Caution (pronounced Cayshun)

Finding Caution – what this means and what it costs

When granting a Guardianship or Intervention order, a Sheriff has to request that the person being appointed “find caution”. This is a sum of money to be paid by the person being appointed which is effectively an insurance premium against improper or mistaken actions taken by the guardian causing loss to the adult. Caution is effectively obtained by paying a premium to an insurance company. Lay, non- professional guardians may find it difficult to find caution, which is provided by a limited number of insurance companies, and often only a professional, such as a lawyer. Fortunately the Sheriff does have discretion to not ask for Caution if the person is suitable to be appointed but is unable to arrange caution. The cost of caution largely depends on the value of the adult’s property and therefore the risk associated with dealing with it. Typically however it can run at 5% of the value of the property – although each case is considered separately.