What really is ‘The Court of Protection’ and why is it something I should be aware of?

The Court of Protection and its powers is an area I am advising clients on more and more.  I was recently asked to dispel some common urban myths surrounding the Court of Protection for the benefit of my colleagues, and I realised that there were no urban myths because the Court of Protection was not common knowledge.

I find this is the problem when speaking to my clients; they are not aware of the Court’s existence, and if they are, they were not aware of when they may need to apply to it.

Lasting Powers of Attorneys are becoming ever more commonly made, and thanks to Martin Lewis, the majority of people seem to have a good idea of what they are and when you may need one. As a comparison, Lasting Powers of Attorney are like the ‘little brother’ of The Court of Protection, in that they are quite similar, but have a few major differences.

What is The Court of Protection?

It is a Court in which decisions are made on behalf of vulnerable people. These decisions may include appointing someone to make ongoing decisions for the vulnerable person (called Deputyship) such as withdrawing and investing money. They make one-off decisions, for example, giving authority for the sale of a property, and they also make decisions depriving a vulnerable person of their liberty under the Mental Capacity Act. This list is by no means exhaustive, but gives a good idea of their work.

When may I need to apply to the Court of Protection?

The most common application that we undergo at Lawson-West is an application for Deputyship (that is, for someone to appoint themselves to make day to day decisions for the vulnerable person). This is similar to being the person’s attorney.

This is the most common, as it is usually required when a person does not have a valid Lasting Power of Attorney and they have gone on to lose mental capacity regarding their financial decisions, so are unable to pay for their outgoings.

How is a Court of Protection Deputyship different to a Lasting Power of Attorney?

You will commonly hear the cost element mentioned first when talking about the Court of Protection, as it is much more expensive than preparing a Lasting Power of Attorney. However, the Court of Protection provides high levels of security for the vulnerable person through stringent reporting rules, and so this may be a consideration for you when deciding whether you are prepared to become a Deputy for a loved one, or if deciding whether a Lasting Power of Attorney is for you.

	Lasting Power of Attorney (Property and Finance)	Court of Protection
Initial Costs	£420.00 (inc. VAT)	£1,140.00 (inc. VAT)
Court Fee	£82.00	£400.00
Doctors Fee	Only applicable if there is a doubt regarding Mental Capacity	£100.00 - £200.00
Insurance for the Attorney / Deputy	N/A	Dependant on the value of the vulnerable persons estate
Ongoing Fees	No	Yes
Court Supervision	No	Yes
Annual Reports required	No	Yes
Average Time to prepare	2 months (to include registration)	6 months

If you wish to find out more about the Court of Protection, or Lasting Powers of Attorney, please contact a member of our specialist Planning, Protection and Probate department on 0116 212 1000 / 01858 445 480.

They can meet with you at our offices in Leicester, Wigston and Market Harborough. Home and hospital visits are also available.

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