Frequently Asked Questions:Court of Protection

What is the Court of Protection?

The Court of Protection is an important part of the Supreme Court of Justice. When someone becomes mentally incapable of handling their own financial affairs the Court of Protection can appoint someone else, often known as a Receiver to manage the affairs of that person under the Mental Health Act 1983.

What is the Public Guardianship Office?

The Public Guardianship Office is the administrative arm of the Court of Protection which oversees the day-to-day management of the financial affairs of an incapable person.

Who can be appointed as a Receiver?

A Receiver is appointed by the Court and can be a relative, friend or a professional such as a solicitor. In order to be appointed the proposed Receiver will need to demonstrate their suitability to the Court of Protection and show that they are willing and able to devote the necessary time to looking after the financial affairs of another person on a regular basis.

What does a Receiver do?

Subject to the overall supervision of the Court of Protection the Receiver will look after the day-to-day finances of the incapable person. This includes receiving all income, paying expenses, applying for the appropriate state benefits and filing the annual tax returns. The Receiver must also submit an annual account to the Court of Protection detailing all of the money which has passed through their hands during the previous year and submitting a projection of the expenses for the following year.

Can a Receiver deal with the client's property?

In circumstances where the client wishes to move or is entering permanent residential care, the Court of Protection can issue a direction that the Receiver can deal with the sale of their property. The Court of Protection will require evidence as to the true market value of the property to be purchased or sold and must formally approve the sale price before Contracts can be exchanged.

What are the benefits of a Professional Receiver?

If a person needs considerable physical or emotional support it may be preferable to have a Professional Receiver to look after the financial aspects, leaving the family and friends free to concentrate on their care. At Hatten Wyatt we have considerable experience in making all of the additional applications that may also become necessary within the course of a Receivership including, tax planning, gifts, settlements and statutory wills.

For any specific advice please contact our Private Client Department.