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Ask Deborah Awyzio Your Own Question
Deborah Awyzio
Deborah Awyzio, Solicitor
Category: Australia Law
Satisfied Customers: 863
Experience:  Bachelor of Laws (QUT), BIT (QUT), Family Law Accredited Specialist, over 12 years experience
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I am the trustee sons trust account which he obtained

Customer Question

I am the trustee for my sons trust account which he obtained through a death benefit payment for his fathers superannuation. Can I purchase a house for him to live in? He is 16 years old. He gains the full trust at 18. I will not be living with him.
Submitted: 2 years ago.
Category: Australia Law
Expert:  James D. Ford replied 2 years ago.
Hi, the terms of the trust through which you hold the money on your son's behalf.. normally specify what powers you have.... If a trust deed specifically granted you these powers, then you could purchase the house for him to live in. There may also be a power for you to borrow money for part of the purchase, and use trust funds to make interest payments. If these powers are not contained in a trust deed.... then the situation may be regulated by the Super Fund Trust Deed that has paid the money to you to be held on trust... or by Super Legislation, or if you can provide me with your location... State of Territory based Trustee legislation. As I assume you have been provided the money, as a "bare" trust.. with no specific Trust Deed to grant you any powers... the answer will not be as simple as you would like. You have already determined this... that is why the Solicitor you talked to has recommended a barrister's opinion on the matter. If we work together, we should be able to get to the bottom of the matter... for much less than the $2k you have been quoted. I will send you an offer of a phone call to start with, and we can proceed from there. Kind regards, James
Expert:  James D. Ford replied 2 years ago.
Hi, the terms of the trust through which you hold the money on your son's behalf.. normally specify what powers you have.... If a trust deed specifically granted you these powers, then you could purchase the house for him to live in. There may also be a power for you to borrow money for part of the purchase, and use trust funds to make interest payments. If these powers are not contained in a trust deed.... then the situation may be regulated by the Super Fund Trust Deed that has paid the money to you to be held on trust... or by Super Legislation, or if you can provide me with your location... State of Territory based Trustee legislation. As I assume you have been provided the money, as a "bare" trust.. with no specific Trust Deed to grant you any powers... the answer will not be as simple as you would like. You have already determined this... that is why the Solicitor you talked to has recommended a barrister's opinion on the matter. If we work together, we should be able to get to the bottom of the matter... for much less than the $2k you have been quoted. I will send you an offer of a phone call to start with, and we can proceed from there. Kind regards, James