Managing someone else’s affairs

What does managing someone else’s affairs involve?

There may be a point in your life where you are unable to manage your finances and need someone to do this for you. Or if you care for a family member or friend, you may need to step in to manage their finances and other affairs, if they are unable to do so themselves. This might be because you or the person you care for are;

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

Managing someone else’s affairs can include;

looking after their bank accounts, savings, investments or other financial affairs
buying and selling property on their behalf
claiming and spending welfare benefits on their behalf
deciding where they live
making decisions about their day-to-day personal care or healthcare.

How can I prepare to manage someone else’s finances or arrange for someone to look after my finances?

It’s never too early to think about how you want your finances to be managed if you were unable to do so yourself.

Or if you are a regular carer for someone who couldn’t manage without your help it would be helpful to plan ahead and find out how they would like their finances to be managed if they were unable to manage themselves.

You may suddenly need to manage someone else’s finances for them if they become unwell or their condition worsens. This may be unavoidable but it can help to plan ahead and prepare for this just in case you ever need to step in

Planning Ahead – Power of Attorney

There are some legal arrangements that you can make that can give you the power to make decisions and manage the person’s finances if you ever need to. This is called Power of Attorney.

Power of Attorney must be arranged while the person you care for can still make such decisions, so it’s worth thinking about it as soon as possible. Read more on www.gov.uk

Age UK Newcastle offer a Lasting Power of Attorney service which costs £200 for a single person and £300 for a couple.

Age UK also offer advice on Power of Attorney.

It would be wise to also seek legal advice if you are thinking of setting up a power of attorney. Read more on InformationNOW about planning ahead and Where to get Legal Advice

What to do if someone loses their capacity to make decisions and you don’t have any legal arrangements in place?

Money Advice Service has more information on how to arrange to manage someone’s finances when they lose their mental capacity.

Financial Deputyship

If you or the person you care for loses capacity to make decisions about their finances and you do not have a lasting power of attorney in place, a financial deputyship can be arranged. This means that someone else is appointed by the Court of Protection to manage their finances. Read more on www.gov.uk.

Managing someone else’s benefits

Appointeeship

Appointeeship allows for the management of benefits only on behalf of someone who lacks capacity to do so themselves. This can be arranged by contacting the Department for Work and Pensions.

Managing the finances of someone you care for

Money Advice Service has more information on help to manage the money of someone you’re caring for

Other Useful Information

You may find it useful to consider the following matters when planning ahead for someone else.

Last updated: July 31, 2017