Getting an Alzheimer's diagnosis can bring a lot of uncertainty for the person diagnosed and their loved ones. Along with considering their health and care, it’s important to think about what will happen to someone's finances and property if they stop being able to manage them.

On 21st September it is world Alzheimer's Day, and this year’s theme is, the earlier you know, the more you can do: a dementia diagnosis matters. This has been chosen to highlight the importance of addressing the disease head on with learning and identifying the right support as early as possible.

For families, early planning can make a big difference when it comes to managing the financial and property affairs of the person with Alzheimer’s.

What is Court of Protection property and finance deputyship?

If someone loses the mental capacity to manage their finances and has not made a valid Lasting Power of Attorney (LPA), a family member or other suitable person may need to apply to the Court of Protection to become their deputy.

A property and financial affairs deputy can be authorised to make decisions about the person's money and property. This might include:

·       paying bills

·       managing bank accounts

·       applying for and dealing with benefits and pensions

·       managing investments

·       making decisions about where they live.

Deputyship is different from simply helping a relative with their finances. Having Alzheimer's doesn’t give their family the right to access their bank account or make financial decisions for them and organisations could refuse to deal with anyone but the account holder. The appropriate legal authority is needed where the person lacks capacity to make the relevant decisions themselves.

When might someone with Alzheimer's need a property and finances deputy?

Alzheimer's affects people differently, and a diagnosis doesn’t automatically mean they lack capacity.

A persons mental capacity is decision-specific. The person may not be able to make complex financial decisions but can still make other decisions about their day-to-day life. Having dementia shouldn’t be used to assume that someone cannot make decisions.

As Alzheimer's progresses, there may come a point when a person can no longer make certain financial decisions independently.

For example, they may need help with:

• paying household bills
• managing bank and savings accounts
• claiming benefits or pensions
• arranging and paying for care
• managing investments
• maintaining or selling their home
• dealing with financial institutions or other organisations.

A deputy is given the authority to make these decisions by Court of Protection. They have to act the person's best interests and follow the requirements of their deputyship order.

What does becoming a financial deputy involve?

A property and financial affairs deputy must keep the person's money and property separate from their own as well as keeping appropriate financial records. They also need to submit annual reports to the Office of the Public Guardian explaining the decisions they have made, complete any tax returns and apply for any relevant benefits among other responsibilities.

However, it’s important to understand that a deputy cannot use the person's money as they wish or make decisions on their behalf if they still have the capacity to do it themselves.

The Court of Protection order will set out the deputy's authority and any restrictions that apply.

What if there is already a Lasting Power of Attorney?

This is an important distinction. If someone has made a valid property and financial affairs LPA when they had capacity, the person they named as attorney can make financial decisions on their behalf within the authority given by the LPA.

An LPA allows the person themselves to choose who they trust to act for them. With a deputyship, the Court of Protection decides who should be appointed.

This is one reason why thinking about an LPA soon after a dementia diagnosis can be worthwhile. If the person still has the capacity to make an LPA, they can make their own choices about who should help them in the future.

If they have already lost the necessary capacity, however, it may no longer be possible for them to make an LPA and a deputyship application may be needed instead.

Why early planning matters

A dementia diagnosis can make it tempting to put difficult conversations about the future to one side and enjoy the persons capacity while you can. However, early planning means the person with Alzheimer’s then has the opportunity to make the necessary arrangements and control the process while putting appropriate legal arrangements in place.

The Alzheimer's Society recommends considering planning ahead as soon as possible, including making or updating a Will and considering an LPA.

If someone you love has been diagnosed with Alzheimer's, understanding what legal arrangements are already in place can be an important first step.

If you want to learn more about  property and financial affairs deputyships, including Court of Protection applications and the responsibilities involved Pryers Court of Protection lawyers are specialists who are happy to help.