Trust Fund

celticreature

Our son will be 18 in November and the trust fund we set up at birth for when he might attend University is worth 5000.  Sadly, he is now using hard drugs and we really do not want him to have access to this fund at this time. Is there anything we can do?

[Deleted User]

What type of Trust fund? The government CTF or a private one

Malthusian

I was going to suggest spending his money on the finest rehab money can buy. In general trust funds can be spent before age 18 if it's for the child's benefit. The advantage of this is that even if it didn't get him off the drugs, the money would be gone, entirely legally.

However, the circumstances point towards it being a Child Trust Fund, in which case withdrawal before 18 is not an option (and it was a long-shot outside-the-box option anyway which relied on him consenting to expensive rehab).

(A trust set up by the parents 18 years ago seems likely to be a CTF; any other kind of bare trust would be likely to be a bit pointless, due to income above £100pa being taxed as the parents'.)

If that's the case, or if he wouldn't consent to going to expensive rehab, your options are probably limited to hoping he doesn't ask you for the money.

The legally correct answer is that you should just transfer the money to him at 18. (Assuming it is some sort of bare trust arrangement, but it seems a safe bet that it's not a more complicated type of trust, or you'd've said.) If he sued you for it, you would be liable for any costs he incurred as well as having to hand over the money.

celticreature

Hi Deleted_User,

Yes it’s a Gov trust fund 😥

celticreature

Hi Malthusian,
Thanks for your reply. Yes, it’s a Gov child trust fund which the Gov started when he was born and which we paid into monthly on top of it. He definitely won’t use it for rehab( not at the moment anyway) as he doesn’t think he has a problem 🤷‍♀️. He really has no idea about this fund. Will they just write to him near the time do you think? I might try and intercept his post....it’s so hard because I know where it’s going to go😭

[Deleted User]

celticreature said:

Hi Malthusian,
Thanks for your reply. Yes, it’s a Gov child trust fund which the Gov started when he was born and which we paid into monthly on top of it. He definitely won’t use it for rehab( not at the moment anyway) as he doesn’t think he has a problem 🤷‍♀️. He really has no idea about this fund. Will they just write to him near the time do you think? I might try and intercept his post....it’s so hard because I know where it’s going to go😭

They would already written to him at 16 as he will then have control, at 18 he can do what he likes with regards to taking it out
At 17 he would have a statement sent to him of the value, as he has the opportunity since 16 of looking after the fund.
My daughter is coming up to 18, luckily she is letting me decide what to do