Dementia Support Line
Support with managing your money
As your dementia progresses, you may find that you need more support with managing your money. It can help to discuss your finances with someone you trust and start planning for the future together.
- Managing money as a person with dementia
- You are here: Support with managing your money
- Managing finances for people with dementia
How to get the right support
You might find that while you manage some things yourself easily, you start to need help with other tasks. An example could be that you can manage your weekly expenses, such as shopping, but struggle to keep track of any investments or savings you have.
Asking someone you trust to go through your bank account with you or check payments can be a huge help. You could ask them to help you get all your financial information in order so that you know where everything is. There are also more formal ways that you can get support from someone else, these are listed below.
Joint bank accounts
A joint account can be a useful way of getting some support with managing your money if you have dementia. This is because there is another person there alongside you. They should be someone you trust.
As your dementia progresses, you’ll find it more difficult to keep track of the joint account or give your consent to payments and withdrawals. It is important to think about whether a joint account is the best thing for you.
Some joint accounts allow each account holder to make payments and withdraw money without the other account holder(s) needing to sign or agree. Other joint accounts need all the account holders to sign or agree.
Some banks won’t allow a joint bank account to continue if one of the account holders loses the ability to manage it. This ability is sometimes called ‘mental capacity’, or just ‘capacity’. If this happens, the bank may stop or ‘freeze’ your account until someone has the legal power to act on your behalf. This would usually be someone with either: a Lasting or Enduring power of attorney or a deputyship order, or a controllership order (in Northern Ireland). You can read more about these options below.
If a bank knows that someone is acting as your attorney, deputy or controller, they will usually want you to have your own bank account. If you are thinking of appointing someone to act as your attorney, talk to your bank.
Third party mandate
If you have your own bank account but you would like someone to help you manage it, such as a close friend or family member, ask your bank for a ‘third party mandate’. This allows someone else to make payments from your account, see what is happening in your account and manage it for you.
Think carefully about who you ask to do this, it should be someone you know well and trust.
Some banks can include limits on third party mandates, such as limits on the value of payments. A third party mandate is only valid while you have mental capacity to manage your own account. If you lose that ability, the mandate will stop and the person will no longer be able to help you with your account.
Carer’s cards
Some banks will offer a ‘carer’s card’. These can sometimes have another name such a ‘trusted person’s card’. This is a debit card that you can give to someone you trust so that they can have limited access to your money. This might be useful if you want them to do shopping for you, get cash out for you or pay some bills.
A carer’s card will not usually allow the person to see what is in your account or do certain things like paying online or over the phone. You will control how much the person can spend. A carer’s card will only be valid while you still have the mental capacity to manage your account yourself.
Talk to your bank if you think a carer’s card might be useful for you. How each card works will be slightly different depending on the bank.
Managing your money booklet
This booklet is full of information and ideas for making it easier to manage your money for as long as you can.
Managing your money in the future
As your dementia progresses, you may find that managing your money becomes more difficult. There may come a time when you need someone to make financial decisions for you.
A power of attorney is a legal tool that allows you to appoint someone (the ‘attorney’) to do this. They should be someone you trust to do what is best for you, and to think about your wishes and needs.
Dementia is progressive, so it will become more difficult for you to make plans and decisions over time. A Lasting or Enduring power of attorney can be used after you lose mental capacity to manage your money, but you do need to have mental capacity to make one. It's therefore a good idea to start thinking about making a power of attorney as soon as you can.
Managing your money without a power of attorney
If you don’t make an LPA or EPA and you become unable to manage your money, there may be a time when no one can legally do that for you. This can make it difficult to do things like pay your bills and care costs or sell your house. If this happens, someone may need to apply to the Court of Protection to become your deputy. This person could be a family member or partner. If you are in Northern Ireland, the person would need to apply to the Office of Care and Protection to become your controller.
The processes to set up a controller or deputy can take longer and be more expensive than making an LPA or EPA. It is important to know that you will not get to choose who will be the controller or deputy. The court will choose who to appoint, but you will be able to tell the court your views on who is asking to be appointed if you are able to give them.
You may not need a deputy or controller if you have no property or savings and your only income comes from benefits. If this is the case, an 'appointee' can be appointed instead.
Soon after diagnosis, me and my daughters sat down and wrote my Lasting power of attorney. Yes, it was a difficult conversation, but at least I now know my daughters won’t have to make those difficult emotional decisions in the future as they’re now filed safely away until needed.
– Younger person with dementia
Planning for the future when living with dementia
Planning for the future as a person living with dementia can sometimes be difficult to think about, but it ensures your wishes are followed.
If you become unable to manage your own money and you are receiving benefits, someone else can manage your income from benefits for you. This is called acting as an ‘appointee’.
It only applies to benefits, not to any other money you might have. Your other money will need to be managed by an attorney under an LPA or EPA or by a deputy or controller.
An appointee is usually a relative who lives with you or visits often, or a trusted friend or neighbour. They will need to apply to the Department for Work and Pensions (DWP) for permission to be your appointee. If you live in Northern Ireland they would apply to the Department for Communities.
You won't need an appointee if you have made a Lasting or Enduring power of attorney or have a deputy or controller. This is because the attorney, deputy or controller can manage the income you get from benefits as well as your other money.