Setting up a Lifetime ISA for my son
Discussion
I'm looking at LISAs for my 19yo son as we want to put some inherited money his way for when he buys a house in 7-10 years. But I see that only the LISA holder can pay into it. As a parent, I cannot pay in.
So, would there be any issue in him having a second bank account solely for the purpose of me transferring £333 a month into it and then that £333 gets transferred to the ISA.
He does already have an HSBC account, but I'd prefer something separate that he knows he should not dip into, even if it is possible.
Whilst the separate account may create a more impactful ‘separation’ of the money, it seems pointless if the funds are then going to just be transferred out to the LISA anyway.
I get you don’t want them to just fritter the money away, but once you give them the money, it is theirs to do what they want with. Whether in their normal current account, a seperate account, or the LISA which they could access anyway (with penalties).
Could you help them set up a standing order from their current account to their LISA, and you pay in to their current account the day before?
Ultimately you need to sit down and have the conversation about being responsible with money, and agree what you’d like. But they are an adult, and this money is a gift, so you also need to accept you are handing over control and step away.
I get you don’t want them to just fritter the money away, but once you give them the money, it is theirs to do what they want with. Whether in their normal current account, a seperate account, or the LISA which they could access anyway (with penalties).
Could you help them set up a standing order from their current account to their LISA, and you pay in to their current account the day before?
Ultimately you need to sit down and have the conversation about being responsible with money, and agree what you’d like. But they are an adult, and this money is a gift, so you also need to accept you are handing over control and step away.
Personally mine having to grow some backbone and make their way themselves, Like I did . Ok I paid everything from Private schooling and thru uni like I got ,(except our Uni was largely free) and I'll be there to pick up the pieces if it all goes pear shaped. Untold riches will be available when I'm dead.
gmaz said:
I'm looking at LISAs for my 19yo son as we want to put some inherited money his way for when he buys a house in 7-10 years. But I see that only the LISA holder can pay into it. As a parent, I cannot pay in.
So, would there be any issue in him having a second bank account solely for the purpose of me transferring £333 a month into it and then that £333 gets transferred to the ISA.
He does already have an HSBC account, but I'd prefer something separate that he knows he should not dip into, even if it is possible.
That's how my dad set it up for me and my sisters. No issues.So, would there be any issue in him having a second bank account solely for the purpose of me transferring £333 a month into it and then that £333 gets transferred to the ISA.
He does already have an HSBC account, but I'd prefer something separate that he knows he should not dip into, even if it is possible.
Gassing Station | Finance | Top of Page | What's New | My Stuff