Helping your ageing parents manage their finances is a practical, emotional, and sometimes legal challenge.

We’ve seen so many of our SFP clients step in to help their parents with the best intentions, paying bills, running errands, speaking to banks, only to discover that, without the proper legal authority, they may be limited in how helpful they can be.

A Power of Attorney (POA) is a good starting point, but it comes with conditions. It only works while your parent is mentally competent. The moment dementia, Alzheimer’s, or any form of cognitive decline is diagnosed, a POA becomes invalid.

You can no longer legally act on their behalf, even if you’ve always handled everything for them.

So what then?

At that point, options narrow and tend to become more complex. You may need to apply for curatorship via the High Court (costly and time-consuming), or opt for an Administration Order under the Mental Health Act (cheaper, but more limited in scope).

The key takeaway? It’s better to prepare before things deteriorate. Setting up a trust while your parents are still competent can offer flexibility, dignity, and peace of mind. Talk to one of our financial advisors early, while it’s still a conversation, not a crisis.