What is a Minors Trust?
Why is a Minors Trust created?
These are created if funds have been awarded to a minor as compensation for the death of a relative under a pension fund.
Minors Trusts may also be created subject to the provisions for the Pension Act under Section 71(4), where a minors trust can be set-up to assist surviving beneficiaries if the beneficiary is under the age of eighteen years. The amount of the benefit due to the minor shall be held by the trustee in a separate Trust, to be paid to them upon attainment of maturity age. The Pension Act further stipulates …that the amount shall not be part of the fund assets of the pension fund, but may be invested and applied together with those fund assets.
The trustees have the discretionary power to make payment at any time to the parent or guardian of the minor any amount from the income of the trust as the trustee thinks appropriate for the maintenance, education or welfare of the minor when absolutely necessary.
Who can be the beneficiary of a Minors Trust?
the beneficiary of a Minor’s Trust.