managing Finances

When a loved one can no longer manage their finances due to a lack of mental capacity, it can be a challenging and emotional time for families. In these situations, the Court of Protection may appoint a deputy to make financial decisions on behalf of that individual.

In this blog, we will explain what a deputy is, when a professional deputy is needed, and the key responsibilities that come with this role.

What is a Deputy?

A deputy is a legal role appointed by the Court of Protection for individuals who lack the mental capacity to make decisions for themselves in relation to property and financial affairs or health and welfare decisions.

A deputyship order is the legal document that enables a deputy to have this authority, this can be a lay person (non-qualified individual e.g. family member) or a professional (e.g. a Solicitor).

There are two types of deputies: one for health and welfare and one for property and financial affairs. This blog focuses on deputies for financial matters, which is a service we offer at Hodge Jones & Allen.

When is a Professional Deputy Needed?

A professional deputy is needed when someone’s financial matters require expert handling, especially in cases where:

• Family or friends are not able or willing to take on the role
• Complex financial situations require specialist knowledge, such as managing large estates, investments, or multiple properties
• Impartiality is necessary due to family conflicts or other sensitive issues, where a neutral, professional approach is required

A professional deputy ensures that all decisions are made with the individual’s best interests at heart, while navigating the financial responsibilities effectively.

Key Responsibilities of a Deputy for Finances

• Managing Assets: This involves looking after the individual’s bank accounts, savings, investments, and any property they may own. The deputy ensures that all assets are protected and managed responsibly.
• Budgeting and Planning: The deputy creates a budget to ensure that the individual’s financial resources are used effectively to cover daily living expenses, care fees, and other necessary costs.
• Paying Bills and Expenses: Making sure all bills, taxes, and care fees are paid on time to avoid any financial complications.
• Making Major Financial Decisions: The deputy may need to make important decisions, such as selling property, managing investments, or making large purchases. Any major decisions will always be made with the individual’s needs and best interests in mind.
• Keeping Records: It is essential for the deputy to keep detailed financial records. These are submitted to the Office of the Public Guardian on a regular basis to ensure transparency and accountability.
• Upholding the individual’s wishes: The deputy has to make the day to day decisions whilst keeping in mind what the individual would do but for the Deputyship order being in place.

Being appointed as a professional deputy is a significant responsibility, requiring careful management of an individual’s finances to ensure their financial security. Our experienced Mental Capacity & Deputyship team provides expert guidance and support in handling all aspects of deputyship for finances. If you or your loved one needs assistance with managing finances through a professional deputy, contact us today on 0330 822 3451 or request a callback.

The author of this blog is Lia Gosai, a Legal Assistant in our Private Client team.