Mental Capacity Assessment
Clear, independent evidence of capacity to manage finances
A capacity to manage finances assessment is an independent assessment of whether a person can make decisions about their own money, property and financial affairs, such as bank accounts, bills, income, savings and spending, applying the two-stage test in the Mental Capacity Act 2005. Nellie Supports provides these assessments across England and Wales through a permanent full-time multidisciplinary team, with every report peer reviewed before delivery.
Decision-specific, peer reviewed and accepted by banks, solicitors and the Court of Protection. Report in 5 working days from the assessment visit.
At a glance
Decision
Managing finances and property
Legal framework
Mental Capacity Act 2005
Format
Face to face or remote
Report
Court-ready and peer reviewed
Coverage
England and Wales
£600 + VAT
Standard fee, stated before instruction
5 working days
Turnaround from assessment visit
England and Wales
Nationwide coverage
Peer reviewed
Every report checked by a second professional
Plain-English explanation
What is a mental capacity assessment?
A mental capacity assessment is a decision-specific and time-specific process used to determine whether a person can make a particular decision for themselves. Under the Mental Capacity Act 2005, the assessor considers whether the person can understand, retain, use or weigh the relevant information, and communicate their decision. A person can only be found to lack capacity where an impairment of, or disturbance in, the functioning of the mind or brain causes their inability to decide. It is not a general test of intelligence, memory or diagnosis, and every practicable step must first be taken to support the person to make the decision.
The decision might concern day-to-day money management, control of bank accounts, paying bills, budgeting, investments, property, a significant payment or another defined financial matter.
Capacity can differ between decisions. A person may be able to manage routine spending but not understand a complex investment or high-value transaction.
An unwise decision is not the same as lacking capacity
The assessor does not decide whether the person is making the best choice. The issue is whether the person can make the relevant decision, not whether others agree with it.
Common situations
When is a capacity to manage finances assessment needed?
Concerns about financial capacity usually arise when illness, injury or a change in behaviour raises doubt about whether someone can safely manage their own money. Families, solicitors, deputies, attorneys, banks and local authorities instruct this assessment when a Lasting Power of Attorney or deputyship application is being considered, when a bank or financial institution has questioned a customer's decision-making, when there are safeguarding concerns about financial exploitation, or when a dispute about someone's financial decisions needs independent evidence to resolve it.
Capacity is decision-specific. A person may manage everyday spending confidently while being unable to manage complex property and financial affairs, and the reverse can also be true. A formal assessment establishes precisely what the person can and cannot decide for themselves, so that any support put in place is no more restrictive than it needs to be.
Court of Protection application
A COP3 or supporting report is required for a property and affairs application.
Concerns about vulnerability
There are concerns about exploitation, scams, coercion, undue influence or financial abuse.
Banking or account access
A bank, solicitor, deputy or family member needs evidence about a specific banking decision.
Complex finances
The person must decide about investments, a large payment, debt, property or another high-value issue.
Disputed decision
Professionals or relatives disagree about whether the person can make the decision for themselves.
Change in circumstances
There has been a cognitive, neurological, psychiatric or functional change affecting financial decision-making.
Decision-specific content
What this assessment covers
This assessment addresses the person's capacity to manage their property and financial affairs, either in general or for the specific financial matters raising concern. It is decision-specific: the assessor tests the actual decisions in question, not a general impression. In line with the Mental Capacity Act 2005, the assessment considers whether the person can understand, retain, use or weigh the information relevant to those decisions, and communicate their choice. The information relevant to managing finances typically includes:
What money and property they have, including income, savings, accounts and any debts
Their regular outgoings, such as bills, rent or mortgage and everyday spending
How to keep track of money coming in and going out
What could happen if bills are not paid or money runs out
The risk of financial mistakes or exploitation, and how to get help safely
Who is affected by their financial decisions
The relevant information must be tailored
A routine budgeting decision is not the same as selling a property or transferring a large sum. The assessor identifies the information that is genuinely relevant to the decision in question.
1
The functional test
We apply the two-stage test in the Mental Capacity Act 2005 to the specific financial decisions in question. The functional test asks whether the person can:
Understand the information relevant to managing their finances, such as their accounts, income, outgoings and property
Retain that information long enough to make the decision
Use or weigh that information as part of making the decision
Communicate their decision by any means
2
Impairment and causation
Where the person cannot do one or more of these, the assessor considers whether that inability is caused by an impairment of, or disturbance in, the functioning of the mind or brain. The law requires a clear causal link between the impairment and the inability. A diagnosis alone does not mean a person lacks capacity, and no formal diagnosis is required for the test to be applied.
Key authorities: Mental Capacity Act 2005 ss 1 to 3; A Local Authority v JB [2021] UKSC 52; Re Beaney [1978] 1 WLR 770.
For the framework in full, read our guide: what is capacity to manage finances.
Legal framework
The legal test we apply
Enquiry and scoping
We identify the specific financial decisions in question, the circumstances and any deadline, and confirm the scope in writing before instruction.
