My friend was sadly involved in an accident at work that has left him paralysed. He was awarded £500,000 in compensation through the courts. He has appointed me his Property and Affairs Deputy to look after the account. What interest rate is paid on a Court Funds Office special account?

A Court Funds Office account is called a ‘special account’ if the account holder has a deputy.

Overview

You may need to manage a Court Funds Office account for someone if you’re their property and affairs deputy and you’re authorised by the Court of Protection to look after money on their behalf.

Check the court order that appointed you as deputy - it tells you what you’re authorised to do.

You’ll need to apply on behalf of the person you’re deputy for to:

manage an account that was opened for them by court order, for example for money they received from a court case

open an account for them

They’ll get a special account with the Court Funds Office.

Your responsibilities

The account belongs to the person you’re deputy for. You’re the only person who can manage it on their behalf.

You must keep to your responsibilities as a deputy when you’re managing the account.

Check the court order that appointed you as deputy - it tells you the limits on what you can and cannot do with the account.

Apply

You need to apply to:

open an account for someone

manage an account for someone

You must be appointed by the Court of Protection as the person’s property and affairs deputy.

If your application is successful, you’ll be able to make withdrawals from the bank account that you run on behalf of the person whose affairs you manage.

Check the details on the court order that appointed you as deputy - you’ll need the date of the order and the case number.

Fill in form CFO A to apply for authority to make withdrawals - give your bank account details and tick the ‘New details’ box.

Attach a copy of your bank statement (less than 3 months old) or a letter from your bank to confirm your bank account details.

Fill in form CFO L to pay money in to the account at the same time as applying - attach a cheque made payable to the ‘Accountant General of the Senior Courts’.

Send forms and attachments together with a copy of the original court order that appointed you as deputy - it must have a seal.  The address is on the forms.

You’ll get a letter from the Court Funds Office within 5 working days to confirm that you’re set up to manage the account.

Your form will be returned if your application cannot be processed - you’ll be told what you can do to fix this.

Manage an account

A Court Funds Office account is called a ‘special account’ if the account holder has a deputy.

Statements

As the deputy, you’ll get statements in April or May and in October or November each year.

You can also ask for a statement at any time by contacting the Court Funds Office.

Interest and tax

Special accounts currently pay 0.1% interest. The rate is not fixed - it is set by the Lord Chancellor.

Tax is not deducted from special accounts. The person you’re deputy for must pay income tax if the interest is more than their tax allowance.

You’ll also get tax vouchers (for tax returns) with your April statement.

Change of address

Write a letter to the Court Funds Office to tell them if your address changes so you can keep getting statements and tax vouchers.

Investments

You can invest in the stock market using money from the Court Funds Office account you manage if it:

holds £10,000 or more for the person you’re deputy for

is likely to hold the money for 5 or more years

The Court Funds Office makes stock market investments in companies using the Equity Tracker Index Fund (ETIF).

Write to the Court Funds Office asking them to invest the sum you require in the ETIF.

Check the value of the ETIF on the Financial Times website.

Tax

Tax is deducted from dividends on investments. However, if the person you’re deputy for has a high income, they may need to pay more income tax on interest or dividends from the investments.

They must also pay Capital Gains Tax if their investments are sold for a difference in value that’s more than their allowance.

Deposits

You can pay money in to an account after you apply to manage the account.

Check the details on the court order that appointed you as deputy - you’ll need the date of the order and the case number.

Fill in form CFO L. You must physically sign the form - this is also known as a ‘wet signature’. Electronic signatures will not be accepted.

Write a cheque for the amount you’re paying in, payable to the ‘Accountant General of the Senior Courts’.

Attach a copy of the original court order that appointed you as deputy (it must have a seal) and send it with the form and cheque to the address on the form.

You’ll get a letter from the Court Funds Office within 5 working days to confirm that it’s processed your deposit.

Your form will be returned if your deposit cannot be processed - you’ll be told what you can do to fix this.

Withdrawals

You can set up one-off withdrawals or regular withdrawals into the bank account that you run on behalf of the person whose affairs you manage after you apply to manage the account.

