Accounting for payments to minor

(Ravi) #1


Can you please advise whether payment made by the Trustee to a minor can be accounted as the expenses for the trust instead of distribution.

(Alexander Learmonth) #2

Hi Ravi.
I’m not sure I understand the situation here. What was the payment for, exactly, and why was it made? To whom was it paid?

(Kedia Del) #3

Hi Ravi, it depends on what the money was used for or paid out for. If the trustee is to hold the money on trust until the minor attains the age of majority, the trustee may be able to pay money out to the minor on the basis of maintenance such as education, medical, normal necessary requirement of life (provided the trust document allows it or there is legislation allowing said payment).