A Trust is a legal arrangement where a person or organisation is appointed to manage money or other assets for another person. Some are created while a person is alive, and others once a person has passed away.
Trusts are managed in accordance with the rules set out in the trust deed, court order or person's Will and Trustee Act 1893.
Each Trust has its own rules which outline:
- who manages the Trust (the Trustee)
- who will benefit from the Trust (the Beneficiary)
- when the Trust will end (Trust maturity)
- if and how the money can be used (use of Funds).
Trusts can be created for:
- children under 18 years
- people with intellectual disabilities
- people who need ongoing financial support or assistance.
Appointment of the Public Trustee
The Public Trustee can be appointed to manage a Trust when:
- nominated in a person's Will
- required to by law
- there is no-one else willing or able to undertake this role.
The Public Guardian and Trustee has a responsibility to protect Trusts by:
- undertaking regular reviews of the Trust
- investing the money based on the person's individual circumstances
- providing a financial statement to the relevant parties upon request
- providing reports to the Northern Territory Civil and Administrative Tribunal where the Trust relates to a guardianship order.
Trust types
Injury and Compensation Trust
An Injury and Compensation Trust is created by court order or settlement when a person is paid money due to an accident or injury.
This could be from:
- a workplace injury
- a car accident
- being a victim of crime.
Injury and Compensation Trusts do not usually have a maturity date. They remain in place for the person's lifetime or until all the money has been spent. The Trust is managed for the person and the money must be spent to support them.
Minor Trust
A Minor Trust is created when money or assets are given to a child or young person (a minor) and is held until they reach an appropriate age.
A Minor Trust may be established when a minor:
- receives compensation from insurance or by order of a court
- inherits money or assets, including from a superannuation fund or a gift in a Will
- receives other money or assets that need careful management.
The beneficiary of a Minor Trust is always the young person. Most Minor Trusts mature when the young person turns 18, but some may extend to a later age. However, legal guardians of a child with a Minor Trust may ask to use some funds for the child's needs before it ends. The Trustee must manage and safeguard the contents of the Minor Trust responsibly. When the Minor Trust ends, the remaining funds are transferred to the person.
Requesting money from a Trust
There may be times where a person needs to access their money from a Trust that is managed by the Public Trustee. This could be for a holiday, a birthday gift or celebration, for education, clothes, or to attend an event.
To request money from a Trust account, contact the Trust Officer on 1800 810 979 or email pgt@nt.gov.au. The Trust Officer will want to know how much money is needed and when it is needed. To help make a decision the Trust Officer may ask for:
- the purpose of the request
- details on how the money will be used
- supporting information (such as quotes), if necessary.
Support workers and guardians can assist with the request.
When making a decision about the request, the Trust Officer will look at:
- the information provided
- the affordability of the request
- the persons financial situation
- any future expenses.
Requests are typically processed within 5 business days. Once they have reviewed all the information relating to the request, the Trust Officer will make a decision. They will communicate the outcome of the decision to the person making the request.
Keeping details up to date
It is important that beneficiaries and the guardians of young people, keep their contact details updated with the Public Guardian and Trustee. This will ensure they receive annual statements and information when the Trust ends.
Where the Public Guardian and Trustee cannot locate the beneficiary of a Trust when it matures, the funds will be classed as unclaimed monies. Any person who believes the Public Trustee might be holding funds intended for them should contact the Public Trustee. Find out more about unclaimed monies.
Fees and charges
Public Guardian and Trustee may charge fees for managing a trust.