As parents, you pour your heart into protecting, nurturing and advocating for your child. Looking after a disabled child or with additional needs that impact their independence or decision‑making is complex. This can be especially so as adulthood approaches. This guide aims to give you clarity, reduce worry and help you plan practical next steps that honour your child’s wishes and safeguard their future.

In England and Wales, the law assumes that people aged 18 and older make their own decisions about health, care, education, and finances. This is unless they lack mental capacity for the specific decision in question.

Between ages 16 and 18, there is a gradual shift. Some Mental Capacity Act 2005 (MCA) provisions apply to 16–17‑year‑olds. Children under 16 usually remain under parental responsibility.

Because every child’s needs and abilities are different, the right approach is always context‑specific.

As your child nears adulthood, think about three pillars of protection:

• Decision‑making authority. Either Lasting Powers of Attorneys (LPAs) or Deputyship
• Financial security. Wills and Trusts
• Day‑to‑day management, such as appointeeship for benefits.

SMA does not usually affect cognitive ability. But sometimes fatigue, respiratory illness or communication barriers may affect decision‑making. Capacity is not a ‘one fits all approach’, it is completely and utterly decision and time specific.

From age 18, your child is an adult in the eyes of the law. If they have capacity, they can give you authority in advance using:

Lasting Powers of Attorney (LPAs):

• Health & Welfare LPA. This lets trusted people decide about care, living arrangements and medical treatment. But this can only happen if your child cannot decide at the time.
• Property & Financial Affairs LPA. This lets trusted people help with money, benefits, bank accounts and property. With your child’s permission it can be used once registered. It continues if they later lose capacity.

If your child does not have capacity to make LPAs, apply to the Court of Protection for:

Deputyship:

• Property & Financial Affairs Deputyship (PFAD). This is for managing money, benefits and property.

• Personal Welfare Deputyship (PWD). This is rarer. It is granted where welfare decisions cannot be made safely by collaboration. For example, if there are ongoing disputes or a series of serious medical decisions.

If your adult child can’t deal with benefits, you can become a DWP appointee. This means payments are received and used for their needs. For short, specific tasks such as accessing one account while your child is in hospital, some banks accept a third‑party mandate. For long‑term resilience where capacity is present, LPAs are best.  Where capacity isn’t present, Deputyship ensures decisions can still be made lawfully.

A Will lets you appoint guardians for children under 18. It set out gifts and decides how funds should support a vulnerable child into adulthood.

To help your child avoid issues with benefit eligibility and financial risk, think about placing their share in a trust.

Discretionary Trust

This is the most flexible. Trustees decide what to provide and when. As the Trustees make the decisions about when monies are paid, a beneficiary isn’t absolutely entitled to them. This means that funds are usually ignored for means‑tested support.

Disabled Person’s Trust

This offers similar flexibility but offers preferential tax treatment if your child meets the statutory disability criteria. It can still allow modest payments to others where that indirectly benefits your child. For example, a carer’s travel to accompany them.

• Pick people who are reliable, organised and collaborative.
• Consider a blend of family and at least one independent person.
• Use a Letter of Wishes to guide trustees about priorities. For example, it can include information about comfort, therapies, interests and social inclusion but can allow for keeping flexibility for changing needs.

You do not have to do everything at once. Start with the step that feels most useful now. This might be reviewing your Will, exploring LPAs or talking with loved ones about trustees and guardians. Revisit your plans regularly as your child’s needs evolve.

An LPA is a legal document that someone aged 18 or over makes while they have the mental capacity to do so. It appoints trusted people (attorneys) to act if help is needed. Applications are registered with the Office of the Public Guardian (OPG). There is a registration fee for each LPA. It may be possible to have the fee reduced. This is means tested.

Two types of LPA work side‑by‑side:

Health & Welfare LPA

Attorneys can make decisions about:

• daily routines
• care and living arrangements
• medical treatment.

If expressly authorised, it can include decisions about life‑sustaining treatment.

Property & Financial Affairs LPA

Attorneys may manage money and property such as:

• paying bills and rent
• dealing with benefits
• opening or closing bank accounts
• overseeing investments
• selling a home if needed.

Attorneys can be appointed to act:

• jointly – always together or
• jointly and severally – together or individually or
• a mix of both for different decisions.

