Assessment of capacity for financial matters needs to consider the person’s ability to make decisions concerning their finances and property. Following Acquired Brain Injury it is important to consider how physical, cognitive and communicative impairments may impact upon their ability with regard to financial matters. It may also be important to consider psychological factors.

The assessor should consider the following:

  • Review the person’s understanding of their finances and their ability to manage within a budget.
  • Explore the person’s knowledge of his/her assets, income, expenses and financial dependents (if there are any).
  • If the person does not volunteer the information about significant aspects of their financial status, then gently prompt. If acknowledged, inquire at a later point to see if the information has been retained.
  • If assessing capacity for routine money management, it is reasonable to expect the person to show a basic awareness of their financial circumstances.
  • The person should also be able to show a basic understanding of how to use a bank card and be able to recall their PIN number.

 

Questions to ask the person may include the following:

  • Can you tell me something about your present financial situation?
  • Where do you get your money from?
  • Do you get benefits/salary/pension?
  • Do you know how much you get each week?
  • What household bills do you have to pay and how do you pay them?
  • Approximately, how much money do you need to set aside for bills each week/month?
  • Have you ever forgotten to pay your bills on time?
  • On average, how much do you spend on food per week?
  • Do you think you could be pressured into buying things that you don’t need or making loans or gifts you really shouldn’t because you find it hard to say ‘no’ or find it difficult to think things through?
  • Do you have some savings? If so, how much?
  • Do you own your own house?
  • Do you have any debts or do you sometimes find you have spent too much money too quickly (e.g. not enough money to last until next pension or benefit payment)?
  • Do you manage your finances without help?
  • Have you considered getting help from your family with your finances?

 

There may be a discrepancy between the person’s self-reported ability and their actual ability to manage their financial affairs in everyday life. The person may be unable to carry out necessary transactions in a responsible manner with regard to actual financial resources. Asking family members about the person’s current and previous ability to manage money is essential. Check the following out with a family member or carer:

  • Does the person have a basic understanding of money and its value (e.g. coin recognition and worth)?
  • Can the person decipher a bank statement?
  • Is the person able to estimate the approximate worth of their various assets (e.g. property)?
  • If managing large sums of money, can they appreciate the size of the estate in terms of purchasing power?
  • Are they able to identify when they are struggling with financial matters and are they able to communicate this effectively? Do they seek appropriate help and support where necessary?
  • Is there any evidence of a recent change in the person’s ability to manage their finances?
  • Can the person recognise situations of potential exploitation and respond accordingly?
  • Does the person face financial risks because of memory problems?
  • Can the person reconcile their perception of reality of financial management against objective evidence of difficulties?

 

 

Guidance

It is important to consider if the person can be helped to develop skills to manage their money e.g. understand regular weekly expenditure, interpret a bank statement, use a card/bank machine? If the person cannot be supported to develop the necessary skills to manage finances:

  • Establish whether appointing a power of attorney would be a suitable option.
  • If the person lacks capacity to appoint an attorney and there is evidence that they are unable to manage their financial affairs, it will be necessary to consider if Financial Guardianship is appropriate.

Please click on the links below for more information:

Scottish Government: Adults with Incapacity: Guide to Assessing Capacity

Mental Welfare Commission for Scotland Good Practice Guide: Money Matters