In British Columbia, a Financial Capacity Assessment should be done when there is concern that an individual could be incapable of managing their finances in the context of a psychiatric (e.g. - spending during a manic episode in bipolar I disorder) or neurocognitive disorder (e.g. - dementia). A certificate of financial incapability can be issued under Part 2.1 of the Adult Guardianship Act (AGA) and pertains only to the area of financial decision making. Through this law, the PGT may be appointed as statutory property guardian/committee of estate of an incapable adult to manage their financial affairs. This is not related to a certificate or certification under the BC Mental Health Act and MHA appeal mechanisms similarly do not apply.[1]
Financial capacity assessments in British Columbia depends on whether there is the presence of a power of attorney (POA)
Prior to starting a financial capacity assessment:
It is important to consider the different cognitive domains that may affect financial competency, and you may wish to document your observations in your mental status exam:
An individual should understand and appreciate the nature of their financial decisions, this can be done by asking questions such as:
Understand:
Appreciate:
It was explained to the patient that the purpose of today's assessment was a financial capacity assessment, and that should he be found incapable that another party would be identified to manage his finances. The patient was agreeable to this assessment.
1. Reported Income: The patient reports monthly income is $[XXXX] as pension from the government
2. Actual Income: The patient’s actual monthly income is $[XXXX] (confirmed with John Doe or other Collateral)
3. Rent: The patient reports their son pays the rent.
4. Rent Estimation: The patient recalls rent is approximately $[XXXX] in [Location]
5. Groceries: The patient reports expenses of $[XXXX] weekly
6. Utilities: Collateral indicates son pays for those as well.
7. Commodity estimate: The patient has a fair estimate of commodity prices such as $[XXXX] for a box of cookies or $[XXXX] for a litre of milk.
8. Banking: The patient reports they bank at [XXXX]
9. Deposits/Withdrawals: The patient reports bank withdrawals monthly and using cash to pay for expenses.
10. Other Assets: The patient tells reports no other savings, property, assets, or investments
11. Calculations: The patient was/was not able to do monetary calculations (e.g., 10% of $200; $100 minus $43.)
12. POA: The patient does/does not have a POA
13. Representation Agreements: The patient does/does not have a Representation Agreement
If incapable: Based on the financial capacity assessment today, there is indication that:
If capable: Based on the financial capacity assessment today, the patient expressed a clear understanding of his financial situation, including income, savings, expenses, assets, and basic calculation skills.
Based on this assessment, the [patient] is [CAPABLE]/[NOT CAPABLE] to manage their own finances. Note should be made that capacity is time and decision-specific, and a reassessment of capacity should be done if there are questions around the patient's capacity in the future. There [are/are not] reversible factors contributing to the incapacity (e.g., delirium [reversible] vs. dementia [irreversible]).