Question on a Children's Trust Fund

[KayADav]

Is the family court involved in the process of setting up a trust fund for minors in the event of a personal injury claim when the Mother dies in an accident and there is no will ?
I understand that the compensation awarded is sometimes referred to by insurers as a 'University Fund' (or something like that), where an amount is held in trust until children reach adulthood.
Thanks for any feedback.
K.

[Sam101]

With a personal injury claim there is usually a solicitor acting who could best advise you and would be able to set up a suitable Trust. Usually such a Trust is simply an investment that is managed by Trustees, two at least and often family members who want only to see the benefit reaching the child or children.

When invested in the name of the Trust, then the trustees are personally liable to ensure that the investment is well managed, of low risk and can be administered in a way that will be the most benefit of the beneficiaries. have a chat with the solicitors dealing with the claim

[jaguarsuk]

The court can order it be put into trust, my cousin had an accident in a shop where she was injured as a little girl and the retailer found liable (albeit in County Court) for personal injury. The judge ordered damages and that they be put in trust until the age of 18 for her.

If a judge doesn't order damages in a personal injury case into trust for a child the damages would be paid to the estate of the late mother and then distributed as part of the estate.

In terms of death intestate (without a will), if there is a living husband, wife or civil partner they will get all the estate if it is below a value of £270,000. If there is not the entire estate will be inherited by the child (or children if there is more than one, but you only mentioned daughter).

If there is a living husband, wife or civil partner and the estate is valued at more than £270,000, the husband, wife or civil partner keeps all the assets (including property) up to £270,000 and all the personal possessions, whatever their value. The remainder of the estate will be shared with the husband, wife or civil partner getting an absolute interest in half of the remainder and the other half is then divided equally between the surviving children, so all to the daughter if she is an only child as your post would suggest.

If you are referring to a Life Insurance or other form of insurance pay out, then unless the policy specifies the daughter as the beneficiary of it then any insurance pay out will go to the estate and be subject to the rules above.

As Sam101 says in either instance (when no order had been made) a solicitor can help you set up a trust for the daughter until whatever age you think is appropriate for her inheritance.

[dslippy]

There are two sets of questions here. First as to the payment of damages, and second, if the damages are due to a deceased how is a trust created for a child.
The child may have his/her own independent claim for losses.
If a claim is made for the deceased, that wou;d normally assume a grant of probate or letters of administration to make the claim. The money goes to the estate and the PI court is finished with it.
Where money is within the estate but held for a child, the will normally establishes a simple trust model, or in the absence of a will statutory trusts (I think) apply to the child's share.
So it is not the family cour who do anything.