Budgeting and reporting guidelines for lay Deputies

Acting as a lay Deputy for a partner, family member or close friend is a significant undertaking. Taking on responsibility for a loved one’s financial decisions requires careful planning and diligent reporting to ensure that the individual under your care (‘P’) receives the best possible support.

Effective budgeting and accurate reporting are a crucial component of handling this responsibility successfully, enabling you to fulfil your role whilst remaining compliant with the requirements placed on you.

To help get you started, there are several fundamental things that lay Deputies should keep in mind to ensure they’re on the right track:

Understand your responsibilities

Before diving into budgeting and reporting, it’s crucial to understand what aspects of the vulnerable person’s affairs will actually come under your jurisdiction.

As a lay Deputy, you’ll be responsible for managing the financial affairs of someone who lacks the capacity to do so themselves. The Court of Protection will set out the scope of your powers within the Order appointing you. This typically takes in managing their income, paying bills, making investment decisions and handling property matters on their behalf.

You must always act in the best interests of the individual in question, taking steps to ensure their needs are met and their assets are protected, whilst giving due consideration to their wishes.

Create a clear budget for handling their funds

As you’ll be looking after P’s financial affairs, budgeting is a fundamental aspect of your duties as a lay Deputy. So, what does effective budgeting look like?

Take stock of income and expenses

Begin by listing all financial sums and sources of income such as pensions, benefits, rental income and/or any other financial resources available to P.

Once you have this information to hand, you’ll need to identify regular and anticipated expenses, including:

• Household bills (e.g. rent, utilities and council tax)
• Care, support and medical expenses
• Insurance costs
• Food and daily living expenses
• Any outstanding debts or financial obligations

Prioritise essential spending

Ensure that necessary expenses – for example, care, support and living costs – are covered before considering discretionary spending. If the individual has surplus funds, consider whether savings, investments or gifts (if and when permitted by the Court) are appropriate.

Maintain a contingency fund

Unexpected costs are likely to arise from time to time, so it’s always advisable to maintain a contingency fund to give some room to manoeuvre in case of emergencies, e.g. medical treatments, property repairs or unforeseen care and support needs.

Review the budget regularly

People’s circumstances can and do change over time – particularly those displaying signs of vulnerability or diminished capacity. You’ll need to review and, where necessary, adjust the budget regularly to reflect any shifts in income, changes in care and support requirements or new financial obligations.

Make sure that P is in receipt of everything they’re entitled to

This includes state benefits, but also any additional funding which can be obtained towards the cost of care and support, or exemptions and reductions on other expenditure which may be available.

Keep up-to-date financial records

Maintaining detailed and accurate records of all financial transactions will make the reporting aspect of the role as straightforward as possible.

You’ll also want to implement the following best practices:

• Use separate bank accounts – you must keep P’s monies separate to your own, and a dedicated Deputyship bank account is the most straightforward way to do this. This ensures transparency and minimises accidental misuse of funds. It also makes record keeping that bit easier – an added bonus when it comes to reporting!
• Track all transactions – maintaining a record of all income and expenses is key; this can be done using spreadsheets or financial software. Keep receipts, invoices and bank statements as evidence of each transaction – you never know when you’ll need to refer back to them.
• Log major financial decisions – if you do make any significant financial decisions (e.g. selling property, investing money or purchasing expensive equipment), document the reasoning behind these choices to demonstrate that they align with P’s best interests, and ensure that you have Court approval if this is needed.

Completing the Deputy Report (OPG102)

Each year, lay Deputies must submit a report to the Office of the Public Guardian (OPG) on their activities over the past 12 months. There are number of steps to completing it properly:

• Understand your duties – familiarise yourself with your legal responsibilities as a deputy. The report should reflect that you are acting within your remit and in P’s best interests.
• Be accurate and honest – it should go without saying that you should always provide clear, truthful and complete information. Inaccurate details may raise concerns or lead to further inquiries, causing delays or other avoidable problems.
• Use plain language – stick to straightforward language to describe decisions and explain your actions, avoiding legal or technical jargon wherever possible.
• Explain major decisions – make sure to give clear reasons for any significant choices, for example moving P into care or selling property, including justification of how the decision ultimately benefits P, and having obtained Court authority where necessary.
• Stay within your authority – it’s crucial to be sure that any actions documented in the report fall within your powers as granted by the Deputyship order. If you have taken action outside of those powers, you’ll need to explain why and may need to seek retrospective approval from the Court.
• Highlight safeguards – note any steps taken to prevent financial abuse or manage risks. This includes things like setting spending limits, using separate bank accounts or conducting regular reviews.
• Submit on time – reports are due annually as standard – so note the deadline, plan accordingly and send it in promptly to avoid enforcement action.
• Gather supporting documentation – include attachments such as bank statements or other reports or assessments if requested, or if they will help provide context for complex issues.

Refer to the OPG’s Deputy Standards

• These are readily available online via the gov.uk website.

Know when to bring in the experts

While lay deputies are not expected to be financial experts, seeking professional guidance can be beneficial – particularly when the financial matters in question become complex or contentious.

Price Slater Gawne’s friendly and experienced team can assist with the managing and reporting duties of a lay Deputy, working alongside you (and any other professional partners instructed to assist you) to ensure that your obligations are met.

If you’re looking for professional, personalised support on how to fulfil your Court of Protection requirements, our legal experts are here to give you the hands-on guidance you need.

Contact our Court of Protection team today at cop@psg-law.co.uk, or call 03333 058 375, to get in touch with one of our specialists to discuss your requirements. We’re here to help.