Child trust funds : Unlocking more than savings

It is unlikely that anyone gave a passing thought, when child trust funds were created, as to how they would be accessed for a 16 year old with impaired development and the future problems that were in store.

What started off as a wonderful idea, accounts opened with love and hope for the future have turned into a lengthy and complex legal process, sometimes costing as much, if not more as the balance of the account. 

For youngsters with capacity issues it is not as simple as registering on the account for control at 16 ready to access funds at 18. An application to the Court of Protection for the appointment of a financial deputy or a directions order to allow access to the account is necessary. Whilst I would recommend that all parents of children with impaired development obtain a financial deputyship order regardless of their circumstances, I have first hand experience of helping families through the emotional stress, financial burden and uncertainty that accessing these accounts. For those who have diligently saved for their child's better future it is sole destroying to see those savings inaccessible when needed or depleted by an application to the Court.

Parliament has recently heard the Child Savings Accounts (Mental Capacity and Disability) Bill which proposes changes that could make a real difference to thousands of disabled young people and their families across England and Wales. The bill aims to deal with the challenges families face when accessing child trust funds and junior ISAs for these children. Whilst there is a long road ahead for this Bill, which requires Government backing to become law, its introduction represents an important step forward for disabled youngsters and their families.

This Bill has been brought about by families campaigning not to accept the status quo and the disadvantage their children suffer because of their lack of capacity. It is a powerful reminder that when people share their experiences, positive change can happen.

The reality is however that for a parent to continue to communicate with third parties and manage the financial and welfare needs of their children it is necessary to have a deputyship order from the Court of Protection. Yes, they do cost money to obtain and the process is longwinded and, sometimes, hard work, the benefits and peace of mind you will have when you are the appointed deputy, far outweighs the costs and headache of obtaining them in the first place.

If you do not have a deputyship order in place and you have a child with impaired learning please do not wait until they are 18 to put these in place. Make sure you take steps to secure your decision making power after that 18th birthday way before the candles are blown out on the cake! If you need some help or you just want a chat about what you need to do, that's what I'm here for!