Ireland’s ward of court system is undergoing significant change, with important implications for how assets are managed and invested. For families and those responsible for financial decision-making, the shift raises both practical and strategic questions.
Here’s Moneycube’s guide on what is changing and why, and the questions that arise for those becoming responsible for investing the funds of a former ward of court.
What’s the ward of court system?
A ward of court is an individual – typically an adult – who has been deemed Irish courts to lack the capacity to manage their own affairs. Under the traditional system, the court stepped in to take control of the person’s financial assets, making decisions around spending, saving and investing on their behalf.
This system is now being phased out – and that means many families are faced with decisions around investing the funds of a former ward of court.
Why is the ward of court system changing?
Ireland is moving to a more modern, rights-based framework under the Assisted Decision-Making (Capacity) Act 2015. The legislation commenced three years ago, ending new wardship applications. It also started a process to review and discharge all existing wards.
The deadline for this transition was April of this year. This timeline is being extended by a further 18 months to get through the backlog. The aim is to ensure that individuals are not left in legal limbo while their circumstances are being assessed.
The aim is to move away from a system where decisions are made centrally by courts, towards one where individuals are supported to make their own decisions wherever possible.
Under the old framework, the High Court had full control over a ward’s assets. Investment strategies tended to be conservative, with a strong emphasis on capital preservation and liquidity.
As individuals are discharged from wardship, that control will shift. Depending on the outcome of the capacity review, responsibility for financial decisions may rest with:
- The individual themselves (if they are deemed to have sufficient capacity)
- A Decision-Making Representative
- A Co-Decision Maker
- A Decision-Making Assistant
Each of these arrangements carries different levels of authority and oversight, but all represent a move away from court-controlled investment management.
This transition has real implications for how funds are invested for any former ward of court in Ireland.
How are the investments of a ward of court changing?
In many cases, it will prompt a reassessment of existing investment strategies. The conservative approach typically adopted under the old system may no longer be appropriate – particularly where there is a longer investment horizon or a need to generate income.
There will also be a need for ongoing reviews, especially if the individual regains capacity and wishes to take a more active role in financial decisions. Tax and estate planning considerations may also come into play as assets move out of court-controlled structures.
What do families need to do?
As control of funds changes, there is an opportunity – and a responsibility – to put in place plans to invest the money appropriately. Broadly speaking, the goal is to strike a balance between safeguarding assets, maintaining their real value over time, and ensuring that income needs can be met when required.
Moneycube approaches this is through a diversified, multi-pillar strategy.
A five-pillar strategy for investing the funds of a former ward of court
The first pillar is liquidity and ultra-low-risk assets. This includes money market funds and ultra-short duration bonds. The focus here is on capital stability and accessibility—ensuring that funds are available when needed, with minimal volatility.
The second pillar centres on stability and wealth preservation. This may include short- to medium-term bonds, capital preservation-focused funds, and selective exposure to assets such as precious metals. The aim is to provide a defensive layer within the portfolio, helping to cushion against market fluctuations.
The third pillar is hard assets—such as infrastructure, property and commodities. These investments can offer diversification benefits and, in some cases, income streams linked to inflation. They also tend to behave differently from traditional equities and bonds, which can help reduce overall portfolio risk.
The fourth pillar focuses on value and income. This includes equity investments in established, cash-generative businesses, often accessed through low-volatility or dividend-focused funds. These holdings can provide a steady income stream, which may be particularly important where ongoing care or living expenses need to be funded.
The fifth and final pillar is growth. Exposure to growth-oriented equities helps protect against inflation and supports the long-term sustainability of the portfolio. While these assets can be more volatile, they play an important role in preserving the real value of funds over time.
In practice, these exposures are typically accessed through well-established, highly liquid investment funds, allowing for flexibility and ongoing adjustment as circumstances and market conditions evolve.
Former wards need trusted advice as control of their funds changes
Ultimately, the transition away from wardship represents a significant shift financially as well as legally. It places greater emphasis on tailored decision-making, informed planning, and ongoing review.
With the right advice in place, families will be able to make sure that funds are managed for current needs, growth, and long-term financial security for the individual. If your family is affected by these changes, contact Moneycube today.
