Abstract
This article focuses upon local authority responses when elderly people with dementia are incapable of managing their own financial affairs. The article starts with a critique of existing legal and administrative arrangements for handling and managing other people's money and examines some of the recommendations contained within the Law Commission report Mental Incapacity. Drawing on research about the policies, procedures and guidance of twenty-seven local authorities, this article demonstrates the fragmented and variable response of local authorities to issues such as assessing mental and financial incapacity; ensuring best practice in handling and spending money on behalf of another person; regularly reviewing and monitoring the need for receivership or appointeeship and allowing residential and nursing-home managers and proprietors to act as appointees. The article asks whether local authorities should continue to be involved in this area and suggests that, if so, they need to urgently develop co-ordinated and systematic policies and practice to safeguard the financial affairs of elderly people with dementia.