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You are here: BAILII >> Databases >> Scottish Law Commission >> Scottish Law Commission (Reports) >> Report on Damages for Personal Injury (Report No. 266) URL: http://www.bailii.org/scot/other/SLC/Report/2024/SLC266.image21.html |
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(1) The Children (Scotland) Act 1995 is amended as follows.
(2) In section 13, for subsection (1) substitute—
“(A1) This section applies where in any court proceedings a sum of money becomes payable to, or for the benefit of, a child under the age of 16 years.
(A2) Except where the money is an interim payment, the court must—
(a) consider a written proposal made by or on behalf of the child about how the money is to be invested, applied or otherwise dealt with for the benefit of the child, and
(b) having regard to the matters mentioned in subsection (A3), either—
(i) remit the question of the suitability of the proposal to the Accountant of Court, or
(ii) explain in writing its reasons for not doing so.
(A3) The matters are—
(a) the sum of money involved,
(b) whether the money is intended to be used to provide for the child’s care and accommodation needs and, if so, for how long,
(c) where the proposal states that the money will be held by a trust—
(i) the terms of the trust deed under which the trust is, or is proposed to be, constituted, and
(ii) the identity and qualifications of the trustees.
(1) The court may make any order relating to the payment and management of the money for the benefit of the child as it thinks fit.”.
NOTE
Section 6 implements recommendation 14 by amending section 13 of the Children (Scotland) Act 1995. Subsection (2) amends section 13(1) of the 1995 Act by substituting new subsections (A1), (A2) and (A3), which require the court to inquire how, when an award of damages becomes payable to or for the benefit of a child under the age of 16, that award will be administered in the future. The duty to inquire provides further protection for damages awarded to or for the benefit of children, to ensure that any money is properly managed until the child gains capacity to take ownership of the award.
New subsection (A2) provides that the court must consider a written proposal about how the money will be invested or applied for the benefit of the child, encouraging parties to plan appropriately (see paragraphs 5.36 to 5.38 of the Report). The court must either remit the case to the Accountant of Court or, if deciding not to remit, explain in writing why it considers it unnecessary to do so. In deciding whether to remit the case, the court must have regard to the matters set out in subsection (A3), which are: (a) the sum of money awarded, (b) the specific care and accommodation needs of the child, and (c) if a trust is proposed, the terms of the trust, and the identity and qualifications of the trustees. By exercising its discretionary power, the court can ensure that, in cases where the award is sizeable or no professional trustee is appointed, independent oversight may be provided.