Navigating the Office of the Public Guardian (Scotland): A Guide for Financial Guardians
When a loved one loses the capacity to manage their own finances, stepping into the role of financial guardian is both a legal responsibility and a personal commitment. Under the Adults with Incapacity (Scotland) Act 2000, financial guardians are appointed by the Sheriff Court to oversee the financial and property affairs of an adult who lacks capacity. This guide outlines the key stages of the guardianship process, your responsibilities to the Office of the Public Guardian (Scotland) (OPG), including the relevant documents you must submit to the OPG and practical advice on managing the role effectively.
What Is a Financial Guardian in Scotland?
A financial guardian is someone legally appointed to manage the financial affairs of an adult who is unable to do so themselves due to mental or physical incapacity. This role is distinct from a welfare guardian, who handles health and personal care decisions.
The Role of the Office of the Public Guardian (Scotland)
The OPG is the official supervisory authority for financial guardians appointed under the Adults with Incapacity (Scotland) Act 2000. They are responsible for
- Registering powers of attorney, guardianship orders, and intervention orders
- Supervising financial guardians
- Investigating concerns about financial mismanagement
- Providing guidance to those managing another person’s affairs
Once appointed, the OPG becomes your main point of contact for approvals, monitoring, and compliance.
Key Responsibilities of a Financial Guardian
As a financial guardian, you are entrusted with the responsibility of managing another adult’s financial affairs for their benefit. This role comes with a number of formal obligations, many of which must be reported to the OPG. Early in your appointment, you’ll be expected to complete several essential tasks that form the foundation of your guardianship. These include applying for a Bond of Caution (if required), compiling an Inventory of Estate, and submitting a Management Plan. Over time, your responsibilities continue with the preparation of an Annual Account. Below, we take a closer look at each of these key duties.
Bond of Caution
A Bond of Caution is a type of insurance that the court may require when appointing a financial guardian in Scotland. It serves as a financial safeguard for the adult whose affairs are being managed.
What is a Bond of Caution?
- It is a guarantee that reimburses the adult’s estate if the guardian mismanages funds—whether by accident or deliberate misconduct
- The Sheriff Court decides whether a bond is required and sets the amount.
- The bond is renewed annually during the account review and the premium can be paid from the adult’s estate.
Inventory of Estate
Due within three months of your appointment. It should include:
- Bank accounts and savings, with balances as at your date of appointment
- Pensions and benefits
- Property and other assets, with values as at your date of appointment
- Debts and liabilities
Management Plan
Also due within three months. It should cover:
- Regular expenses (e.g. rent, utilities, care costs)
- Debt repayments
- Investment or savings strategies
- Anticipated large expenses
If the moveable estate (i.e. not including land or buildings) is complex or exceeds £50,000, you will require to seek professional financial advice either before or after your plan is approved.
Annual Account
Submit an annual account detailing:
- Income (e.g. pensions, rental income)
- Expenditure (e.g. care fees, household bills)
- Changes in assets or liabilities
The first account is due 14 months after your appointment. For example, if appointed on 14 April 2025, your first account is due by 30 June 2026 to cover the period from 14th April 2025 to 30th April 2026.
When submitting any of these documents, it is essential to include appropriate supporting evidence to verify the information provided. This typically includes bank statements, benefit award letters, and receipts for significant expenses.
These documents help ensure that the adult’s financial affairs are being managed transparently and in accordance with your legal duties. Submissions that lack sufficient evidence may be delayed or returned for clarification, so it’s advisable to keep thorough records from the outset of your appointment.
Seeking Consent for Major Decisions
As a financial guardian, you are not only responsible for day-to-day financial management but must also seek prior consent from the OPG before making major financial decisions on behalf of the adult. This includes actions such as selling a property that the adult currently resides in or authorising large, one-off expenditures that fall outside the scope of your approved management plan. Even if your guardianship order includes powers over heritable property, the OPG must still be informed.
This ensures that any significant decisions benefit the adult and are legally compliant. Guardians should also be prepared to provide supporting documentation and, where necessary, seek legal advice to navigate this process effectively.
Renewal and Final Accounts
Guardianship orders are often time-limited. At the end of a financial guardianship order, the process diverges depending on whether the order is renewed or not. If renewal is sought, the guardian must engage in a formal review process, submit renewal documentation to the Sheriff Court, and continue fulfilling their duties, including the submission of annual accounts.
However, if the guardianship is not renewed (either because the adult regains capacity, passes away, or the order naturally expires) the guardian is required to submit a Final Account to the OPG.
Timeline of Key Responsibilities
|
Task |
Deadline |
Notes |
|
Bond of Caution |
Fixed by Court – normally 4 weeks from appointment |
Required before powers are confirmed |
|
Inventory of Estate |
Within 3 months |
Include all assets, debts, and supporting documents |
|
Management Plan |
Within 3 months |
Outline how finances will be managed |
|
First Annual Account |
14 months after appointment |
Details all income, expenses, and changes |
|
Subsequent Annual Accounts |
Every 12 months |
Ongoing requirement |
|
Final Account |
Upon termination of guardianship |
Required if the adult regains capacity or passes away |
Final Thoughts
Becoming a financial guardian is a significant legal and personal responsibility. With the right knowledge, organisation, and support, you can manage the adult’s finances with confidence and compassion. The OPG is there to guide you, and by staying proactive, you’ll be well-equipped to act for the Adult’s benefit.
Get in Touch
Here at TC Young, our experienced team handles financial guardianship in Scotland every day. If you are, or are considering becoming, a financial guardian in Scotland, we can guide you through your legal duties, deadlines, and the requirements of the Office of the Public Guardian. Get in touch with us for practical advice and support.
