ADM and Ward of Court transitions — what families need to know

For families who have had a loved one under the Ward of Court system, the arrival of the Assisted Decision-Making (Capacity) Act 2015 — now fully commenced — represents a significant change. The old wardship system, which dated back to the nineteenth century, has been replaced by a new framework built on a very different set of principles. For many families, the transition raises practical questions about what happens next, particularly regarding finances and financial planning.

This article sets out the key features of the new regime, what the transition means in practice, and why financial planning plays an important role in ensuring that the person concerned is properly supported going forward.

The old system and why it changed

Under the wardship system, a person who was found to lack capacity was made a Ward of Court. The court then assumed full legal control over that person's affairs — including their financial affairs — with a Committee typically appointed to manage day-to-day matters on the ward's behalf. The process was paternalistic by design: the assumption was that the person lacked capacity entirely, and that decisions should be made for them rather than with them.

The Assisted Decision-Making (Capacity) Act replaces this with a framework based on a fundamentally different principle: that capacity is not binary, that it can vary depending on the decision and the circumstances, and that the goal should be to support a person's decision-making rather than to substitute it wherever possible.

The new framework — key concepts

The Act establishes a spectrum of supports, ranging from relatively light-touch arrangements to full decision-making representation for those with the most significant needs. The three main tiers are:

Decision-making assistance — for people who can make their own decisions but need support to understand information or communicate their wishes. A Decision-Making Assistant is appointed to help, but makes no decisions on the person's behalf.

Co-decision-making — for people who can participate meaningfully in decisions but need another person to make those decisions jointly with them. A Co-Decision-Maker is appointed and must act together with the person.

Decision-making representation — for people with the most significant support needs, where a Decision-Making Representative is appointed to make certain decisions on the person's behalf. This is the closest equivalent to the old wardship arrangement, but with significantly stronger safeguards and a greater emphasis on the person's will and preferences.

The Decision Support Service, a new statutory body, oversees the registration of these arrangements and monitors how they operate in practice.

“The new framework does not simply replace one set of paperwork with another. It requires a genuine reassessment of what support is needed — and that reassessment has direct implications for how finances are managed.”

What the transition means for existing wards

Existing wards of court are being transitioned to the new framework over a phased period. The transition does not happen automatically — it requires an application to the courts and, in most cases, a review of the person's current situation and support needs. Solicitors who specialise in this area are guiding families through the process, and the timelines involved can be significant.

For families, the transition is an opportunity to reconsider the arrangements that have been in place, often for many years, and to ensure that they remain appropriate. In some cases, the level of support required may have changed. In others, the financial arrangements that were put in place under the old regime — investments, insurance policies, cash holdings — may need to be reviewed in light of the person's current circumstances and needs.

The financial planning dimension

This is where financial planning becomes directly relevant. In many wardship situations, the financial assets of the ward have been managed conservatively — often held largely in cash or low-risk investments, with limited strategic planning. This is understandable given the constraints of the old system, but it means that there are frequently opportunities to improve the management of those assets in a way that better serves the person's long-term interests.

Under the new framework, the emphasis on the person's will and preferences means that financial planning should be approached with a clearer understanding of what kind of life the person wants to live — and what financial resources will be needed to support that life. This involves looking at income needs, care costs, housing, and the longer-term management of any capital that has accumulated.

Where a Decision-Making Representative is managing finances on behalf of the person, they have a legal obligation to act in that person's best interests and in accordance with their known will and preferences. A clear financial plan — reviewed regularly and adjusted as circumstances change — is an important part of discharging that responsibility properly.

Working with solicitors and families

At Northstar, we work directly with solicitors and families navigating this transition. Our role is to provide independent financial planning advice that ensures the financial arrangements in place are appropriate, well-structured, and genuinely in the interest of the person concerned. We have a clear compliance process for these cases and understand the specific requirements that apply.

If you are a solicitor advising families through the ADM transition, or a family member who has taken on a co-decision-making or representative role, we are happy to discuss how we can support you. The financial planning element of these cases is often overlooked until quite late in the process — but getting it right from the outset makes a significant difference.

This article is for information purposes only and does not constitute legal or financial advice. The Assisted Decision-Making (Capacity) Act 2015 is complex legislation. Always seek qualified legal advice in relation to specific situations.