We regularly get asked to draft and prepare Powers of Attorney for a person when they have lost capacity. Unfortunately, to prepare a Power of Attorney, the person signing the document and providing the instructions, must have the capacity to provide instructions, understand the document and its effect.

What is an Enduring Power of Attorney?

An Enduring Power of Attorney (EPA) is a legal document which anyone with capacity can prepare which appoints a third party (the attorney) to manage their personal financial affairs. Please see our Private Clients section of the website for further details on Powers of Attorney.

What if the person has lost capacity already?

If a person has already lost mental capacity, it is unfortunately too late to put in place an Enduring Power of Attorney and the only legal option available is to apply to the Courts to be appointed as Receiver. Following the Order from the Court, the person appointed will be able to make decisions on that person’s behalf.

Without either an Enduring Power of Attorney or Receivership order it is impossible for someone to manage another individual’s financial affairs.

What is a Receivership Order?

A Receivership Order can only be applied for through the Court when a person already lacks the capacity to manage their own affairs but does not have an EPA in place and decisions need to be made on their behalf. It appoints a person to assist with the financial affairs of the person who has lost capacity to do this themselves.

Some of the tasks that might undertake are:

• Managing bank accounts
• Paying bills, including a mortgage and day to day expenses
• Paying care fees
• Claiming benefits
• Filing tax returns
• Arranging/managing investments and shares
• Ensuring that the person has enough money for their day to day needs
• Selling or renting property

Who can make the application?

The application for Receiver can be made by anyone over the age of 18 but it is usually a family relative or close friend.

However, as part of the appointment process, the Court will consider all the available evidence and assess the suitability of the applicant to be appointed. You are not guaranteed to be appointed (even if you are the spouse of child of the person) as the Courts consider what is in the persons best interest.

Can MannBenham be appointed?

In some circumstances it is appropriate to have a professional appointment in place, such as an advocate. MannBenham Advocates are happy to act professional and currently act in this role for numerous clients.

I don’t live in the Isle of Man – does this impact the application.

The Court rules state that to be appointed under a Receivership Order, that you must be resident on the Isle of Man.

There are limited extenuating circumstances when this rule can be waived and should you have any questions we will be happy to discuss these with you.

What happens once appointed?

The Receiver is legally responsible for dealing with the person’s financial affairs and it is important that they keep accurate financial records as they will need to report to the Court every year as to how that person’s financial affairs have been managed. For any complex financial situations, it is important that the Receiver seeks the relevant professional advice.

Can I make health decisions?

A Receiver is unable to make ongoing and general health and welfare decisions on behalf of an individual.

Can MannBenham help?

MannBenham can help with every aspect of becoming a Receiver. Whether that is assistance with the application process or guidance when it comes to making decisions in the individual’s best interests.

Making decisions on someone else’s behalf can be very difficult and some people find it quite stressful especially at first.

Our team of experienced and compassionate advisors can provide the expert advice that you need, along with practical advice on things such as:

• Paying for care
• Accessing state benefits if applicable
• Making an application for a statutory Will
• Making specific applications
• Submitting reports (due annually) to the Court

With our expertise, tailored approach, attention to detail, comprehensive services, and commitment to professionalism and sensitivity, we ensure that our services meet your needs with utmost care and precision. By choosing MannBenham, we are not only securing your own peace of mind but also ensuring that your loved ones are protected and provided for.

Take the first step towards safeguarding your legacy with MannBenham Advocates today.

MannBenham are here for you

We are here for you to talk through what you need, with years of experience and knowledge. If you’re considering applying for a Receivership and want to find out more about the process or want assistance with your application, please feel free to speak with one of our Private Client Team on +44 (0)1624 639350 or email them at [email protected] to arrange your free initial consultation.

Source: MannBenham Advocates
Receivership in the Isle of Man – written by Patrick Swanney | Article posted on 17 July 2023