Saying an adult “can’t manage his own affairs” requires a court determination; family members can’t decide on their own

Filing a petition with the court incurs filing fees, typically ranging from a few dozen to a hundred yuan. An additional evaluation fee is required, usually several thousand yuan, which the applicant must pay upfront. The entire process takes several months.

Article 21 of the Civil Code states: “An adult who cannot recognize his own actions is deemed incapable of civil conduct; his legal representative must act on his behalf in all civil matters.” Article 22 adds: “An adult who can only partially recognize his actions is considered to have limited civil capacity; his legal representative must act on his behalf or give consent and ratification for any civil acts, though he may independently perform acts that yield pure benefits or are consistent with his mental and intellectual condition.” Article 24 further provides that any interested party or relevant organization may petition the court to declare such an adult incapable or of limited capacity. Once declared, upon application by the individual, interested parties, or relevant organizations, the court may later restore his limited or full capacity based on improvements in his mental health. Relevant organizations include residents’ committees, villagers’ committees, schools, medical institutions, women’s federations, disability federations, legally established senior citizen groups, and civil affairs bureaus. Article 23 designates guardians as legal representatives for those lacking or having limited capacity (nationwide, effective 1 January 2021).

中华人民共和国民法典（第二十一条、第二十二条、第二十三条、第二十四条）. https://flk.npc.gov.cn/detail?id=ff808081729d1efe01729d50b5c500bf

The associated costs must be clearly outlined. This procedure is a special court process; it is faster than regular civil cases but still takes several months. Medical diagnosis records must be submitted, and most courts also order an independent evaluation, the fees for which are typically several thousand yuan and paid upfront by the applicant. Signing documents or disposing of property on someone’s behalf without following this process may render those actions invalid; even property sales could be reversed. It is also important to remember that limited capacity does not mean a person can’t perform any actions at all. He may independently handle matters consistent with his mental state or those that bring him pure benefits; guardians should not automatically handle everything on his behalf. Details on determining guardianship are provided in section 19 (Guardians).