A sad recent case illustrates the wisdom of appointing a professional person to assist when substantial family funds are being administered.
The case involved a disabled woman who received a settlement of £2.6 million in 1999 from Grimsby Scunthorpe Health Authority as a result of negligent treatment at the time of her birth. She suffers from cerebral palsy and requires around-the-clock care.
The money was entrusted to the girl’s mother and her mother’s (now) ex-husband to be used for her maintenance, care and other needs and was intended to provide for her for life.
However, the pair made deep inroads into the funds and were discovered to have extracted more than £500,000 from the settlement for their own purposes, living what was described as a ‘lottery winner’ lifestyle.
The couple were released on bail in October 2013 pending sentence, which the judge described as ‘inevitably a sentence of custody and of some significance’.
If a member of your family has a substantial sum which is intended to provide for them or you wish to make provision for the care of another person, the choice of who is entrusted to look after and manage the fund is critical.
Using a professional who has appropriate indemnity insurance offers a degree of protection that will give added comfort that the settlement is safe and in competent hands. Contact any of our team to talk to us about admministering a trust or settlement