How funds are released to ‘P’ (the Protected Party)

A commonly asked question we get is, “How does P access their funds once the deputyship is in place?” Acting as a Deputy carries big responsibility, much of it financial, including managing the Protected Party’s (P’s) finances and ensuring funds are only used for their benefit.

A property and financial affairs Deputy’s financial responsibilities span from paying for food, clothing and utilities to selling P’s property and investing the funds.

In this guide, our Court of Protection solicitors explain how money is released to the Protected Party once it has been approved.

First things first: how P’s finances are managed

Once appointed, a Deputy must open a distinct account in P’s name, separate from the Deputy’s own money or anybody else they may be appointed for. Whilst a Deputy is authorised to manage P’s finances, the funds are P’s and should only be used for their benefit.

Requesting funds: does P have capacity?

It is important to note that a deputyship is not transactional in the same way a bank is, whereby the funds are requested and immediately released without question. The Deputy first needs to consider whether P has the capacity to make the decision surrounding the proposed expense, such as a gift payment to a family member or friend.

If P does not have the capacity to make the decision, the Deputy has a duty to consider each request and make a best interest decision as to whether it is reasonable, proportionate and affordable for the payment to be made.

An unwise decision does not necessarily mean P lacks the capacity to make that decision.

The Deputy also needs to be mindful of P’s circumstances and whether the release of those funds would give rise to any safeguarding concerns, particularly if P struggles with substance abuse or is particularly vulnerable to exploitation or undue influence by the people around them.

Releasing funds

Once the Deputy is appointed and an account has been opened, they can simply transfer funds in the same way anyone with capacity can with their own account via online banking, as they are the ‘authorised person’ for the account.

Whilst full consideration needs to be made, the process of releasing funds from P’s bank account can be done quickly and often on the same day (for bank accounts), depending on the level of expense requested. A request for funds to go food/clothes shopping, pay bills or go out for dinner is fairly standard; however, if P calls their Deputy asking for a sports car or a holiday home abroad, the Deputy may need to spend a little more time making sure this is in P’s best interest!

Once approved, how does P get their money?

If payment has been approved and deemed in P’s best interests, there are a few different ways in which the Deputy can release the funds to P.

Bank transfer

If it is a one-off payment, this is normally done via bank transfer from the Deputy account to P’s account. However, adaptations may be needed depending on P’s capacity to manage smaller sums of money and their understanding of the value of money.

If it is an ongoing payment, such as a dedicated personal allowance (in place of what would otherwise have been a ‘wage’), a standing order can be set up so that these are regular payments and do not require Deputy approval every month. This is often the arrangement when P has the capacity to manage smaller sums of money each week or month. A regular payment can support them in their independence, provide them with structure and align with their best interests.

Cash and cheques

In some cases, P may benefit from a cash budget rather than using a card, particularly if physical sight of the funds can assist in their budgeting each week. However, it is not common practice for a Deputy to withdraw cash from the account and hand it to P, largely because it is not practical or cost-efficient to do so. It also does not leave a clear paper trail evidencing that the funds have been handed to P.

It is therefore more often the case that funds will either be paid onto a debit card in P’s name, with the carer then assisting P in withdrawing those funds (where needed) or onto a ‘carer’s cash card’ which has Deputy oversight.

Cheques are very rarely used and, we anticipate, will eventually become obsolete. Alongside the above considerations, a Deputy is required to use the least restrictive route when managing P’s funds, and bank transfers and pre-agreed budgets are a more efficient way of managing P’s funds. There are, of course, exceptions, but cheques are generally considered a last resort.

Contact our deputyship solicitors

If you are a Deputy who needs help managing your duties, our experienced deputyship solicitors can help.

Call our Court of Protection team on 0117 325 2929 or fill out our online enquiry form.