What is a Superannuation Minor’s Trust?
Superannuation Minor’s Trusts are established after you die to hold a share of your superannuation to a child until they reach a specified age, as outlined in the trust deed.
Who can be the beneficiary of a Superannuation Minors Trust?
Generally any child of the deceased superannuation fund member who is under the age of 18 years can be the beneficiary of a Superannuation Minor’s Trust. The trust can have multiple beneficiaries.
Who can be a trustee?
Parents, siblings or friends of the beneficiary, who are over 18 years of age and Australian residents, can be trustee. A professional Trustee Company such as State Trustees, or a corporation that specialises in legal, accounting or financial planning may also be appointed.
The Superannuation Fund and its trustee will decide who is best placed to be the trustee of the Superannuation Minors Trust.
Often trustees interact with the beneficiary’s parent or guardian in matters relating to the trust, until the beneficiary turns 18 years of age.
How long can the trust operate?
The term of the trust will depend on the individual trust deed governing the trust, however the majority of trusts end when the minor reaches a specified age. This is usually 18, 21 or 25 years of age.
What can the trust funds be used for?
All expenditure from the trust must benefit the minor. When a request for funds is made, the trustee should consider:
- The amount of funds in the trust and how long the trust monies need to last
- The needs of any other beneficiaries
- Any specific rules about what purposes the funds may be used for, as outlined in the trust deed.
Often funds may be released for:
- Educational expenses
- Medical expenses
- Recreational activities.