Can Court of Protection annual Bond costs be expensed ?

[Mandrew]

Hi,
Apologies if this has been answered before but I cannot find a definitive answer.

We are currently in the process of applying for a Court of Protection Order for one of our parents (diagnosed with advanced dementia) which has just been approved by the court. The have asked for an insurance bond of £200K, which their nominated provider are quoting £150.

It may not seem a lot but we are extremely limited in our funding and it will have to go on a credit card.

Can we expense this annual bond fee to the parents account once the deputy ship is in place as an expense, for which it will be clearly documented in the Deputyship annual accounts. I understand we need to produce.

Thanks in advance for any help.

 

[nitram]

The bond is chargeable to your parent, can pay it and then recover it when deputyship is granted.

Security bonds for property and affairs deputies
You may have to pay to set up a ‘security bond’ before you can be appointed as a property and affairs deputy. This is a type of insurance that protects the finances of the person you’re a deputy for.
...
...
You can pay it either:

• using the person’s money
• yourself - you can get the money back from the person’s estate once you have access to it

https://www.gov.uk/become-deputy/fees .

 

[canary]

Hi @Mandrew and welcome to Talking Point
I had deputyship for my mum and, as nitram has said, I paid it and then claimed it back from mums account. This is what you are supposed to do and the Office of Public Guardians will expect this payment to be on the annual financial return.

 

[Scarlet Lady]

Am I misreading this? The COP are asking for an insurance bond of £200k ?

 

[nitram]

Am I misreading this? The COP are asking for an insurance bond of £200k ?

You are misreading.
The COP want an insurance policy that can pay out £200k if you abscond with your parent's cash.
The premium for this is £120 which is what you are being asked to pay.

Unlike an LPA where the court gives the power to the attorney with a deputyship it retains the power and only allows somebody to use it on its behalf, it retains the responsibility and therefore asks for insurance against malpractice by the deputy.

 

[Scarlet Lady]

Thank you, Nitram! (That’s a relief).