You can only make a payment to another bank account (for example to a solicitor’s account to pay fees) if you have a court order from the Court of Protection saying you can do this.

You can only make withdrawals within limits set by the Court of Protection - check the court order that appointed you as deputy.

Set up payments

Check the court order that appointed you as deputy - you’ll need the date of the order and the case number to fill in payment forms.

Fill in:

form CFO P to make a one-off payment to your bank account

form CFO R to set up or change a regular payment to your bank account

form CFO 205 to make a one-off payment to another bank account

You must also fill in form CFO A if your bank account details have changed – tick the ‘amending details’ box and attach either:

a copy of a bank statement (less than 3 months old)

letter from your bank confirming your new bank account details

Send forms by post. The address is on the forms. You’ll get a confirmation letter from the Court Funds Office within 5 working days.

One-off payment to your bank account

A cheque will be paid into your bank account within 5 days. The money will take 3 working days to clear.

If you’re withdrawing money for a gift or charitable donation, fill in form CFO PG and send it with form CFO P.

Regular payment to your bank account

Use form CFO R to set up, amend, renew or stop a regular payment - tick the box on the form that applies.

Specify the number of months you want a regular payment to continue (up to 23 months).

The Court Funds Office automatically renews regular payments that are set up to continue for 23 months - you’ll get a letter to remind you 1 month before renewal.

Payment to another bank account

Ask the person or company the payment is for to sign form CFO 205. You must get a copy of a a bank statement (less than 3 months old) if you’re paying a person rather than a company.

Send it with an original copy of the court order authorising the payment – it must have a seal.

Stop managing or close an account

A new deputy can take over management of the account if you stop being a deputy or die.

You cannot hand over management of the account - only the Court of Protection can appoint a new deputy. The new deputy will then need to apply to manage the account.

You stop being a deputy

Tell the Court Funds Office in writing if you stop being a deputy - send a copy of the letter to the Office of the Public Guardian and Court of Protection.

Close an account

You cannot close a Court Funds Office yourself (for example by moving all the money into another account) unless you have a court order that authorises you to do this.

If the person you’re deputy for dies the person dealing with the estate can apply for the money in the account to be paid out. The account will be closed.

The person you're deputy for dies

Write to the Court Funds Office to tell them if the person you’re deputy for has died. Send a certified copy of the death certificate if you can get one.

You’ll need to include certain information depending on

who’s dealing with the estate

whether there’s a will

If you’re dealing with the estate

Ask for a Certificate of Funds when you write to the Court Funds Office about the death. This shows how much money is in the account and investments.

You’ll need this information to deal with the person’s tax and estate (their money, property and possessions)

If you’re not dealing with the estate

Tell the Court Funds Office who is dealing with the estate (the personal representative) and provide their contact details.

The Court Funds Office will provide the personal representative with information and the forms required to close the account.

If the person did not leave a will

If the person died without making a will and has no living relatives, the Court Funds Office will contact the Treasury Solicitor or Solicitor for the Duchy of Cornwall or Lancaster. They will deal with the person’s money, property and possessions as an unclaimed estate.

Payments for funeral expenses

The personal representative or the person who arranged the funeral can apply for funeral expenses to be paid to the funeral provider out of the account.

Fill in form CFO FE1.

Send it to the address on the form with the funeral provider’s invoice and a certified copy of the death certificate.

Funeral expenses must be in keeping with the value of the person’s estate - they cannot include payments for:

headstones

refreshments at the funeral service

Payments for inheritance tax

The personal representative can apply for inheritance tax to be paid to HM Revenue & Customs (HMRC) out of the account.

Fill in form CFO IHT1.

Send it to the address on the form with the completed form IHT423 and certified copies of the death certificate and any will.

Special accounts currently pay 0.1% interest. The rate is not fixed - it is set by the Lord Chancellor.

Overview

Check the court order that appointed you as deputy - it tells you what you’re authorised to do.

You’ll need to apply on behalf of the person you’re deputy for to:

manage an account that was opened for them by court order, for example for money they received from a court case

open an account for them

They’ll get a special account with the Court Funds Office.

Your responsibilities

The account belongs to the person you’re deputy for. You’re the only person who can manage it on their behalf.

