Accessing a child trust fund for a disabled adult
If you are the parent or guardian of a young adult with a disability or a condition that affects their mental capacity, you may face a significant legal hurdle when trying to access their Child Trust Fund (CTF). These accounts, set up by the government for children born between 1 September 2002 and 2 January 2011, automatically become the young person’s property when they turn 18. For families where the young adult cannot manage their own finances, gaining legal authority to access these funds can be a lengthy and complex process.
This situation matters because a CTF can hold a meaningful sum of money, often intended to help a young person start their adult life. When that individual cannot make financial decisions for themselves, their family must navigate the UK’s Court of Protection system to be appointed as a deputy, which grants them the legal authority to manage the funds. As highlighted by recent cases, this process can take over a year, leaving families in a difficult position where money earmarked for their child’s benefit is locked away.
Why is a court order needed?
Under UK law, when a person turns 18, they are considered a legal adult. Financial institutions, including CTF providers, are bound by strict rules to only release funds to the account holder unless someone else has proven legal authority to act on their behalf. If the young adult lacks the mental capacity to manage their own money—due to a learning disability, brain injury, or other condition—no one, not even a parent, can automatically access the account.
This protection is crucial. It exists to safeguard vulnerable adults from financial abuse. However, for well-meaning families, it creates a procedural barrier. The only way to gain this authority is through the Court of Protection, which is part of the UK judicial system responsible for making decisions for people who cannot do so themselves.
The deputy application process
To become a deputy, you must apply to the Court of Protection for a court order. This is not a quick formality. The process involves several key steps:
First, you must obtain a medical assessment (often an LP3 form) from a doctor or psychologist, confirming that the individual lacks the mental capacity to manage their property and financial affairs. You then complete a lengthy application pack, which includes detailed information about the person’s finances, family, and why you are suitable to be their deputy.
There are application fees, and if appointed, you may need to pay an annual supervision fee to the Office of the Public Guardian, which oversees deputies. You will also be required to take out a security bond, which acts as an insurance policy to protect the individual’s funds. The entire process, from gathering evidence to receiving the court order, can take many months, with some families reporting waits of over a year.
What can you do while waiting?
The waiting period can be financially stressful, especially if the CTF funds are needed for immediate care, equipment, or other expenses that benefit the young adult. It is important to plan for this delay well before the 18th birthday. Start the application process as early as possible—you can apply from when the person is 17.
Communicate with the CTF provider. Inform them that a deputy application is in progress. While they cannot release funds, they may be able to note the account and provide any necessary statements for the court application. Keep detailed records of all correspondence and application submissions.
Key considerations and responsibilities
Becoming a deputy is a serious legal responsibility with ongoing duties. You must always make decisions in the best interests of the person you are representing. You will need to keep careful financial records and submit an annual report to the Office of the Public Guardian, detailing how the funds have been used.
The money in the CTF must be used for the benefit of the individual. This could include paying for therapies, educational courses, transport, adaptive technology, or contributing towards their living costs. It cannot be used for general family expenses or for the benefit of others.
For many families, navigating this system is their first encounter with the complexities of mental capacity law. It can feel daunting, but understanding the steps involved is the first move towards unlocking these important funds to support a vulnerable adult’s wellbeing and future.
If you are facing this situation, the key is to start early, be prepared for a process measured in months rather than weeks, and seek guidance. Organisations like Mencap or the Citizens Advice Bureau can provide initial support, and for complex cases, consulting a solicitor specialising in Court of Protection matters may be advisable.
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