Deputies: manage a Court Funds Office account

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1. 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.

2. 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.

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

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

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

  4. 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’.

  5. 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.

3. 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.

Court Funds Office
enquiries@cfo.gsi.gov.uk

Court Funds Office
Sunderland
SR43 3AB

Interest and tax

Special accounts currently pay 6% 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.

Court Funds Office
Sunderland
SR43 3AB

4. 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.

Court Funds Office
enquiries@CFO.gsi.gov.uk

Court Funds Office
Sunderland
SR43 3AB

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.

5. Deposits

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

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

  2. 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.

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

  4. 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.

6. 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.

7. 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.

Court Funds Office
Sunderland
SR43 3AB

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.

8. 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.

Court Funds Office
Sunderland
SR43 3AB

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.

  1. Fill in form CFO FE1.

  2. 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.

  1. Fill in form CFO IHT1.

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