Trust fund advancements
Trust funds can be used for the beneficiary’s maintenance, education and advancement in life. When considering how funds are used, we take into account the financial position of the carer.
How do we advance funds from the Trust?
Funds may be released for the person’s benefit while the Trust continues.
This is generally until a child turns 18 years, but can continue if a person is not able to look after their own affairs.
To make things easier for you, we often allow a fixed amount for routine expenditure. We call this ‘maintenance’ and we ask for your help to work out the amount paid. This can be paid weekly, fortnightly or monthly depending on the child’s needs. We may require written details about proposed spending before we decide to advance funds because we need to have a detailed record of how we meet our obligations as Trustee.
Our criteria for advancing funds have been formed over the many years we have administered the thousands of Trusts in our care. Each advance of funds must be carefully considered to ensure the person’s financial interests are fully protected, noting that a Trust can last a number of years. This requires careful planning by us in conjunction with parents/carers.
It is important that you do not incur expenses before you talk to us about advancing funds. For instance, purchase of a car is not generally approved unless the person holds their provisional driving licence and can demonstrate a practical need for a motor vehicle, or the car is needed by the parent/carer for the child’s benefit. It is also important that all receipts are kept for any purchases made.
How can I request an advance of funds from the Trust?
Advances from the trust fund can assist in the child’s maintenance, education and benefit. However a parent has the legal responsibility to provide for their child.
For carers/guardians, we need to find out details of benefits and allowances they may receive for the child so we can properly balance the use of the fund.
We may require written details about proposed spending before we decide to advance funds because we need to have a detailed record of how we meet our obligations as Trustee.
Our criteria for advancing funds have been formed over the many years we have administered the thousands of Trusts in our care.
Before we can make payments from the Trust we require parents/carers to complete a Trust Declaration form, and if regular payments are required a Maintenance Application form.
Both the Trust Declaration and Maintenance Application are Statutory Declarations, and the parent’s/carer’s signature must be witnessed by a Justice of the Peace.
|Trust Declaration form||Maintenance Application form|
Ask your client service team for this form to advance funds from a court ordered trust.
This is to make sure a parent/carer understands their responsibility to use any funds paid to them only for the maintenance, education, advancement or sole benefit of the child.
The form also requests details of the parent’s/ carer’s income.
|Ask your client service team for this form if regular maintenance payments are needed.|
Earnings generated over time.