Families who support a vulnerable person often want the same things: security, dignity and the best quality of life possible. When a person lacks mental capacity, managing money can become more complex. Without the right arrangements in place, there is a risk that they may not receive the benefits they are entitled to, or that their funds may not be used in the best way to support their needs.

This is where proper financial planning and legal protection can make a real difference. Working with the Court of Protection and making use of deputyships can help ensure that a vulnerable person’s finances are handled carefully, fairly and in their best interests.

This guide explains why effective money management is important, what families should know and how Court of Protection deputyships can help.

Why Financial Protection Matters

When someone is mentally incapacitated, everyday financial decisions can be difficult or impossible for them to make. This might include:

• Paying bills
• Claiming and managing benefits
• Budgeting for day-to-day costs
• Paying for care and support
• Making larger financial decisions about property or savings

If these tasks are not managed correctly, the vulnerable person could miss out on essential state support or struggle to afford the care they need. Good financial management ensures long-term stability and helps to maintain a comfortable, fulfilling lifestyle.

Understanding Mental Capacity and Decision Making

Mental capacity means being able to understand, retain and evaluate information in order to make a decision. Capacity can fluctuate, and it may vary from one decision to another. The law requires that any decision made on behalf of someone who lacks capacity must always be in their best interests.

If your loved one cannot manage their financial affairs, and has bank accounts, investments or a property in their name, you will need to apply for legal authority to deal with those assets on their behalf.

Court of Protection Deputyships

If the person does not already have a Power of Attorney in place, an application can be made to the Court of Protection for a Court of Protection Deputy to be appointed.

A deputy can be:

• A trusted family member
• A close friend
• A professional, such as a solicitor

A Property and Financial Affairs Deputy can:

• Manage bank accounts
• Pay bills and expenses
• Ensure benefits are claimed correctly
• Make financial decisions that support the person’s wellbeing

Deputyships provide legal reassurance. They ensure that financial decisions are transparent and supervised. This protects the vulnerable person and gives families peace of mind.

Using Trusts to Support a Disabled or Vulnerable Person

A trust can be another effective way to manage money for someone who is not able to manage it themselves. Trusts can be especially helpful where the individual receives means-tested benefits. Placing money in a properly structured trust can allow funds to be used to support the person without affecting benefit entitlements.

One common option is a Disabled Person’s Trust . This can:

• Protect the person’s inheritance or compensation award
• Ensure the money is used to enhance quality of life
• Help maintain access to benefits and state support
• Provide long-term security

Trusts are often used alongside deputyships, allowing a broader and more flexible approach to financial care planning.

Benefits of Proper Financial Planning

With the right arrangements in place, families can ensure that the person they care for:

• Receives all benefits and allowances they are entitled to
• Has funds available for essentials such as housing, food, care and support
• Can enjoy extras that improve quality of life, such as social activities or adaptations to the home
• Is financially protected throughout their life

Most importantly, good financial planning helps maintain dignity, independence and comfort.

Working with Professionals

Navigating the Court of Protection and the benefits system can be complicated. Many families find it helpful to seek guidance from experienced solicitors who work in Court of Protection deputyship and trusts for the disabled.

Professional support can:

• Ensure legal compliance
• Reduce the risk of mistakes
• Provide ongoing guidance and reassurance
• Make sure decisions remain in the vulnerable person’s best interests#

In Summary

Looking after someone who lacks mental capacity can be emotionally and practically challenging. Financial management is a key part of supporting their wellbeing. By using tools such as Court of Protection deputyships and trusts , families can safeguard their loved one’s future and ensure they receive the care and support they need.

If you would like tailored advice about deputyships or planning for a vulnerable person, we can help you take the next steps with confidence and clarity.