Why would I need a children's trust?
A children's trust is used if a parent would like a child to inherit a gift at a specified age or to specify how the trustee can apply any monies prior to age 18 or a specific age. Although a child can inherit a gift made in a will at the age of 18, many parents feel that it is better to have a ‘trustee’ look after the money until the child has reached a specific age.
A trust for your children can be set up in order to give the trustees certain powers and directions in managing the money or assets for the benefit of nominated children.
These powers and directions allow the trustee to apply income and capital for the benefit of named children usually for:
- General Living [clothing spending money etc];
- Education – Schooling and Training;
- Education – Sporting [includes club fees, training and equipment];
- Education – Life skills [driving lessons is an example];
- Education – Experience [Clubs, travel and excursions are an example];
- Assist in acquiring a car;
- Assist in acquiring a house; or
- Assist in setting up house.
Many parents want to control when their children receive their inheritance as they believe that it may be better for the child to reach a certain age when they are able to accept the responsibility of managing their own finances.
Our children’s trust allows the Will maker to set the age when the child is to receive their inheritance.