Accessing child trust funds for those who lack capacity

If your child was born between 1 September 2022 and 2 January 2011 they were probably started a child trust fund by the government. A fantastic idea introduced to help young people get a head start with saving. Although there were started with a little bit some can have hundreds or even thousands of pounds in them by the time a child reaches eighteen.

And it was a fantastic idea, in theory! But for young people with capacity issues resulting from learning disabilities or other conditions that affect decision making it these trust funds have created a bit of a mess, and despite requests to make access in these circumstances easier, nothing has really happened.

Accessing the child trust fund at eighteen

When a young person turns eighteen the child trust fund becomes theirs and only they can access the money. But if that young person lacks capacity they cannot deal with the paperwork or sign forms to do this. Most banks, building societies and fund providers will not release funds to parents or carers, even though they are the ones who have been managing the account since birth! The providers will want something called a deputyship order from the Court of Protection.

What is a Court of Protection order?

This is a legal document that gives someone the authority to manage the financial affairs of a person who lacks capacity when they are unable to manage themselves. It is, most of the time, a sensible thing to have, but if you just need the order to access the child trust fund it is like using a sledgehammer to crack a nut!

The process to obtain the Court order is a lengthy process which requires the completion of a number of forms, a mental capacity assessment, cost and time, not to mention the stress that accompanies the application.

After many complains and petitions from frustrated parents and charities the government has explored simplifying the process but at the time of writing this article, you still need a Court of Protection order.

My advice

I totally agree that this is a complete nightmare and a simpler solution should have been found, or even considered in when the fantastic idea was thought of! But here we are. So, let's look at this practically.

You may not just need authority to access the child trust

unable to access child trust fund

fund. If you have a bank account for your child, or they inherit some money in the future, or you need to sign tenancy agreements or make benefit claims authority to make financial decisions would be a really sensible thing to have. Therefore, don't just ask the Court of Protection to make a one off order to allow access to the child trust fund account ask for a financial deputyship order. This will then allow a nominated person to have authority to deal with most financial matters which could arise during the lifetime of the person owning the child trust fund.

Don't wait until your child is eighteen to do this. You can get a financial deputyship order for a child under the age of eighteen if their capacity is a permanent state. Argo can help guide you through the process of applying to the Court of Protection for a deputyship order for your child. Give us a call to chat some more.