How do I close down my disabled child’s trust fund?
Child Trust Funds are long term, tax free savings accounts which were set up, with the Government depositing £250, for every child born between 1 September 2002 and 2 January 2011. Young people can take control of their Trust Fund at 16 and withdraw funds when they turn 18 and the account matures.
Many of the young people who benefitted from the scheme have now come of age. HMRC recently revealed that more than 670,000 young people have yet to claim their Trust Fund (with the average saving pot being worth £2,212) and have strongly encouraged them to do so.
For many young people the process for claiming their Trust Fund is easy; they simply arrange to set up a bank account in their own name for the funds to go into.
But for some young people who live with a medical condition or disability which renders them unable to set up a bank account and manage their money without support the process is far less straightforward.
In this situation if the young person in question is unable to make a Lasting Power of Attorney then the Trust Fund cannot be accessed without their parent applying to the Court of Protection for a Deputyship Order to manage their finances.
Concerns have been long been raised about the disproportionate cost and time of such an application (particularly considering the small amounts of money usually involved) but following a consultation the Ministry of Justice ultimately decided against amending the law to allow families in England and Wales access to small funds belonging to relatives without having to ask permission from the Court.
We understand that the idea of applying for a Deputyship order to be able to access your child’s Trust Fund can be daunting and so please do contact our friendly and experienced team and we will endeavor to ensure that you are fully supported throughout the process.
If you believe you have a situation where you require legal advice, please contact us on telephone 0116 212 1000 or 01858 445 480, alternatively fill in the free Contact Us form and we will get in touch as soon as possible.
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