Children's trusts (also called Minor's trusts) are designed to manage and protect assets for a child until they reach a specified age.

Any child under the age of 18 is considered to be a minor in South Australia.

There are a number of ways a trust can be created for a minor:

• the child inherits assets from an estate and the Will specifies the inheritance is to be held in trust until they reach a particular age
• funds have been set aside by a family member for the benefit of the minor (eg as an education fund)
• funds have been awarded through a court to a minor as compensation for the death of a relative
• superannuation benefits have been paid to a minor from the entitlements of a family member who has died
• an insurance company or the court award money to a minor as compensation for an injury.

A minor's trust allows for a trustee to hold assets in trust for a specified time period. This could include when a child:

• reaches a particular age
• passes a particular milestone
• successfully completes an event (eg completing tertiary education).

In the majority of cases, the trust ends when the minor reaches a specified age - this is usually 18, 21 or 25 years of age.

When appointed as trustee for a minor's trust, the Public Trustee is obligated to adhere to conditions of the instrument creating the trust.

In most cases this allows for trust expenditure:

• at the trustee's discretion
• for a specific purpose (such as medical or education expenses).

In some cases, a trust instrument does not allow any expenditure and is designed to simply hold and protect funds until the child reaches adulthood or a specific event or milestone.