The assets of Europe’s wealthiest woman, Liliane Bettancourt, were today placed under the control of two of her grandchildren, whilst her personal affairs are to be supervised by just one of them. A French court ruled the 88-year old L’Oreal heiress, who has reportedly been diagnosed with Alzheimer’s disease and dementia, no longer has the mental ability to manage her finances. This is the latest episode in a four year family feud and Mme Bettancourt’s lawyers are appealing the decision. At stake is the management of more than €16billion.
A similar situation could happen under English law. Here we have the Court of Protection which determines whether or not a person has the faculties to make their own decisions. If they cannot the judge appoints a Deputy to manage their affairs; mirroring the way that Mme Battencourt’s 25-year old grandson Jean-Victor Meyers has been appointed her guardian. The Court hears evidence from doctors and interested parties, which are typically close relatives. The judge uses that evidence to decide what the Deputy is authorised to do and how closely they should be supervised.
This process can take weeks, if not months and is costly. Once appointed the Deputy must report to the Court regularly and be supervised by representatives of the Office of the Public Guardian. If the Deputy needs to act outside of their given authority a further Court application is required.
Yet this process can be avoided. The Court of Protection should be a last resort if no other arrangements can be put in place. A Lasting Power of Attorney is usually the best alternative. This document allows a person to appoint one or more individuals to manage their affairs if they become incapable. There are two types of Lasting Power of Attorney. One deals with health and welfare matters, while the more common form manages legal and financial affairs. Neither requires official supervision. The person drawing up the document can simply decide who should be their attorney, and what powers they should have.
The legal fees of this argument may mean nothing to the Bettancourt family, but for most people a court application is an expensive option. A Lasting Power of Attorney can save time and expense. It also protects a person’s right to choose who should manage their affairs, instead of letting a judge take the decision for them.
By Fiona Dodd
