Child Trust Fund
The question
To ask the Secretary of State for Justice, if she will make it her policy to allow release of Child Trust Funds to family members where those funds are inaccessible to disabled children unable to manage their finances.
Answered by Sarah Sackman
Where a young adult lacks mental capacity, including due to a disability, the law requires parents or a guardian to have legal authority to make decisions on their behalf about financial assets or property. This includes in relation to accessing funds held in a Child Trust Fund.
On 9 June 2023, the Ministry of Justice published the Making Financial Decisions for young people: parent and carer toolkit explaining the process by which parents and guardians of disabled children are able to obtain legal authority if no other arrangements are in place. This can be done by making an application to the Court of Protection for an order authorising access to monies held in a Child Trust Fund or Junior ISA. The toolkit is available on Gov.UK.
We understand that concerns remain. We are considering the options for improving access to matured Child Trust Funds while balancing the need to maintain safeguards and protect the best interests of individuals that lack capacity.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →