The transition from Ireland’s wardship system represents one of the most significant changes in adult decision-making law in recent memory. With the deadline of 26 April 2026 fast approaching, families across Ireland face the reality of taking on responsibilities that were previously managed by the Office of Wards of Court.
For families preparing for this transition, the shift brings both opportunity and challenge. The opportunity lies in having greater control over their loved one’s care and financial decisions. The challenge, however, is substantial—managing what are often significant compensation awards whilst ensuring compliance with complex legal requirements and maintaining the highest standards of care.
This transition affects approximately 2,300 adult wards, yet as of June 2025, only around 139 adults had been discharged from wardship—representing just 6% of those who must exit the system by the April deadline. For the vast majority of families still navigating this process, understanding the legal framework and developing robust asset management strategies has never been more critical.
Understanding the Assisted Decision-Making (Capacity) Act 2015
The Assisted Decision-Making (Capacity) Act 2015, which commenced on 26 April 2023, fundamentally transforms how Ireland approaches decision-making support for vulnerable adults. This legislation establishes a revolutionary three-tier system that prioritises supported decision-making over the traditional substitute decision-making model.
The Three-Tier Support System
The Act introduces three distinct levels of support, each designed to match the individual’s specific needs and capacity:
Decision-Making Assistant (DMA) serves as the first tier, providing limited support to individuals who can make their own decisions but need help understanding complex issues. This arrangement allows the person to retain full decision-making authority whilst receiving guidance on complicated matters.
Co-Decision Maker (CDM) represents the second tier, where individuals share legal authority to make joint decisions with their appointed supporter. This arrangement recognises that some people need more substantial support than a DMA can provide, whilst still maintaining their involvement in the decision-making process.
Decision-Making Representative (DMR) forms the third tier, appointed by the court to make certain decisions on behalf of individuals who lack the capacity to make specific decisions themselves. This arrangement most closely resembles the former wardship system but operates within a framework that emphasises the person’s rights and preferences.
Fundamental Principles of the New System
The Act operates on several key principles that mark a significant departure from the wardship system. Most importantly, there exists a presumption of capacity—every adult is presumed to have the capacity to make decisions unless proven otherwise. This presumption extends to all areas of life, from daily personal choices to complex financial decisions.
The legislation also emphasises that capacity is both functional and time-specific. An individual may have capacity to make certain decisions but not others, and this capacity can change over time. For example, someone might be capable of deciding what to wear or eat but lack the capacity to manage complex investment portfolios.
Perhaps most significantly, the Act prioritises supported decision-making over substitute decision-making wherever possible. The goal is to help individuals make their own choices rather than having decisions made for them.
Key Considerations for Families
Families navigating the transition from wardship face several critical decisions that will shape their loved one’s future care and financial security. Understanding these considerations is essential for making informed choices that protect both the individual’s interests and family relationships.
Selecting Appropriate Support Levels
Choosing between a DMA, CDM, or DMR requires careful assessment of the individual’s specific needs and capabilities. Families must consider not only their loved one’s current capacity but also how their condition might change over time.
For individuals with fluctuating conditions, such as certain mental health conditions or early-stage dementia, flexibility becomes paramount. A DMA arrangement might be suitable during periods of stability, whilst a CDM or DMR might be necessary during more challenging times.
The decision also impacts family dynamics significantly. Appointing a family member as a CDM or DMR places substantial legal and practical responsibilities on that person, potentially affecting relationships and creating stress within the family unit.
Navigating Legal Formalities
The legal requirements for establishing decision-making arrangements are comprehensive and must be followed precisely. Decision-Making Assistance Agreements require specific documentation and, in some cases, court approval. These processes can be complex and time-consuming, requiring expert legal guidance to ensure compliance.
Families must also consider the ongoing obligations that come with these arrangements. Regular reviews, reporting requirements, and compliance with the Decision Support Service’s oversight all become part of the family’s responsibilities.
Respecting Individual Autonomy and Rights
Central to the new system is respect for the individual’s autonomy and rights. Even when someone requires significant support with decision-making, their preferences, values, and previously expressed wishes must be considered and respected wherever possible.
This principle requires families to engage in sometimes difficult conversations about preferences and wishes whilst their loved one still has capacity to express them. Documenting these preferences becomes crucial for future decision-making, particularly regarding lifestyle choices, care preferences, and financial priorities.
Asset Management Strategies
The responsibility for managing potentially substantial compensation awards represents one of the most challenging aspects of the transition from wardship. Families who previously had no involvement in financial decision-making suddenly find themselves responsible for preserving and growing assets that must last a lifetime.
