Trust Funds

 

Legal vs. General Trust Fund

The University of Tasmania distingiushes it's Trust Funds into Legal (accounted for in the 80 funds source) and General Trusts (accounted for in the 81 funds source). Legal Trust Funds have specific requirements set down in:

• The wording of the deed establishing the trust or making the gift.
• The circumstances and conditions of the gift.
• The stated purpose of the gift.

Each Trust account needs to be assessed on the documentation available to determine it's status as either a Legal or General Trust.

Interest Allocation

Interest is allocated to all trust accounts based on the monthly balance of the account over the year and credited to the account at the end of the year. Interest is allocated based on the interest earned on those funds that are invested by the University. The conditions of the trust may specify that the trust must it's capital maintained so that it can continue on indefinately. For more detail on these issues please read Policy 7.6 in the Policy Manual on this website where examples are given of how this process works.