Records and background
We review the relevant background, which may include medical records, financial context, prior assessments and any safeguarding or legal correspondence, so the assessment reflects the person's real circumstances.
The assessment visit
A qualified assessor meets the person at home, in a care setting, in hospital or remotely, using real examples from their own finances where possible and taking practicable steps to support their decision-making.
Peer review
A second qualified professional reviews the report for reasoning, evidence and structure before it leaves the practice.
Report delivery
Your report is delivered securely within 5 working days of the assessment visit, with follow-up clarification available for families, solicitors and other instructing parties.
What happens next
What the assessment involves
Supported decision-making
How we support decision-making
The Mental Capacity Act 2005 requires that no one is treated as unable to make a decision unless all practicable steps to help them have been taken without success. That support is built into every assessment:
Plain language and real examples
Decisions are explained using the person's own circumstances and the decision actually in front of them, rather than abstract scenarios.
The right time and place
Appointments are arranged for when the person functions best, at home, in a care setting, in hospital or remotely.
A familiar person nearby
A relative, friend or carer can be close at hand where that reassures, while the assessment itself remains independent.
Communication adjustments
More time, information broken into stages, and written notes or aids where they help the person express a view.
Evidence base
Evidence we review
With consent, the assessor grounds the assessment in the person's real circumstances. For a financial capacity assessment this typically means reviewing:
Medical records
GP summaries, hospital letters and any information about diagnosis or treatment that bears on decision-making.
Financial records
Bank statements, bills, benefit letters and other papers that show how the person's finances actually run.
Legal documents
Any Lasting Power of Attorney, deputyship order or trust arrangement relevant to the decisions in question.
Previous assessments
Earlier capacity assessments, cognitive testing or social care assessments, where these exist.
Care and support records
Care plans and daily notes that describe how the person manages tasks day to day.
Accounts from people who know the person
Observations from family, friends and professionals about how money is managed in practice.
Deliverable
Inside a Nellie Supports report
Every report follows a structure a court, solicitor, bank or public body can scrutinise: evidence, analysis and conclusion in a traceable line.
Instruction and the specific decisions assessed
Documents and records reviewed
Relevant information for managing finances
Practicable steps taken to support decision-making
Assessment findings and observations
Analysis against the Mental Capacity Act 2005 test
Conclusion and professional opinion
Limitations, declarations and appendices
Assessment option | Suitable for | What is included |
|---|---|---|
Standard Assessment | Most financial capacity questions | Single decision-specific assessment visit; two-stage Mental Capacity Act 2005 test applied in full; court-facing report structure; peer review by a second qualified professional |
Enhanced Assessment (EMCA) | Contested, high-value or high-risk matters | Two-stage assessment process; extended psychometric input; structured vulnerability and undue influence enquiry; Care Act informed needs analysis; detailed psychometric appendix |
Court-specific instruction | Court of Protection or other proceedings | Required form, questions or expert-report structure agreed at instruction |
Who we work with
For solicitors, deputies and other professionals
Instruction is straightforward and the evidential standard is consistent whichever decision is being assessed:
Scope confirmed in writing
The decisions to be assessed, the fee and the timescale are confirmed in writing before instruction.
A traceable evidential line
Evidence, analysis and conclusion are set out in a structure a court, bank or public body can scrutinise.
Peer review as standard
A second qualified professional reviews every report before it leaves the practice.
Follow-up clarification
Clarification for instructing parties is included after the report is delivered.
Standard Assessment
£600 + VAT
- Single decision-specific assessment visit
- Two-stage Mental Capacity Act 2005 test applied in full
- Court-facing report structure
- Peer review by a second qualified professional
Suitable for most financial capacity questions.
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Enhanced Assessment (EMCA)
£3,500 + VAT
- Two-stage assessment process
- Extended psychometric input
- Structured vulnerability and undue influence enquiry
- Care Act informed needs analysis
- Detailed psychometric appendix
Designed for contested, high-value or high-risk matters.
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Transparent pricing
Standard or Enhanced assessment, which is right?
We offer two levels of financial capacity assessment, matched to the complexity of the situation and the level of legal risk. For most situations a standard assessment provides clear, proportionate and defensible evidence. Where the outcome is likely to be contested, or the sums and risks are high, the enhanced service adds depth and defensibility.
For families
A clear fee, stated before instruction and confirmed in writing, with VAT and any travel set out up front. The assessment is arranged around the person, at home, in a care setting, in hospital or remotely, and your report is delivered within 5 working days of the assessment visit, in a form banks, solicitors and the Court of Protection can rely on.
For professionals
A permanent, employed multidisciplinary team, not an ad hoc associate or referral-panel model: Social Work England and Social Care Wales registered social workers and a Chartered Psychologist (BPS). Every report is peer reviewed by a second qualified professional and structured for scrutiny, with reports relied on in the Court of Protection, the Family Court and the Court of Appeal.