Comprehensive Financial Planning Approach
Effective asset management requires breaking down investment assets into distinct categories based on their intended use and time horizon. This approach helps ensure that immediate needs are met whilst preserving long-term financial security.
Liquidity reserves form the foundation of any robust asset management strategy. These readily accessible funds, typically equivalent to one year’s expenditure, ensure that immediate care costs, medical expenses, and unexpected needs can be met without having to sell investments at potentially unfavourable times.
Sustainable income generation represents the core of long-term financial planning. This pool of capital must be carefully managed to provide ongoing income whilst preserving the principal for the individual’s lifetime. The challenge lies in balancing the need for current income with protection against inflation and market volatility.
Additional capital protection provides an extra layer of security, serving as a financial buffer for unexpected major expenses or changes in care requirements. This capital should only be accessed when the sustainable income pool is insufficient to meet needs.
Investment Strategy Considerations
The investment approach for former wards requires careful consideration of several unique factors. Unlike typical investment portfolios, these assets must be managed with the understanding that they may need to last for decades whilst providing for substantial ongoing care costs.
Risk tolerance becomes a complex calculation that must balance the need for growth against the devastating consequences of significant losses. Conservative investment approaches may seem safer but could fail to keep pace with inflation and rising care costs over time.
Diversification across asset classes, geographical regions, and time horizons becomes essential for managing risk whilst providing growth potential. However, this diversification must be implemented thoughtfully, considering the individual’s specific circumstances and needs.
Tax Planning and Compliance
The tax implications of managing substantial assets for former wards require specialist expertise. Many individuals who were made wards of court due to permanent incapacitation may be entitled to significant tax exemptions on their investment returns, but maintaining these exemptions requires careful planning and compliance.
Working with qualified tax advisers becomes essential for optimising the tax efficiency of investment strategies whilst ensuring full compliance with Revenue requirements. This planning must also consider potential changes in tax legislation and how these might affect long-term financial planning.
Professional Support and Legal Guidance
The complexity of managing assets for former wards makes professional support not just advisable but essential. The Court recognises this reality, with section 38(6) of the Assisted Decision-Making (Capacity) Act 2015 specifically requiring consideration of the financial expertise available to proposed representatives.
When to Seek Legal Advice
Legal guidance becomes crucial at several key stages of the transition process. Initially, families need support in understanding their options and selecting the most appropriate decision-making arrangement. This decision has long-term implications for both the individual and family members who may take on formal responsibilities.
During the application process, legal expertise ensures that all requirements are met and documentation is properly prepared. Given the complexity of the legislation and the potential consequences of errors, professional guidance at this stage can prevent costly delays and complications.
Ongoing legal support may also be necessary for complex decisions, particularly those involving substantial financial transactions, property dealings, or changes to care arrangements. The legislation requires that certain decisions be made in specific ways, and legal advice helps ensure compliance with these requirements.
Financial Management Expertise
The requirement for financial expertise in managing former wards’ assets cannot be overstated. Investment management for this population requires understanding not just financial markets but also the specific needs and circumstances of individuals with disabilities or long-term care requirements.
Professional investment managers who specialise in this area bring crucial expertise in balancing competing priorities—generating sufficient income for current needs whilst preserving capital for future requirements, managing tax efficiently, and ensuring compliance with legal obligations.
This expertise becomes particularly valuable given the long-term nature of these investments. Decisions made early in the transition process will have consequences for decades to come, making professional guidance an investment in the individual’s long-term financial security.
Looking Ahead: The Path Forward
As the April 2026 deadline approaches, families must take proactive steps to prepare for their loved one’s transition from wardship. This preparation involves not just understanding the new legal framework but also developing practical strategies for managing what may be substantial assets and complex care needs.
The shift from wardship to the new decision-making support system represents more than a legal change—it’s an opportunity for families to take greater control over their loved one’s care and financial future. However, this opportunity comes with significant responsibilities that require careful planning, professional support, and ongoing commitment.
Success in this transition requires acknowledging both the opportunities and challenges ahead. Families who invest time in understanding the new system, developing robust asset management strategies, and establishing relationships with qualified professionals will be best positioned to ensure their loved one’s long-term welfare and financial security.
The complexity of this transition makes it clear that no family should attempt to navigate these changes alone. Professional legal and financial guidance is not just advisable—it’s essential for protecting both the individual’s interests and the family’s well-being.
For families facing this significant transition, taking action now to understand your options and develop appropriate strategies is crucial. The time to prepare is before the deadline arrives, not after. Contact HOMS Assist today for expert legal advice tailored to your family’s unique circumstances and needs.
