Litigation proceeds: Capacity to manage funds with family assistance

CK v AKJ [2015] NSWSC 498 is useful for its consideration of whether a manager should be appointed (on behalf of a claimant receiving litigation proceeds) having regard to the person’s subjective circumstances, including family support.

At [54] the Lindsay J said that the question of whether a person is or is not incapable of managing his affairs depends upon an assessment of his subjective circumstances, including the support available to him from his family and the extent to which he, placed as he is within a benign domestic environment, can be relied upon to make sound judgments about his or her welfare and interests.

The family circumstances were further mentioned at [56]:

Were I of the view that the defendant lacks capacity for self-management, I would have determined that, notwithstanding his incapacity, an application of the welfare principle (measuring what is to be done, or not done, by reference to what is in the interests, and for the benefit, of the ..(person)) requires that the …. application for a protected estate manager be dismissed. The … (person’s).. support network is sufficient unto the day.

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