Provider evidence
Why choose Nellie Supports for your mental capacity assessment
England and Wales' largest identified specialist private social work and mental capacity assessment practice, with over 11,000 formal assessments and reports completed by a permanent full-time multidisciplinary team.
Why instruct Nellie Supports
Employed, not outsourced
A permanent full-time multidisciplinary team, not an ad hoc associate, contractor or referral-panel model.
Over 11,000 assessments
Formal assessments and reports completed across England and Wales.
Peer review as standard
Every report is reviewed by a second qualified professional before delivery.
Registered professionals
Social Work England and Social Care Wales registered social workers and a Chartered Psychologist (BPS).
Court-facing structure
Reports relied on in the Court of Protection, the Family Court and the Court of Appeal.
Independence
An independent opinion with no stake in the outcome, which is exactly what gives the evidence its value.
The situation
Miss T. held Lasting Power of Attorney for her mother. The LPA had been drafted so that it would only take effect when her mother lost capacity, which meant the attorney needed formal evidence that her mother could no longer manage her own finances before banks and other organisations would recognise her authority.
The barrier
Miss T. first approached her mother's GP, who confirmed they had observed some memory decline but declined to provide a formal capacity report, explaining that they did not carry out decision-specific assessments for LPA activation. She was advised to contact the local authority, but their adult social care team explained they could only assess in safeguarding cases or where statutory intervention was required, not for private LPA evidence.
How Nellie Supports helped
Facing pressure from banks and local authorities requesting proof before they would recognise her legal authority, Miss T. contacted Nellie Supports. The same day, our assessment coordinator gathered the background details, reviewed the LPA terms and obtained her mother's consent to be assessed. A registered social worker then completed a decision-specific assessment of her mother's capacity to manage her property and financial affairs, applying the two-stage test in the Mental Capacity Act 2005.
Why it mattered
This case demonstrates how private, court-compliant capacity assessments can bridge the gap when statutory services are unable to assist. For attorneys under LPAs that only take effect on loss of capacity, timely, functional evidence is essential to avoid financial risk and administrative deadlock.
Details have been changed to protect confidentiality and shared with consent.
How this works in practice
Frequently asked questions
Frequently asked questions
How quickly will we receive the report?
Your report is delivered within 5 working days of the assessment visit. If your matter is urgent, tell us at the enquiry stage and we will advise on the earliest available appointment.
Can our GP not do this?
GPs can assess capacity but rarely have the time for a decision-specific financial assessment, and the Mental Capacity Act 2005 does not require the assessor to be a doctor. Our assessors carry out and record decision-specific assessments to court expectations every week, using real examples from the person's own finances.
Does the person need a formal diagnosis?
No. The two-stage test requires evidence of an impairment of, or disturbance in, the functioning of the mind or brain, which may be permanent or temporary, but a formal medical diagnosis is not required. What matters is whether an impairment is the reason the person cannot make the specific decision.
Can someone have capacity for some financial decisions but not others?
Yes, and this is common. A person may manage everyday spending, bills and small purchases confidently while lacking capacity for complex decisions about property, investments or large sums. Our report addresses the specific decisions in question rather than giving a single blanket answer.
What happens if the assessment finds the person lacks capacity?
The report sets out exactly which decisions the person cannot make and why, which is the evidence typically needed for the next step, such as registering a Lasting Power of Attorney or applying to the Court of Protection for a deputyship. We can also carry out the COP3 assessment a deputyship application requires.
What if the answer is not what we hoped?
Our opinion is independent, and that independence is what makes the report worth having. A report that could only ever say yes would be worthless to a court, a bank or your family. We explain our reasoning clearly whatever the conclusion.
Where do you cover?
Assessments are carried out across England and Wales, at home, in care settings, in hospital or remotely where appropriate. Travel is charged at £40 per hour and confirmed before booking.
Who will carry out the assessment?
A registered professional from our permanent, employed team, which includes Social Work England and Social Care Wales registered social workers and a Chartered Psychologist (BPS). Every report is peer reviewed by a second qualified professional before delivery.
What is capacity to manage finances?
The decision, the legal test and who assesses it
Everyday money decisions versus complex financial decisions
Why capacity can differ between small and large decisions
Questions asked in a financial capacity assessment
What the assessor covers and why
Capacity to manage bank accounts, bills and savings
The everyday decisions banks and families ask about
Evidence that supports a financial capacity report
What strengthens the assessment and the report
Supporting guidance
Guides that support this assessment
Capacity to buy, sell or transfer property
For a specific property decision, such as selling a home, buying, transferring or gifting.
Capacity to grant a Lasting Power of Attorney
Where the question is making an LPA, not day-to-day finances.
COP3 mental capacity assessment
For Court of Protection deputyship applications.
Other assessment types
Discuss the instruction
Arrange a capacity to manage finances assessment
Tell us about the decisions that need assessing and we will confirm the right assessment, the fee and the earliest appointment.
Written by Ben Slater, Founder and Managing Director, Nellie Supports. Read our editorial policy.