Get Financial Capacity Assessment Example

Financial capacity is a medical–legal construct that represents the ability independently to manage one's own financial affairs in a manner consistent with personal self-interest and values.

Most financial capacity measures include a number of financial domains, such as bill paying, checkbook management, and cash transactions3, yet the legal standards for financial incapacity are strongly related to informed (financial) decision-making.

Financial capacity, thus, involves not only performance skills (e.g., counting coins/currency accurately, completing a check register accurately, paying bills), but also judgment skills that optimize financial self-interest and promote independence, and values that guide personal financial choices.

What triggered this assessment? What is the specific decision? What practicable steps have been taken to enable and support the person to participate in the decision-making process? Is the individual able to understand the relevant information?

What triggered this assessment? What is the specific decision? What practicable steps have been taken to enable and support the person to participate in the decision-making process? Is the individual able to understand the relevant information?

Typical indicators include financial ratios such as debt to equity/leverage, liquidity ratios, specific ratios for the project such as equity to project , and others, as well as magnitudes, such as the average revenues of “last three years”, level of profits of “last three years” (or evidence of being in profit), ...

The MCA sets out a 2-stage test of capacity: 1) Does the person have an impairment of their mind or brain, whether as a result of an illness, or external factors such as alcohol or drug use? 2) Does the impairment mean the person is unable to make a specific decision when they need to?

This is a tool that can be used in part, whole or amended as required to support practitioners to assess whether a person is; Able to manage all, or some elements of their finances; Unable to manage all, or some elements of their finances; or.