You must keep to your responsibilities as a deputy when you’re managing the account.

Apply

You need to apply to:

open an account for someone

manage an account for someone

You must be appointed by the Court of Protection as the person’s property and affairs deputy.

Check the details on the court order that appointed you as deputy - you’ll need the date of the order and the case number.

You’ll get a letter from the Court Funds Office within 5 working days to confirm that you’re set up to manage the account.

Your form will be returned if your application cannot be processed - you’ll be told what you can do to fix this.

Manage an account

A Court Funds Office account is called a ‘special account’ if the account holder has a deputy.

Statements

As the deputy, you’ll get statements in April or May and in October or November each year.

You can also ask for a statement at any time by contacting the Court Funds Office.

Interest and tax

Special accounts currently pay 0.1% interest. The rate is not fixed - it is set by the Lord Chancellor.

You’ll also get tax vouchers (for tax returns) with your April statement.

Change of address

Investments

You can invest in the stock market using money from the Court Funds Office account you manage if it:

holds £10,000 or more for the person you’re deputy for

is likely to hold the money for 5 or more years

The Court Funds Office makes stock market investments in companies using the Equity Tracker Index Fund (ETIF).

Write to the Court Funds Office asking them to invest the sum you require in the ETIF.

Check the value of the ETIF on the Financial Times website.

Tax

Deposits

You can pay money in to an account after you apply to manage the account.

Check the details on the court order that appointed you as deputy - you’ll need the date of the order and the case number.

Write a cheque for the amount you’re paying in, payable to the ‘Accountant General of the Senior Courts’.

You’ll get a letter from the Court Funds Office within 5 working days to confirm that it’s processed your deposit.

Your form will be returned if your deposit cannot be processed - you’ll be told what you can do to fix this.

Withdrawals

Set up payments

Fill in:

form CFO P to make a one-off payment to your bank account

form CFO R to set up or change a regular payment to your bank account

form CFO 205 to make a one-off payment to another bank account

a copy of a bank statement (less than 3 months old)

letter from your bank confirming your new bank account details

One-off payment to your bank account

A cheque will be paid into your bank account within 5 days. The money will take 3 working days to clear.

If you’re withdrawing money for a gift or charitable donation, fill in form CFO PG and send it with form CFO P.

Regular payment to your bank account

Use form CFO R to set up, amend, renew or stop a regular payment - tick the box on the form that applies.

Specify the number of months you want a regular payment to continue (up to 23 months).

Payment to another bank account

Send it with an original copy of the court order authorising the payment – it must have a seal.

Stop managing or close an account

A new deputy can take over management of the account if you stop being a deputy or die.

You stop being a deputy

Close an account

The person you're deputy for dies

You’ll need to include certain information depending on

who’s dealing with the estate

whether there’s a will

If you’re dealing with the estate

You’ll need this information to deal with the person’s tax and estate (their money, property and possessions)

If you’re not dealing with the estate

If the person did not leave a will

Payments for funeral expenses

Fill in form CFO FE1.

Send it to the address on the form with the funeral provider’s invoice and a certified copy of the death certificate.

Funeral expenses must be in keeping with the value of the person’s estate - they cannot include payments for:

headstones

refreshments at the funeral service

Payments for inheritance tax

The personal representative can apply for inheritance tax to be paid to HM Revenue & Customs (HMRC) out of the account.

Fill in form CFO IHT1.


I live in the South East and I have just taken on a 5 year old child as a foster parent. I want to know what financial support I can get from the government to help. What is the weekly allowance for my child?

The minimum allowance you’ll get depends on where you live and the age of the child you care for.

Help and support for foster parents

Training and development

You need to complete the training, support, and development standards workbook within 12 months of being approved to foster.

Contact your fostering service to find out what other training and development is available. They should help you:

with a personal development plan

take part in learning and development sessions

The Foster Carers’ Charter explains your rights as a foster parent.

You do not have a statutory right to time off work to care for foster children.

If you’re fostering for adoption you’ll be entitled to adoption pay and leave from when the child comes to live with you.

If you’re considering fostering, find out about becoming a foster parent.

