Skip to content Skip to footer
Enquiries Call 0800 652 8025
Parent playing with two children

Access to Child Trust Funds

The question of access to Child Trust funds by young adults who lack capacity has caused some controversy recently.

It was hoped that a Ministry of Justice consultation would result in the establishment of a small payments scheme for payments of under £2500. However, this proposal was rejected by the government with a pledge that Court of Protection procedures would be simplified by digitisation, and that awareness of the Mental Capacity Act 2005 (MCA) would be raised among the parents of incapacitated young adults.

This has been followed by the publication of a “toolkit” for parents which highlights the move away from parental decision making as the child becomes a young adult to being governed by the provisions of the MCA and the requirement to encourage the young person to make their own decisions if they are able.

The toolkit points out that a Court of Protection order will be required to access a Child Trust Fund and that it’s best to apply well before the child reaches 18 so access can be obtained as soon as possible after they become an adult. An application before the child reaches 18 also has the advantage that no court fee is payable.

For young adults likely to have assets over and above their Child Trust Fund we would recommend a review of their finances as they approach their 18th birthday, to decide a comprehensive plan for the future, utilising the appointment of a Deputy if necessary.

Posted:

Your key contact

Paul Davies

Partner

Manchester
Paul is a Partner and head of the private capital team in Clarke Willmott’s Manchester office. Paul specialises in estate planning, Wills, & trusts for clients with complex family and finance arrangements.
View profile for Paul Davies >

More on this topic

Wills, trusts, probates and estates

Inheritance tax planning in uncertain times

In this article we look at how to carry out inheritance tax (IHT) planning in a way that is timely and does not lead to an unwelcome amount of immediate financial detriment.
Read more on Inheritance tax planning in uncertain times
Wills, trusts, probates and estates

How to prevent will disputes

With an increase in people disputing Wills every year, lawyers are urging people to take professional advice early and avoid financial and familial stress later.
Read more on How to prevent will disputes
Wills, trusts, probates and estates

Don’t leave it too late: IHT on gifts skyrockets

The amount of inheritance tax (IHT) paid on gifts has seen a 153% increase since 2011, lawyers are warning people to address their financial planning to avoid being caught out.
Read more on Don’t leave it too late: IHT on gifts skyrockets

Looking for legal advice?