IHTM28082 - Liabilities: investigating liabilities: costs of receiver/deputy for a person lacking capacity

This instruction applies to estates in England, Wales and Northern Ireland only.

The Mental Capacity Act 2005, which came fully into force on 1 October 2007 provides for a system of court appointed deputies to act as receivers for people who lack the capacity to look after their own affairs. When the person who lacks capacity dies the property in their estate ceases to be in the hands of the deputy. So you should not allow any deductions for costs for the deputy after the date of death.

Where a receiver was appointed before October 2007 this would have been done under the Mental Health Act 1983. People who were appointed as receivers before October 2007 kept their powers concerning property and affairs after 1 October 2007 and are now treated as deputies.

This legislation is enacted in Northern Ireland as Article 101(3) Mental Health (NI) Order 1986 except that in this case the receiver/deputy is called a controller.