Custodian Trust

In a situation where a parent dies before his children reach the age of majority, Custodian Trusts can be created to offer a trustee service for minors who are beneficiaries of the estate of their deceased parent.

On the death of the parent, a Custodian Trust is set up for the benefit of the minor children. Assets from the estate due to the children are transferred to the trustees. The trustees of the Custodian Trust deal with all payments from the trust fund for the benefit of the children until they reach the age of majority when in normal circumstances the trust will be wound up.

The advantages are numerous:

• Relieves family members/guardians from future administration and fiduciary burden;
• Protects against misappropriation by dishonest guardians;
• Executors can conclude all matters and pass obligations to new trustees.;
• New trustees can keep guardians informed at agreed intervals throughout the life of the trust;
• New trustees deal with the family and beneficiary ensuring that all requirements of the beneficiary are met during their minority;
• The trust can be created and run in the most tax efficient way to the advantage of the beneficiary.