Solicitor Control of Personal Funds

[NHAccountant]

Good morning

We are a care company, providing supported living services to individuals in a community environment, a lot of this support involves helping people with learning disabilities with their day to day lives.

A particular individual has a funds made available to them via a solicitor (we aren't aware of the original source or total size of the funds, nor is that relevant here), the solicitor has control over the release of these funds and wishes to make a regular amount available. Due to capacity issues, the individual doesn't have their own bank account so the solicitor wishes to transfer the funds to us and we would the give the cash to the individual.

This raises certain "logistical" issues for us, but the crux of my query is what is the obligation of the solicitor here? We aren't a personal banking service and there are care boundaries to observe, my understanding in these matters is that as the solicitor is acting as the trustee (at least in a practical sense, even if not officially) the onus is on them to establish an appropriate means of the individual having access to the money.

Thanks in advance.

 

[Newchodge]

I cannot see why you can't just say that you have neither the facilities not the staff to deal with this.

 

[Frank the Insurance guy]

the onus is on them to establish an appropriate means of the individual having access to the money.

This is why they have asked you @NHAccountant - they are trying to establish a means to get cash to the individual.

I would suggest you decline to assist and leave them to find another method.

If you do decide to assist, this opens up a whole lot of other issues
- you will then be holding 3rd party funds
- will you need a "trust" account for the individual
- you will need to let your Professional Indemnity Insurer know
- what would happen if the money goes "missing" or is stolen?

Probably safer and easier to not provide the service.

 

[Gyumri]

Somebody if not the solicitor presumably has an LPA for finances in regard to the person.

Perhaps you should have a chat with the solicitor to establish the best means of transferring pocket money to your chargee if that is the right word.

Then all concerned can benefit.

 

[NHAccountant]

Hi

Thank you.

The above issues are exactly why we don't want to/shouldn't do this. I appreciate that they have asked us to do this as they seem to believe this is appropriate, but without explaining the details of what our service provision constitutes, we don't take care of the individuals personal/private affairs, which is why (even if we had a trust account etc.) i don't feel the solicitors are doing what they should. We have explained our position to them but they are getting rather persistent that this is something we can/should do.

We aren't prepared to do it, but this issue isn't just about logistics of transferring and handling money. We support the individual and I'm trying to get a firm grasp on what the solicitor should actually be doing on behalf of the them so that our support is appropriate and complete. We can't get involved with the relationship between the individual and the solicitor, but we do support them so that they can manage these things for themselves and we need to ensure they are being treated fairly. Unfortunately the solicitor feels transferring the money to us is an appropriate method.

Thanks again

 

[Frank the Insurance guy]

we don't want to/shouldn't do this

Then don't!

we don't take care of the individuals personal/private affairs

Then don't!

they are getting rather persistent that this is something we can/should do

Let them get as persistent as they want - it's not your problem to solve.

We aren't prepared to do it

Then don't!

I'm trying to get a firm grasp on what the solicitor should actually be doing on behalf of the them

Perhaps this is the real question? I suspect the answer is that the solicitor has a duty to make sure the individual has cash on a regular basis. The issue is how do they achieve this. I think it is perfectly reasonable for the solicitor to ask you, as you are already involved with the individual. However they can not force you to do it, and as such they should look at alternatives. I have no idea what an alternative option would be though!

solicitor feels transferring the money to us is an appropriate method.

For the solicitor, of course it is an appropriate method - it ticks their box to enable cash to get to the individual. For you however this completely inappropriate.

 

[Newchodge]

Then don't!

Then don't!

Let them get as persistent as they want - it's not your problem to solve.

Then don't!

Perhaps this is the real question? I suspect the answer is that the solicitor has a duty to make sure the individual has cash on a regular basis. The issue is how do they achieve this. I think it is perfectly reasonable for the solicitor to ask you, as you are already involved with the individual. However they can not force you to do it, and as such they should look at alternatives. I have no idea what an alternative option would be though!

For the solicitor, of course it is an appropriate method - it ticks their box to enable cash to get to the individual. For you however this completely inappropriate.

How do other tenants access cash? Could they not give them a loadable cashcard that they can use at an ATM, without needing a bank? Or is the tenant not able to do that?

 

[Daybooks]

This is why they have asked you @NHAccountant - they are trying to establish a means to get cash to the individual.

I would suggest you decline to assist and leave them to find another method.

If you do decide to assist, this opens up a whole lot of other issues
- you will then be holding 3rd party funds
- will you need a "trust" account for the individual
- you will need to let your Professional Indemnity Insurer know
- what would happen if the money goes "missing" or is stolen?

Probably safer and easier to not provide the service.

I would agree. Generally holding client monies as this would amount to requires lots of hoops to be jumped through and separate client money accounts - all of which is probably not something you may want to embark on. The solicitor should be well aware of this. Now they may (and should) be far knowledgeable on this subject (as I specifically avoid doing it), so I would be inclined to ask the solicitor if you are legally able to do so or do they just consider it easier for them. Although they may charge you for that piece of information.

 

[WaveJumper]

I assume there are no family members in play here

 

[Alyson Dyer]

Suggest the solicitor refers the case to the Court of Protection

 

[Solvelaw]

My view is that if the solicitor is acting as trustee, which is little different when acting for someone albeit they are acting for someone benefit. If there is an issue which requires representation, I believe you could write to the official solicitor and ask for intervention.