When your child is a minor, as the parent, you are able to manage their finances for them. However, what happens when they reach 18 and considered to be an adult?
This blog will focus on adult children who may suffer from a disability from birth, a brain injury or even learning disabilities which may make them unable to manage their own finances.
There are many parents who may be in that position where they have children who are dependent on them as a result of a disability and/or where continuous care is required. As children grow older, they will most likely need support from loved ones also.
Once the child turns 18 however, as a parent you cannot continue to manage their finances for them in the same way as previously.
Depending on the capabilities of your child, they may capacity to manage their own finances but may also require your support. There may be other instances where the child simply does not have the required capacity to manage their own finances and therefore understand the effects of some of the financial decisions made by them.
Your options are therefore putting a Lasting Power of Attorney (LPA) in place or an application to the Court of Protection for a deputy to be appointed.
An LPA can be created which will enable to appointed attorney(s) to help make decisions on the child’s financial affairs and even their health & welfare. Any decisions made by the attorney must always be in the best interest of the donor. An LPA can only be made if the donor, the child in this case has the requisite capacity.
It is important to add that just because someone does not have capacity to make complicated decisions on their finances, does not automatically mean they do not have capacity to understand and make an LPA at all. In such cases a professional capacity assessment should be carried out.
If your child does not have the capacity to make an LPA and their financial assets still need to be managed by someone, a deputy will need to be appointed and that will require an application the Court of Protection. A deputy could be a family member or even a professional deputy.
For more information about making a Lasting Power of Attorney, please do contact us.
16 February 2022
The views expressed in this blog do not in any way constitute advice and are specific to the date noted. As time passes the facts can change and readers should consult their adviser for up to date advice on any matters covered within the blog. Invest Southwest offers an initial review, which is free of charge, however long it takes. From this we will be able to confirm how we can help and give you an opportunity to decide if you would like us to. Thereafter, we will provide you with detailed recommendations and exact costs. Please note that we promise not to levy any kind of fee unless we can demonstrate a benefit to you.
