The general rule is that no money can be withdrawn from a Child Trust Fund (CTF) account until the child holding the account is 18. The exception to this is where the child is terminally ill. The Government wants children who are terminally ill to be able to benefit from the money in their CTF accounts. So HM Revenue & Customs (HMRC) will allow early access to the CTF account where a child is terminally ill.
If your child is terminally ill and you would like to take the money out of their CTF account to use for your child, you should contact the CTF Helpline (see contact us button at the top of the page) to find out how. You will be asked to provide evidence of the terminal illness either by a claim to Disability Living Allowance under the Special Rules arrangements or by other evidence from a medical practioner.
Once evidence of the terminal illness has been confirmed, the registered contact (the person who manages the CTF account for the child or the child if over 16) will be able to withdraw money from the CTF account.
Definition of terminal illness
The CTF uses the definition of “terminally ill” in section 66(2) of the Social Security Contributions and Benefits Act 1992: a person is “terminally ill” at any time if at that time he or she suffers from a progressive disease and his or her death in consequence of that disease can reasonably be expected within 6 months.
Evidence of terminal illness
Where the child holding the CTF account is receiving Disability Living Allowance (DLA) under the Special Rules arrangements for the terminally ill, no further evidence will be required. In this case, the responsible person/person with parental responsibility, the child (if over 16) or the local authority if the child is being looked after should contact the Child Trust Fund Office (CTFO) (see contact us button at top of page) and provide the relevant details so that this information can be checked with the Department for Work and Pensions (DWP).
More about DLA for a child under 16 on the DWP website
More about DLA for a person aged 16 or over on the DWP website
Where the child has not been awarded DLA under the Special Rules, the CTFO will require written evidence that the child is terminally ill as defined above and will forward this evidence to DWP’s medical services provider for checking. This will ensure that the same body considers all terminal illness claims.
Informing the provider
Once the DLA Special Rules award or other evidence of terminal illness has been confirmed, HMRC will write to the person who requested access to the account informing them that this has been granted.
HMRC will also advise the provider to grant early access to the registered contact. Providers will be given a phone number to call in case the registered contact requests a withdrawal before the provider has received confirmation from HMRC.
Child with an account with no registered contact
If HMRC opened the child’s CTF account and nobody has become the registered contact, a person with parental responsibility for the child will need to apply to manage the account before they can access the money.
FAQ
Further information on early access for terminally ill children
