If your child is terminally ill you can take money out of their Child Trust Fund account. If they die, the money passes to whoever inherits their estate (property and possessions).
If your child is terminally ill
‘Terminally ill’ means they have a disease or illness that’s going to get worse and are not likely to live more than 6 months. Only the registered contact can take money out of the account.
If you live in England or Wales, you have 6 months from the date of your child’s diagnosis to take money out of the account.
If you live in Northern Ireland, you have 12 months from the date of your child’s diagnosis to take money out of the account.
If you live in Scotland, there’s no time limit for taking money out of the account.
What you need to do
Fill in the terminal illness early access form to let HM Revenue and Customs (HMRC) know that:
- your child is terminally ill
- you want to take the money out of the account
You’ll need to provide evidence that your child is terminally ill.
If your child dies
The money in the account will be paid to the person who inherits the child’s estate. This is often one of the child’s parents, but if your child was married, it could be their husband or wife.
If you get Child Benefit for a child who has died this can still carry on for a short time.
What you need to do
Tell the Child Trust Fund account provider. They’ll usually need proof, for example the death certificate.
