The “vast majority” of parents or guardians of children who lack mental capacity will no longer have to pay fees when seeking access to a Child Trust Fund (CTF), it has been announced.
According to the Ministry of Justice (MoJ), families who need to access money in a CTF to cover the costs of care can now ask for the fees to be waived.
CTFs are long-term, tax-free savings accounts set up for young people between 01 September 2002 and 02 January 2011, which cannot be accessed before the child turns 18.
However, where a CTF is possessed by a child who lacks mental capacity, a parent or guardian must apply to the Court of Protection to gain access to the account to prevent fraud or abuse.
While there are already no fees to be paid if the parent or guardian applies to the court before their child’s 18th birthday (unless the child has other substantial assets or income), the changes ensure that families can now manage funds to “support the young person’s future”, no matter their age.
The MoJ has also confirmed that those who have already paid can request a refund under the plans.
Commenting on the announcement, Justice Minister Alex Chalk said: “We want to reduce the obstacles families face in supporting young people who lack mental capacity.
“This fee remission will ensure that families who need to go to the Court of Protection to access these funds will not suffer financially as a result.
“Our working group will look at improving this process even further, making it more streamlined and accessible.”
Professor Baroness Finlay of Llandaff, Chair of the National Mental Capacity Forum, added: “We need to balance the needs of families with children with a learning disability with ensuring appropriate safeguards are in place. Improving guidance and removing the need to pay fees are welcome steps to providing that balance.”
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