Help with the cost of fostering

All foster parents get a foster care allowance to help cover the cost of caring for a child. You might get additional payments, depending on:

if the child has specific needs

how many children you’re fostering

your skills and experience

your fostering service

Contact your fostering service to find out how much you get.

Minimum weekly allowance

| Age 0 to 2 | Age 3 to 4 | Age 5 to 10 | Age 11 to 15 | Age 16 to 17

London | £155 | £158 | £177 | £201 | £235

South East | £149 | £153 | £169 | £193 | £226

Rest of England | £134 | £138 | £152 | £173 | £202

These figures are for the tax year from 6 April 2021 to 5 April 2022. They’re updated every April.

Allowance rates when the child is 18

Children stop being in care when they reach 18, even if they’re still living with you. There is no minimum allowance when your child is old enough to leave foster care.

Contact your fostering service for more information.

Expenses

You may be able to apply to your fostering service for extra money to help with things like:

school trips

holidays

birthdays

religious festivals

Tax arrangements

You should have registered as self-employed when you started to foster. You’ll need to file tax returns. Check with your fostering service what you need to do.

In your tax return, you’ll be able to claim:

a tax exemption of up to £10,000 per household

tax relief for every week you foster a child

This is known as qualifying care relief.

You may be entitled to National Insurance credits, which count towards your State Pension.

Tax exemption

In a tax year, households do not pay tax on the first £10,000 they earn from fostering. You’ll still pay tax on money you earn from a job or investment.

Tax relief

On top of the £10,000 exemption, you also get tax relief for every week (or part week) that a child is in your care. This means you do not have to pay tax on some of your earnings over £10,000.

Age of child | Tax relief

Under 11 | £200 per child

11 or over | £250 per child

Claiming benefits

Being a foster parent can affect your benefits. Check a benefits calculator to see what you’re eligible for.

If you’re claiming benefits you need to tell the organisation that pays you that you’re also getting a foster care allowance.

You can get disability benefits for your foster child if they meet the criteria. You may also be able to claim Carer’s Allowance if your foster child gets Disability Living Allowance or Personal Independence Payment.

For more help on how your benefits may change you can speak to an adviser from:

the organisation that pays you

Fosterline - a free fostering advice service

Making decisions for your foster child

Your foster child’s placement plan should tell you what decisions you can make, known as delegated authority.

There are 3 different levels to delegated authority:

day-to-day decisions like dental check ups, hair cuts, school trips, parent-teacher meetings and letting your child go to sleepovers

long-term decisions like which school a child goes to

significant decisions made by the local authority and birth parents, like surgery

If your child’s placement plan does not tell you what level of delegated authority you have you should contact your fostering service to find out.

You may not have the same level of authority for each child you foster. For example, you might foster 2 children and have the right to sign a consent form for one of them.

Going on holiday

If you do not have the authority to take your foster child on holiday you’ll need to speak to their social worker.

You’ll also need to:

tell your child’s social worker when you’ll be going and when you’ll be back

get a letter of consent from your child’s social worker for passport control (if you’re going abroad)

Medical treatment for your foster child

You may not have the right to give consent to medical treatment. Check your child placement plan to find out if you have the authority to let your foster child have:

medication

a medical examination

local or general anaesthetic

surgery

Getting support

You should get support from your fostering service, your local council and social workers. You can also get support and advice from Fosterline.

Your local council must provide your foster child with a personal adviser from age 16 or 17 to age 25. They will help your foster child move to independent living or support them to stay with you (this is called a ‘staying put’ arrangement).

Extra support is available when your foster child reaches age 16, 18 and 21.

Support from your fostering service

Your foster child gets a placement plan. This tells you about the child and their needs. The fostering service should invite you to meetings on your foster child’s progress and placement plan.

Your family should get:

access to an out of hours advice and support service

access to support groups

practical, financial and emotional support

training and a personal development plan, which is reviewed every year

an opportunity to take a break from fostering if you need it

Dealing with allegations

If an allegation is made against you or anyone in your home, your local authority must:

investigate it

support you through it

update you on progress

help resolve any disagreements

They may remove your foster child from your home or ask the person the allegation is about to leave. They will also look at the safety of any other children in your home.