Thinking about family dynamics, who has time and the right skills helps you choose the right structure.

If you are uncertain about a young adult’s capacity to understand an LPA, seek professional advice. Capacity is both decision and time specific. It can fluctuate.

Questions parents often ask include:

• whether to set up LPAs soon after a child turns 18
• whether a young person understands the nature and effect of the documents
• whether parents themselves should make LPAs to protect the family if something happens to them
• who would handle the family business or household finances if a decision‑maker were suddenly unavailable?

If a young adult cannot understand an LPA due to lack of capacity, you may need to apply to the Court of Protection (COP) for a Deputyship Order. A deputy is authorised to make decisions in the person’s best interests. They are supervised by the Office of the Public Guardian (OPG).

Property & Financial Affairs Deputyship (PFAD)

This allows deputies to manage:

• bank accounts
• benefits and property
• buying or selling a home.

Personal Welfare Deputyship (PWD)

This covers decisions about care, living arrangements and sometimes serious medical treatment.

PWDs are comparatively rare. The COP prefers collaborative decision‑making between families, health professionals and social care. It will appoint a welfare deputy only when essential. For example, where there are:

• ongoing disputes or
• a series of linked medical decisions over time or
• risks that cannot otherwise be managed.

A PFAD does not require prior permission from the Court of Protection to apply but a PWD usually does.

Applications involve detailed forms and, depending on circumstances, supporting evidence. For example, capacity assessments and care plans. The COP charges application fees, but you can apply for help with fees as part of the process.

For PFAD, the deputy must take out a security bond to protect the person from financial loss. The OPG then supervises the deputy, which can include reports and occasional visits.

In terms of best interests and safeguards, a deputy must:

• follow the Mental Capacity Act (MCA) and the terms of the COP order
• keep clear accounts and records
• act only in the person’s best interests.

Section 5 of the MCA protects people who carry out “acts in connection with care or treatment” when acting reasonably and in good faith. This includes family members. But it does not remove civil or criminal liability for negligence.

If a welfare deputyship is refused but key decisions still cannot be made safely, legal challenge routes may be available.

Why are welfare deputyships hard to get?

The COP must balance protection with autonomy. It is careful not to seem as if it extends parental responsibility beyond age 18, when young people can gain more independence.

It will look closely at evidence of the person’s wishes and feelings, family dynamics and whether less restrictive options can work.

Children under age 16

The Mental Capacity Act (MCA) generally does not apply to children under age 16. Parents with parental responsibility make decisions.

There is though an exception. The Court of Protection (COP) may make financial decisions for a child who lacks capacity now and is likely to continue lacking capacity after 18. If this does happen, that order continues into adulthood. Where a Property & Financial Affairs Deputyship (PFAD) cannot be made, decisions typically rest with those holding parental responsibility until age 16.

Young people age 16 – 17

Most of the Mental Capacity Act applies to young people aged 16–17. Capacity is assessed for each decision at the time it is needed.

There is a general presumption that a young person can consent to routine medical and dental treatment. Rarer or high‑risk procedures involve different tests and additional safeguards. For example, further spinal surgery.

If a young person who has capacity refuses treatment but someone with parental responsibility wants them to have it, the COP must decide.

Where the young person lacks capacity, a person with parental responsibility may give consent. However, disputes between families and professionals can still require COP input.

In all cases, the young person’s best interests are central, and their wishes and feelings are carefully considered.

Making a Will allows you to set out what you wish to happen when you die. This could include:

• who should care for children under 18. They would be called ‘guardians’
• how your estate should be used to support a vulnerable child through adulthood.

A Will also helps you to avoid any unintended effects on benefits. It ensures assets are managed by people you trust.

Parents often need to consider:

• complex family situations, for example, blended families, separation or divorce
• how these situations affect guardianship or the fairness of inheritances between siblings.

So they align with your Will and any trusts, it is wise to review any:

• pension nominations
• life insurance
• death‑in‑service benefits.

It is also wise to encourage grandparents or other relatives to take advice if they are thinking about making any gifts. Without taking advice, any gift may accidentally disrupt your child’s financial support.

A trust places assets under the control of trustees who manage them for beneficiaries.

