Child Trust Fund: your child is terminally ill or dies

You can take money out of your child's Child Trust Fund (CTF) account if they are terminally ill. If your child has died, money in your child's account usually passes to whoever inherits the child's estate. Find out what you need to do to get the money.

Your child is terminally ill

You can only take money out of the CTF account before your child is 18 if they are terminally ill. This means that they have a disease or illness that is going to get worse and are likely to die within six months.

Who can take the money out?

Only the registered contact can take the money out. The registered contact is the main contact point for the account.

If there isn't a registered contact, then whoever has parental responsibility for the child will need to apply to the provider to manage the account. 

How to take the money out

Contact the CTF Helpline to let them know that:

• your child is terminally ill
• you want to take money out of the CTF account 

You will need to provide evidence that your child is terminally ill.

If your child gets Disability Living Allowance (DLA) because of their illness, tell the CTF Helpline when you contact them.

If your child doesn’t get DLA, HM Revenue & Customs (HMRC) will send you a form for your doctor to complete and return to the Child Trust Fund Office.

What happens next

HMRC will let you and the provider know if you can take the money out of the account.

Your child has died

The money in the account will be paid to the person who 'inherits' the child's estate (their property and possessions). This is often one of the child’s parents, but if your child was married, it could be their husband or wife.

If you weren't able to open the account before your child died, HMRC will still pay you what your child was entitled to. 

If you get Child Benefit for a child who has died this can still carry on for a short time. It may also help with any extra costs you face at this time.

What you need to do

This will be a very difficult time for you. If your child has died, please do your best to do the following:

• if the account has already been opened - tell the account provider
• if you get Child Benefit for the child who has died - tell the Child Benefit Office
• if you haven't opened an account yet - tell the Child Trust Fund Helpline

The account provider will usually need proof, for example they may ask for the death certificate.

More useful links

Provided by HM Revenue & Customs who administer the Child Trust Fund