5. If your child is terminally ill or dies

If your child is terminally ill you can take money out of their Child Trust Fund (CTF) account. If they die, the money passes to whoever inherits their estate (property and possessions).

If your child is terminally ill

‘Terminally ill’ means they have a disease or illness that’s going to get worse and aren’t likely to live more than 6 months. Only the registered contact can take money out of the account.

What you need to do

Fill in the terminal illness early access form to let HM Revenue and Customs (HMRC) know that:

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

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

If your child dies

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

If you get Child Benefit for a child who has died this can still carry on for a short time.

What you need to do

Tell the CTF account provider. They’ll usually need proof, eg the death certificate.