A local authority has taken control of the estate of an elderly man suffering from Alzheimer’s disease, following concerns over his niece’s conduct with regards to his finances.

The man was 91 years old and lived in a care home. He had not drawn up a lasting power of attorney detailing who should look after his affairs when he was unable to do so himself.

His niece had access to his bank accounts. The man revealed that his niece was withdrawing money from his account and so the local authority took action to protect him.

The niece reacted angrily when questioned about the money. She said she was helping her uncle with his bills and getting his money organised.

The man then made a will which left his entire estate to his niece. An independent psychiatrist judged that the man did not have testamentary capacity, which meant that he was not capable of making rational and sensible decisions regarding the division of his estate.

The local authority applied to be allowed to manage the man’s estate on his behalf. The man objected and wanted his niece to manage his affairs instead.

The Court of Protection heard that the man’s niece had previously been told she should keep a note of all the money she took from her uncle’s account, and how it was used.

She had failed to do this and a brief look into the account revealed there were various withdrawals she couldn’t account for. She admitted she had kept some of the money for herself.

The court gave the local authority control of the man’s estate for his own financial protection. The niece was not accused of theft or fraud. However, the court was not confident that she would be able to put the best interests of her uncle ahead of her own in the future with regards to how to use his money.

The local authority released a £200-per-week allowance for the man to use, with the rest of his money protected for his own benefit.

The Court of Protection is often used in this way to protect the interests of people who have lost the capacity to manage their affairs.

However, the best way to prevent difficult situations such as this is to draw up a lasting power of attorney while you are still fit and healthy. That way you can state in advance who you want to look after your affairs when you are no longer able to do so yourself.

Please contact us if you would like more information about lasting powers of attorney or the Court of Protection.