The Children’s (Scotland) Act 1995 (“Act”) doesn’t only deal with who looks after children and makes decisions about their welfare. It also covers what happens when a child owns, or is due to inherit property or money. Section 9 of the Act is designed to ensure that a child’s property is properly safeguarded and not mismanaged until the child is old enough to manage it themselves.

This article explains how Section 9 works, when the Accountant of Court can become involved, and what parents or guardians should know if a child in Scotland is left money or property.

When Does Section 9 Apply?

Section 9 applies where:

1. A child under 16 years old owns or is due property or money,
2. The property is held by someone other than the child’s parent or guardian, and
3. Normally, the property would have to be transferred to the parent or guardian to administer on behalf of the child.

This often happens when:

• A child inherits money under a will.
• A trust or estate pays funds to a child.
• A third party (such as an executor or trustee) holds money on behalf of a child.

The Role of the Accountant of Court

The Accountant of Court is a public official in Scotland who oversees and supervises financial matters where children or vulnerable people are involved.

If a child’s property is worth £20,000 or more, the executor or trustee holding the property must apply to the Accountant of Court for directions.

If the property is worth between £5,000 and £20,000, the executor or trustee may apply for directions.

If the property is held by someone who is not an executor or trustee (for example, a relative), and its value is £5,000 or more, that person may also apply to the Accountant of Court.

What Can the Accountant of Court Do?

When an application is made, the Accountant of Court has a number of options. They can:

• Apply to court to appoint a judicial factor – a judicial factor is a person appointed by the court to manage the property.
• Direct that the property be transferred to the Accountant of Court – in which case the Accountant of Court will safeguard and administer it.
• Direct that the property be transferred to the child’s parent or guardian – so long as the parent or guardian has not already been excluded by the court.

Any transfer to a parent or guardian may be made subject to conditions. These can include restrictions such as:

• No capital expenditure without the Accountant of Court’s approval.
• An annual requirement to show the Accountant of Court bank statements and securities proving that the funds are being held safely.

When Does This Not Apply?

If the child’s parent or guardian has already been appointed a trustee under a trust deed for the property, the property can be transferred directly to them without the involvement of the Accountant of Court.

Why Does This Matter?

Section 9 is there to protect children from financial mismanagement and to ensure that their assets are preserved until they are old enough to use them. For example:

• If a 10-year-old inherits £30,000 from a grandparent’s estate, the executor must involve the Accountant of Court before releasing the funds.
• If a child inherits £4,000, the Act does not require the Accountant of Court’s involvement, but the parent or guardian still has a duty to use the money responsibly for the child’s benefit.

How Long Does the Protection Last?

This protection applies until the child turns 16, as this is the legal definition of a “child” for Section 9 purposes.

Conclusion

Section 9 of the Children’s (Scotland) Act 1995 provides a safety net for children who inherit or are otherwise entitled to significant property or money. It ensures that such property is managed either by the child’s parent or guardian, under the supervision of the Accountant of Court, or by a judicial factor if necessary.

For parents, guardians, or executors dealing with a child’s inheritance or trust entitlement, it is important to understand these rules and to comply with the obligations to safeguard the child’s financial interests.

At XK Family Law Solicitors Aberdeen, we can advise families, guardians, and executors on managing children’s property and can assist with applications to the Accountant of Court or the court itself where necessary.

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