NICO Pension Services Company offers Minors Trust fund administration services.

What is a Minors Trust?

A Minor’s Trust is designed to manage and protect assets for a child until they reach a specified age. Some minor trusts are intended to provide funds to benefit a minor during childhood whereas others may not allow any expenditure, with the goal being simply to hold and protect funds until the minor reaches adulthood. Some trust deeds specify that trust funds may only be used for specific purposes, such as education, or medical expenses, particularly in instances where a minor has a disability or illness.

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 97, 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?

Generally any child who is under the age of 18 years can be
the beneficiary of a Minor’s Trust.

Who can be a trustee?

The Minors Trust fund is administered by NICO Pension Services as trustees or by the employer. They work hand-in-hand with the parents, guardians, siblings or friends of the beneficiary, who are over 18 years of age.