Support from social workers

You’ll have contact with 2 social workers:

your foster child’s social worker - they make sure you meet the child’s needs

a supervising social worker to help and support you as a foster parent

Your supervising social worker is there to support you as a foster parent. Contact them if you need:

emotional support

to talk about any concerns or worries you have about your foster child

help to develop your skills as a foster parent

Your social workers must make sure you understand their policies on fostering, including:

how to manage your foster child’s behaviour

financial support for foster parents

complaints

They must review your approval to foster at least once a year to make sure you’re still suitable.

Social workers may decide to have some meetings without you if they think it’s best for the foster child.

Social worker visits

Your child’s social worker must visit you and your foster child:

in the first week the child comes to live with you

once every 6 weeks in the first year

every 3 to 6 months after the child has lived with you for a year

They must also visit you once a year without telling you they’re coming.

You or your foster child can ask for more visits from the social worker.

Ending a placement

You must give 28 days’ notice to your social worker if you no longer wish to be the child’s foster parent.

Support from Fosterline

Call Fosterline for free to get advice on fostering.

They can provide help and advice about fostering, including information about:

finances

training

dealing with allegations

| Age 0 to 2 | Age 3 to 4 | Age 5 to 10 | Age 11 to 15 | Age 16 to 17

Help and support for foster parents

Training and development

with a personal development plan

take part in learning and development sessions

The Foster Carers’ Charter explains your rights as a foster parent.

You do not have a statutory right to time off work to care for foster children.

If you’re considering fostering, find out about becoming a foster parent.

Help with the cost of fostering

if the child has specific needs

how many children you’re fostering

your skills and experience

your fostering service

Contact your fostering service to find out how much you get.

Minimum weekly allowance

The minimum allowance you’ll get depends on where you live and the age of the child you care for.

London | £155 | £158 | £177 | £201 | £235

South East | £149 | £153 | £169 | £193 | £226

Rest of England | £134 | £138 | £152 | £173 | £202

These figures are for the tax year from 6 April 2021 to 5 April 2022. They’re updated every April.

Allowance rates when the child is 18

Contact your fostering service for more information.

Expenses

You may be able to apply to your fostering service for extra money to help with things like:

school trips

holidays

birthdays

religious festivals

Tax arrangements

In your tax return, you’ll be able to claim:

a tax exemption of up to £10,000 per household

tax relief for every week you foster a child

This is known as qualifying care relief.

You may be entitled to National Insurance credits, which count towards your State Pension.

Tax exemption

Tax relief

Age of child | Tax relief

Under 11 | £200 per child

11 or over | £250 per child

Claiming benefits

For more help on how your benefits may change you can speak to an adviser from:

the organisation that pays you

Fosterline - a free fostering advice service

Making decisions for your foster child

There are 3 different levels to delegated authority:

long-term decisions like which school a child goes to

significant decisions made by the local authority and birth parents, like surgery

Going on holiday

You’ll also need to:

tell your child’s social worker when you’ll be going and when you’ll be back

get a letter of consent from your child’s social worker for passport control (if you’re going abroad)

Medical treatment for your foster child

medication

a medical examination

local or general anaesthetic

surgery

Getting support

Extra support is available when your foster child reaches age 16, 18 and 21.

Support from your fostering service

Your family should get:

access to an out of hours advice and support service

access to support groups

practical, financial and emotional support

training and a personal development plan, which is reviewed every year

an opportunity to take a break from fostering if you need it

Dealing with allegations

If an allegation is made against you or anyone in your home, your local authority must:

investigate it

support you through it

update you on progress

help resolve any disagreements

Support from social workers

You’ll have contact with 2 social workers:

your foster child’s social worker - they make sure you meet the child’s needs

a supervising social worker to help and support you as a foster parent

Your supervising social worker is there to support you as a foster parent. Contact them if you need:

emotional support

to talk about any concerns or worries you have about your foster child

help to develop your skills as a foster parent

Your social workers must make sure you understand their policies on fostering, including:

how to manage your foster child’s behaviour

financial support for foster parents

complaints

They must review your approval to foster at least once a year to make sure you’re still suitable.

Social workers may decide to have some meetings without you if they think it’s best for the foster child.

