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Children under 18 years old are sometimes awarded money as part of a court case or hearing. This money is held for them by the Court Funds Office. Find out how the money is dealt with and how it can be accessed.
When a court orders money to be paid to a child, the Court Funds Office will open an account and look after the money. Because a child can’t represent themselves in court, they must have a ‘Litigation Friend’. This person is usually a parent or guardian and is appointed by the court to act in the child’s best interest.
The money will be held until the child’s 18th birthday (known as date of majority), unless a court order instructs otherwise.
The court will decide the best way for the money to be invested. The court will consider things like how much was awarded and how long it is expected to be held in court.
Payments can be made into children’s accounts if they are awarded money as a result of a court case. This is called ‘lodgment’.
You can find out more information about payments into a Court Funds Office account using the link below.
The court that settled the original case instructs the Court Funds Office about what to do with any money held for a child. This includes what happens once the child reaches 18 years of age.
One month before the child’s 18th birthday, the Court Funds Office will write to the child. The letter will explain how they can get their money once they turn 18.
The court can decide that the child can apply directly to the Court Funds Office to receive their money. The child will then be sent a form to complete. This must be signed by a witness who is not a relative but who knows the child, such as a teacher or doctor.
The court might also decide that the child needs to apply to them directly in order to get any money. The child will be sent a letter explaining this and what they need to do next.
The Court Funds Office will only pay the money out once they receive the completed form or instructions from the court to make the payment. Once the instructions have been received, the payment is usually made within five working days.
If a child’s account includes any investments (known as equities), they must either be sold or transferred into the child’s name once they reach 18.
If a child would like to receive some of the money before he or she is 18, their Litigation Friend can apply on their behalf. This could be for a regular payment or a one off payment. The application must be made to the court where the case was originally settled.
In most cases, the Litigation Friend will be asked to explain to the court what the money is for and why the child needs it. For example, if it is for a computer, they will also be asked to provide evidence of the cost of the computer. This could be clippings from a magazine or website with a picture and price of the computer.
The application for a payment will be considered by a judge. They may wish to talk with the Litigation Friend or the child before making their decision.
There may be a fee for making the application and you should check this with the court beforehand.