HM Treasury announced plans for legislation to simplify access to Child Trust Funds for young adults who lack the mental capacity to make financial decisions. The proposed scheme is expected to allow parents and carers to approach fund providers directly instead of using the complex and often costly Court of Protection process. An estimated 63,000 to 126,000 young adults could benefit, with Child Trust Funds worth an average of GBP 2,600 each. Introduced in 2005, Child Trust Funds made no provision for straightforward access when account holders reached 18 without the capacity to manage their finances. The government will work with families, disability charities and financial services providers to determine who can access funds, what evidence they must provide and which safeguards are needed to protect account holders. The Court of Protection will remain available as an alternative route to protect the financial interests of adults lacking capacity. The government plans to bring forward an amendment to the Financial Services and Markets Bill to enable the scheme. Detailed rules would be set out in secondary legislation following parliamentary approval.
HM Treasury plans simpler Child Trust Fund access for an estimated 63,000 to 126,000 young adults lacking mental capacity
HM Treasury plans legislation allowing parents and carers to access Child Trust Funds directly through providers for young adults who lack the mental capacity to make financial decisions. The scheme could benefit an estimated 63,000 to 126,000 young adults, while retaining the Court of Protection as an alternative route. Eligibility, evidence requirements and safeguards remain to be developed, with detailed rules to follow parliamentary approval.