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. Generally any child who is under the age of 18 years can be the beneficiary of a Minor’s Trust.
Can a minor child be a trustee?
You can create a private trust under the provisions of the Indian Trusts Act, 1882, where you can be the settlor and/or the trustee for the benefit of the minor child, who is the ultimate beneficiary.
Who are the beneficiaries of a trust for a minor?
The minor is the only beneficiary of the trust. However, the trust can state that if the child dies before turning 21, unless the child gave away the trust assets in the will, then the trust assets can be paid to or held in trust for others, such as the child’s brothers and sisters.
Can a co-trustee invest in a common trust?
(3) Without limiting subsection (1), a trustee may invest trust property in a common trust fund managed by a trust company, whether or not the trust company is a co-trustee. During the administration of the trust, the trustee may be authorized to encroach upon the income and/or capital of that trust for the benefit of the child.
What should I know about setting up a trust fund for my child?
Here are some of the most common mistakes that parents make when they set up a trust for their children. When establishing a trust fund for your children, be sure to pick the right trustee, keeping in mind that a family member may not always be the right person.
Do you have to name all of your children trustees?
If you want to name an even number of your children to act together, you could select just one to make decisions. Or you may want to add a corporate trustee (that’s a bank trust department or trust company) to prevent any deadlocks if your children disagree. (If your children agree, the corporate trustee could not overrule them.)
