Child Trust Funds - access to funds proving difficult

Child Trust Funds – Access Difficulties

Between 2002 and 2011, millions of children were provided with a small cash sum for the Government’s Child Trust Fund Scheme. Families then had the choice to add their own contributions towards this to help increase the amount saved. As those children begin to turn 18, families are starting to withdraw these funds, however for those young people with disabilities, it has proved to be a far more complicated process.

 

Court of Protection

The Court of Protection is the body that makes decisions on financial or welfare matters for those who cannot make decisions themselves. If someone lacks capacity, then an application may need to be submitted to the Court of Protection in order to grant someone the authority to manage that person’s affairs.

 

The Locked Funds

In respect of the Child Trust Funds, for those who are over 18 and lack the capacity to make financial decisions, they are unable to simply withdraw the money as many of their peers will. In such a situation, families are being left with no option but to submit applications to the Court of Protection in order for a member of the family to act as a Deputy. This is a process that can be complicated, and some who have taken this route have been left paying two separate Court Fees due to the complex court process.

Whilst reviews have taken place, this currently remains the only route to access those funds that are locked away.

Once appointed as a Deputy, your duty will not end upon the withdrawal of the Trust Funds, and it will be your responsibility to account for the money spent throughout the life of your child.

 

How we can help

It is estimated that tens of millions of pounds belonging to around 80,000 young people without the capacity to make financial decisions could be locked away until families have completed the Court of Protection process.

Such a process is precise, complex and time consuming. Given the complexities, it can be sensible to seek legal advice from experienced professionals before proceeding.

If you are looking for advice on Deputyship Applications, or on any Court of Protection queries, please contact our Probate, Wills and Trusts Team here. There is a quick form to complete and then we will be in touch. Find out more about the team and the different services we provide here.

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