Social worker visits

Your child’s social worker must visit you and your foster child:

in the first week the child comes to live with you

once every 6 weeks in the first year

every 3 to 6 months after the child has lived with you for a year

They must also visit you once a year without telling you they’re coming.

You or your foster child can ask for more visits from the social worker.

Ending a placement

You must give 28 days’ notice to your social worker if you no longer wish to be the child’s foster parent.

Support from Fosterline

Call Fosterline for free to get advice on fostering.

They can provide help and advice about fostering, including information about:

finances

training

dealing with allegations

South East | £149 | £153 | £169 | £193 | £226

Help and support for foster parents

Training and development

with a personal development plan

take part in learning and development sessions

The Foster Carers’ Charter explains your rights as a foster parent.

You do not have a statutory right to time off work to care for foster children.

If you’re considering fostering, find out about becoming a foster parent.

Help with the cost of fostering

if the child has specific needs

how many children you’re fostering

your skills and experience

your fostering service

Contact your fostering service to find out how much you get.

Minimum weekly allowance

The minimum allowance you’ll get depends on where you live and the age of the child you care for.

| Age 0 to 2 | Age 3 to 4 | Age 5 to 10 | Age 11 to 15 | Age 16 to 17

London | £155 | £158 | £177 | £201 | £235

Rest of England | £134 | £138 | £152 | £173 | £202

These figures are for the tax year from 6 April 2021 to 5 April 2022. They’re updated every April.

Allowance rates when the child is 18

Contact your fostering service for more information.

Expenses

You may be able to apply to your fostering service for extra money to help with things like:

school trips

holidays

birthdays

religious festivals

Tax arrangements

In your tax return, you’ll be able to claim:

a tax exemption of up to £10,000 per household

tax relief for every week you foster a child

This is known as qualifying care relief.

You may be entitled to National Insurance credits, which count towards your State Pension.

Tax exemption

Tax relief

Age of child | Tax relief

Under 11 | £200 per child

11 or over | £250 per child

Claiming benefits

For more help on how your benefits may change you can speak to an adviser from:

the organisation that pays you

Fosterline - a free fostering advice service

Making decisions for your foster child

There are 3 different levels to delegated authority:

long-term decisions like which school a child goes to

significant decisions made by the local authority and birth parents, like surgery

Going on holiday

You’ll also need to:

tell your child’s social worker when you’ll be going and when you’ll be back

get a letter of consent from your child’s social worker for passport control (if you’re going abroad)

Medical treatment for your foster child

medication

a medical examination

local or general anaesthetic

surgery

Getting support

Extra support is available when your foster child reaches age 16, 18 and 21.

Support from your fostering service

Your family should get:

access to an out of hours advice and support service

access to support groups

practical, financial and emotional support

training and a personal development plan, which is reviewed every year

an opportunity to take a break from fostering if you need it

Dealing with allegations

If an allegation is made against you or anyone in your home, your local authority must:

investigate it

support you through it

update you on progress

help resolve any disagreements

Support from social workers

You’ll have contact with 2 social workers:

your foster child’s social worker - they make sure you meet the child’s needs

a supervising social worker to help and support you as a foster parent

Your supervising social worker is there to support you as a foster parent. Contact them if you need:

emotional support

to talk about any concerns or worries you have about your foster child

help to develop your skills as a foster parent

Your social workers must make sure you understand their policies on fostering, including:

how to manage your foster child’s behaviour

financial support for foster parents

complaints

They must review your approval to foster at least once a year to make sure you’re still suitable.

Social workers may decide to have some meetings without you if they think it’s best for the foster child.

Social worker visits

Your child’s social worker must visit you and your foster child:

in the first week the child comes to live with you

once every 6 weeks in the first year

every 3 to 6 months after the child has lived with you for a year

They must also visit you once a year without telling you they’re coming.

You or your foster child can ask for more visits from the social worker.

Ending a placement

You must give 28 days’ notice to your social worker if you no longer wish to be the child’s foster parent.

Support from Fosterline

Call Fosterline for free to get advice on fostering.

They can provide help and advice about fostering, including information about:

finances

training

dealing with allegations