What is a superannuation minor’s trust?
Superannuation minor’s trusts are set up after you die to hold a share of your superannuation for a child until they reach a particular age.
Who can be the beneficiary of a superannuation minor’s trust?
Any child (under 18 years) of the super fund member who has died can be the beneficiary of a superannuation minor’s trust.
Who can be a trustee?
The super fund and its trustee will decide who should be the trustee of the superannuation minor’s trust.
Parents, siblings or friends of the beneficiary who are over 18 years of age and Australian residents can be a trustee. They can also choose a trustee company, such as State Trustees, or a legal, accounting or financial planning organisation.
Often, trustees work with the beneficiary’s parent or guardian on matters that relate to the trust until the beneficiary is 18 years of age.
How long can the trust run?
The length of the trust depends on the instructions in the trust deed. However, a superannuation minor’s trust usually ends when the beneficiary turns 18 or 21 years of age.
What can the trust funds be used for?
All spending from the trust must benefit the child. When funds are requested, the trustee should think about:
- how much is in the trust and how long the funds need to last
- the needs of any other beneficiaries
- any rules in the trust deed about what the funds can be used for.
Funds are often used for:
- educational expenses
- medical expenses
- recreational activities.
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