In Cyprus, the legal management of an incapacitated person’s estate is a critical safeguard designed to protect individuals who are unable to manage their own affairs due to physical or mental incapacity. Governed by the Law on the Management of the Property of Incapacitated Persons of 1996 (23(I)/1996), this process is firmly rooted in principles of protection, accountability, and judicial oversight.
Under Cypriot law, any person with a legitimate interest—such as a family member, legal representative, or even a concerned third party—may apply to the District Court to have someone legally declared incapacitated. The Court's decision relies on comprehensive medical evaluations, typically by psychiatrists or other qualified experts. If incapacity is confirmed, the Court issues an order both restricting the individual’s legal ability to manage their property and appointing an estate administrator.
The appointed administrator bears significant legal duties. They are entrusted with the care, preservation, and management of the incapacitated person’s property. All decisions must be made in the best interest of the individual, with transparency and adherence to legal and ethical standards. The administrator is also required to submit regular reports—generally on an annual basis—detailing all actions taken and transactions made in relation to the estate. The Court may impose stricter reporting obligations if special circumstances exist.
This role is not merely fiduciary—it carries weighty legal responsibility. The administrator must act diligently, honestly, and prudently. Mismanagement, negligence, or unlawful appropriation of assets may result in serious legal consequences, including personal liability and financial penalties. The Court retains the power to intervene at any stage if concerns arise.
An administrator’s role may be terminated by a subsequent Court order. This can occur if the incapacitated person regains legal capacity, passes away, or if the administrator acts with deceit or negligence.
Essentially, managing the estate of an incapacitated person in Cyprus is not simply a legal function—it is a protective mechanism aimed at upholding dignity, preventing exploitation, and ensuring that the rights and welfare of vulnerable individuals are safeguarded at every step.