Financial capacity

Financial capacity is the ability to make decisions about money and property: to understand the nature and effect of those decisions, make them freely and voluntarily, and communicate them. That is consistent with the Powers of Attorney Act 1998 (Qld) and the Guardianship and Administration Act 2000 (Qld).

It can be asked in two ways. Generally: can this person manage their financial affairs, such that an administrator should or should not be appointed by QCAT. Or specifically: did this person have capacity for this transaction (a gift, a loan, a property transfer, a change of beneficiary).

The two questions are different. A person may be unable to manage a complex portfolio and fully able to decide to give a grandchild ten thousand dollars.

An older person's finances are usually the first thing that changes when cognition declines, and the first thing a family notices. It is also where financial abuse happens.

A QCAT application for an administrator needs medical evidence of impaired capacity. A challenge to a transaction needs evidence of capacity at the time it was made. Both need a clinician who can separate impaired judgement from unusual but competent choices: the law protects a person's right to make decisions others think unwise.

• Understanding of income, assets, debts and regular commitments
• Understanding of the specific transaction, where one is in question
• Ability to reason about consequences and alternatives
• Vulnerability to influence, and evidence of it
• The underlying condition, its course, and whether it is likely to change

1. Brief and documents. The referring party will send the claim file, medical records, prior reports, and the specific questions needing to be answered.
2. Interview. The independent assessment will usually take one to two hours. The subject is informed of the independence of the assessment and that the report will go to the referrer. Assessments are conducted in Dr Siddle's rooms at Spring Hill or by telehealth. Home visits are not undertaken.
3. Report. Dr Siddle will provide a report including the assessment and her response to the specific questions. Reports are usually provided within one week.