Child Trust Fund
The question
To ask the Secretary of State for Justice, without further legislation or guidance, what percentage of the 80,000 families affected by the Locked Child Trust Fund issue does the government expect to be able to access their funds within the next three years.
Answered by Alex Davies-Jones
It is a longstanding common law principle that an adult requires legal authority to manage property belonging to another adult. This principle has existed long before Child Trust Funds and the Mental Capacity Act 2005 and is crucial when the individual in question is a vulnerable person.
The Mental Capacity Act facilitates access for parents and carers to matured Child Trust Funds (CTF) on behalf of young adults who lack capacity, through a legal process that provides necessary safeguards.
Where a CTF account holder lacks capacity to access matured capital funds in their account, a parent or carer can obtain legal authority to manage those funds by making an application to the Court of Protection. Authority can be obtained in advance of the account holder reaching age 18, and in many cases no court fee will be payable.
A toolkit for parents and carers Making Financial decisions for young people who lack capacity’ Making financial decisions for young people who lack capacity: A toolkit for parents and carers - GOV.UK was published in June 2023 and explains the process.
The Ministry of Justice is considering what further steps could be taken to raise awareness of the current law and improving the court process while maintaining necessary safeguards.
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