In July 2009 the Court of Protection and Court Funds Office investment rate was dropped to 0.5%.
For those who acted as a Receiver in 1991 when the rate was 12 %, falling to 6% in 2002, the times they are a changing.
Unfortunately, where there are needs to be met, the impact on a Patient’s income will be significant. The temptation may be to sit tight and do nothing. The difficulty is that Receivers (as was) and Deputies have to exercise such care and skill as is reasonable in the circumstances when investing the assets of a Patient.
In the current economic circumstances, is it reasonable to sit tight?
The role of Deputy is an onerous one. There are common complaints about administration, cost and endless attempts to speak to someone who can help at the Office of the Public Guardian. Far less discussed is the position of responsibility the Deputy is place in.
For those Patients with the majority of their assets in the Court of Protection, what should they do?
The main priority is to avoid doing nothing. As the economic climate has changed there is no reason to necesarily change your investment strategy but you should be periodically reviewing it.
If you feel uncomfortable doing it yourself then take appropriate financial advice – from a financial advisor. Before you do so you need to be up to speed with the varying types of qualification. The difference between a Certified Financial Planner and a Certificate of Financial Planning is huge. You also need to be absolutely sure you understand how you are paying. If it appears as though you are not paying for advice, you almost certainly are.