Receivership: Taking Care of the Affairs of a Mentally Disabled Individual
For a person struggling with memory or comprehension, owing to a mental condition, it is vital for someone to administer their affairs. An enduring power of attorney might have been excellent planning for these circumstances, but it may be too late for an individual to grant a power of attorney if they are already losing capacity. In those cases, someone may need to apply to the Court to be appointed as Receiver for the individual concerned.
The appointment of a receiver is less desirable in many ways than the grant of an enduring power of attorney:
The appointment of a receiver, and their ongoing supervision, is far more costly and time consuming than for an enduring power of attorney.
The individual will not have had a chance to choose a receiver, wherever they are resident.
The appointment of two or more receivers is not likely to be approved by the court.
The court also leans against appointment of receivers who are resident outside the Isle of Man.
To apply for a receivership order, application must be made to the court (including a fee). Full details of the incapacitated individual (the patient) must be provided, including the patient’s relationship with the applicant. The court will require a copy of the patient’s will, details of their assets, liabilities and documentary evidence to support the application.
The patient will also have to undergo a proper medical examination by a suitably qualified medical practitioner. The medical practitioner will need to provide a certificate confirming the extent of the patient’s incapacity.
The incapacitated person, and close relatives will usually be notified of the pending application to appoint the receiver. The notified persons can object, or confirm they agree to the issuance of an order appointing the named receiver for the patient.
Once granted the receivership order grants authority to the receiver, according to its terms. The law then imposes ongoing obligations and reporting requirements on the receiver. Unless an exemption is applied for, these will include requirements to keep fully detailed records, and to submit annual reports and accounts.
A receiver will be entitled to out of pocket expenses, but remuneration of a paid receiver will have first to be agreed with the court.
How we can help
Advocate John Rimmer can help navigate the process of becoming and acting as a receiver.
We provide guidance on the legal issues you may face. We can help prepare applications to the court, and complete the receiver’s accounts. For high value receiverships we can set up systems and control procedures to ensure the assets of the patient are managed effectively, and the receiver’s duties fully complied with.
Please contact:
John Rimmer
Hollie Ranscombe
Ilsa Reeves
Tel: +44 (0)1624 621466
Address: Fort Anne, South Quay, Douglas, Isle of Man, IM1 5DP