1. Our next Q&A session is on the topic of Christmas and dementia.This time we want our Q&A to involve our resident experts, you! Share tips and advice on navigating Christmas here in this thread.

    Pop by and post your questions or if you prefer you can email your question to us at talkingpoint@alzheimers.org.uk and we'll be happy to ask them on your behalf.
  1. wazzer

    wazzer Registered User

    Jun 4, 2008
    112
    North west England.
    Just a quick question here. Does anybody know the cost that the COP charge for a application to reduce the cost of a Security Bond?
     
  2. canary

    canary Registered User

    Feb 25, 2014
    10,795
    Female
    South coast
    Im afraid not, but have you tried asking them? I have found them pretty helpful every time Ive had to phone them.
     
  3. Saffie

    Saffie Registered User

    Mar 26, 2011
    22,499
    Female
    Near Southampton
    I only had to pay a one off payment security bond but surely, if and when the amount of capital held reduces to the point that the bond no longer matches it, the bond will be reduced at the next due date. If it isn't, I would write to them and point this out.
    I can't see why the OPG would charge for this.
     
  4. Katrine

    Katrine Registered User

    Jan 20, 2011
    2,839
    England
    #4 Katrine, Jan 25, 2016
    Last edited: Jan 25, 2016
    I looked into this for Scotland, so it may not be the same in England and Wales. We pay an annual caution premium (security bond) with regard to my mum's Guardianship. The level of bond was set by the court in 2014. The company that manages the bond are not legally allowed to reduce the sum protected, even though my mum's estate has reduced. I was told we would have to go back to court to have an order issued to the cautioner for the level of bond to be reduced.

    So, that's a long way of saying you need to ask the COP. The security bond provider should be able send you a schedule of premium charges against a rising scale of estate value. You will then see how much saving you could make by reducing the annual fee. In our case it was only about £250 and our solicitor said it would cost much more for him to apply to the Sheriff Court for a hearing in chambers to obtain the order. In England there may be a different procedure. Also, in our case, the Guardianship is only awarded for 3 years, so if my mum lasts that long our Guardianship will need to be re-applied for in 2017 anyway.
     
  5. nitram

    nitram Registered User

    Apr 6, 2011
    19,277
    Male
    North Manchester
  6. Saffie

    Saffie Registered User

    Mar 26, 2011
    22,499
    Female
    Near Southampton
    #6 Saffie, Jan 25, 2016
    Last edited: Jan 25, 2016
    I never did understand why I had to pay the bond via a one-off payment when I first became my husband's deputy as most seem to have to pay it annually. So you may well be right about the payment as if wouldn't have affected me.
    However, once my husband's capital reduced to below the amount where the annual supervision fee was necessary - the OPG method of charging for this changed during my deputyship - it was up to me to let the know this fact despite it being obvious from the previous year's annual report.
     
  7. nitram

    nitram Registered User

    Apr 6, 2011
    19,277
    Male
    North Manchester
    #7 nitram, Jan 25, 2016
    Last edited: Jan 25, 2016
    "I never did understand why I had to pay the bond via a one-off payment when I first became my husband's deputy as most seem to have to pay it annually. "

    My understanding is that it is up to the Court, ie Judge, to decide and that annual payments are usually asked for larger estates. Life expectancy would also be a sensible factor but I don't think this is taken into account.

    EDIT

    Went looking and on a bond provider's site found:-

    QUESTION 3: How Often Do I Need To Pay The Bond Premium?

    The premium is normally payable annually. We will write to you before each anniversary to request payment. On small estates it is possible to arrange a Surety Bond with a single payment for the lifetime of the Bond.


    https://www.deputybondservices.co.uk/FAQs.aspx
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.