Trusts for vulnerable children and adults can provide flexible support. They can do this while still protecting eligibility for means‑tested benefits. They can reduce risks of financial exploitation.

Trusts can be created during life or by Will.

Discretionary Trusts

Trustees have wide powers to decide when and how to apply income or capital.

No beneficiary has an automatic entitlement. Funds are generally not treated as the disabled person’s own assets for means‑testing.

This flexibility helps trustees adapt to changing needs, for example paying for:

• equipment
• therapies
• technology
• holidays
• respite.

Discretionary trusts do though create complexity when it comes to tax. They can be subject to ten‑year anniversary Inheritance Tax (IHT) checks and exit charges when assets leave the trust. They also often pay higher rates of Income Tax and Capital Gains Tax (CGT) than other structures.

Disabled Person’s Trusts.

These operate much like discretionary trusts. But if the primary beneficiary meets specific disability criteria they are taxed more favourably.

A person qualifies if, for example:

• they have a mental disorder under the Mental Health Act 1983 that makes them incapable of managing their affairs
• they receive, or qualify for:
  • Attendance Allowance
  • the care component of Disability Living Allowance at the higher or middle rate or
  • Personal Independence Payment at the standard or enhanced rate for daily living or mobility.

The crucial date for eligibility is when funds are added to the trust.

Trustees may make small payments to non‑disabled beneficiaries each tax year. These can be up to whichever is the lower amount of £3,000 or 3% of the trust’s maximum value. The payment must be for something which can indirectly benefit the disabled person.  For example, covering a carer’s travel so they can accompany them.

There are many complications when it comes to trusts and tax . These are the main points to note:

• Generally, if a Disabled Person’s Trust is set up during life and the trust qualifies, there is no lifetime IHT charge on creating it
• Gifts into the trust from a person’s Will are included in the deceased’s estate as usual
• On the disabled person’s death, assets still held for them form part of their estate for Inheritance Tax
• Unlike standard discretionary trusts, ten‑year and exit charges do not usually apply
• During the disabled person’s lifetime, trustees can use the full Capital Gains Tax (CGT) annual exemption
• When the disabled person dies there is a CGT uplift to date‑of‑death values on trust assets. This avoids a charge on earlier gains.

Which trust suits best?

A standard discretionary trust may be ideal when:

• flexibility for several family members is needed
• tax is not the primary concern.

A disabled person’s trust can be more suitable when the main focus is:

• the disabled beneficiary and
• tax efficiency matters.

Trustees carry long‑term responsibilities. You can appoint any number, but you will need at least two.  If land is involved, only the first four can be registered as owners at HM Land Registry.

For balance, it is often wise to include at least one independent trustee alongside family members who know your child’s needs well.

Even if you are a trustee yourself, you cannot control decisions or hold a casting vote. You instead need to give guidance in a Letter of Wishes. This is not legally binding, but trustees should take it seriously and update it as your child’s needs change.

Trustees must act impartially. Unless your trust deed allows majority decisions, they must also act unanimously. They must:

• keep the trust’s money separate from their own
• maintain detailed records
• invest prudently
• keep tax affairs up to date with HMRC.

Trusts can last up to 125 years. This makes it important to choose people who:

• collaborate well
• understand the commitment
• will seek advice when needed.

When a child becomes an adult, families no longer have automatic authority to manage their money or personal affairs. Depending on capacity and needs, there are several routes:

Appointeeship

This only applies to benefits. A parent or carer can apply to the Department of Work & Pensions (DWP) to receive and manage the adult’s benefits on their behalf. This can usually be done by a self declaration. This does not extend to bank accounts or other assets.

Bank mandates and General Powers of Attorney

These are for short‑term or specific tasks. For example, managing an account while someone is abroad or unwell. Banks can accept a third‑party mandate. Or the adult with capacity can grant a General Power of Attorney, but if they subsequently lose capacity then the power given under this type of document ceases.

Lasting Powers of Attorney

As outlined above, this is an excellent option when the adult has capacity to grant them. They provide continuity even if capacity later fluctuates or is lost.

Deputyship

Again, as discussed above, this is necessary when there is no LPA in place and the adult lacks capacity to make one. This ensures essential decisions can still be made lawfully and without any unnecessary delay.