Receiverships
What is a Receivership?
If a person (the ‘Patient’) lacks metal capacity to administer their own affairs, an application may be made to the Court of Protection (the ‘Court’) for an Order for Receivership. An Order for Receivership ensures the proper management and property and affairs of the Patient for their benefit, or for their family members by a person appointed by the Court. This may include matters such as;
- The sale or purchase of any property for the Patient;
- The making of a statutory will for the Patient;
- The conduct of legal proceedings in the name of the Patient, or on their behalf; or
- The investment of property and/or finances for the Patient.
What types of order can the Court make?
There are four types of order available to the Court of Protection;
1) Emergency Order;
2) Interim Order;
3) Short Order;
4) Order for Receivership.
Emergency Order
An Emergency Order may be made by the Court if there is urgent action needing to be taken on behalf of a Patient, for example to prevent the Patient being removed from their home. This type of order addresses a specific situation and is limited.
Interim Order
An Interim Order is similar to an Emergency Order but is more likely to be used to allow a person, who has applied to become a Receiver, to manage the affairs of the Patient on a limited basis whilst a substantial application is dealt with. For example, if the applicant has identified that a Patient needs assistance and makes an application for an Order for Receivership but whilst the application is being processed the applicant requires authority to pay household bills, insurance etc.
Short Order
A Short order may be made by the Court if the estate of the patient does not exceed £16,000 or the court otherwise decides it is appropriate. A Short Order differs as an officer of the court, or some other suitable person, is given limited authorisation to deal with the property and affairs as specified in the Order.
Order for Receivership
An Order for Receivership appoints a Receiver and usually lasts for an annual period with a ‘roll-over’ on the anniversary of the first Order for Receivership. Before an Order is renewed, the Court will review the annual accounts of the Receiver for the Patient and may also require medical evidence that the Order is still required. An Order for Receivership may be tailored by the Court to meet the needs of the Patient.
For more information please see the below guide:
COPGN A guide to Receiverships
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