When a child dies, the money they are entitled to for a Child Trust Fund account will go to whoever inherits their estate (along with any assets belonging to the child). This is the child’s personal representative, usually the child’s parents – but could be the husband or wife if the young person was married.
The money would then belong to the parent or spouse and he or she will need to declare it as part of their assets. The normal rules for income-related benefits and Tax Credits would then apply. The threshold above which capital reduces the amount of benefit payable increased to £6,000 from April 2006. If you have capital above £6,000 then you may have some reduction in your benefits.
If you have opened a Child Trust Fund account
If you have a Child Trust Fund voucher but have not opened an account
If you do not have a Child Trust Fund voucher and have not claimed Child Benefit
