Child’s investment
Discussion
Morning all, first time post in the finance section But have seen some really helpful posts recently so thanks all in advance.
My partners nan has recently passed away and has left strict instructions in the will to leave the grandchildren £20k whilst not being able to touch it until they are 25. Current ages for the 3 that aren’t 25 are 12, 10 and 8. Question is where’s the best place to lock away that kind of money and is there any way to protect it until 25, I’ve seen lots online about 18 being the maximum age
Thanks all
My partners nan has recently passed away and has left strict instructions in the will to leave the grandchildren £20k whilst not being able to touch it until they are 25. Current ages for the 3 that aren’t 25 are 12, 10 and 8. Question is where’s the best place to lock away that kind of money and is there any way to protect it until 25, I’ve seen lots online about 18 being the maximum age
Thanks all
silverous said:
We put money for our kids into a shares ISA in my wife's name, I think with a Children's ISA they can get their mitts on it at 18....problem is can you have it in an adults name and not be breaching the will in some way?
Putting it in your wifes name uses up her allowance.If the kids dont know about the ISA in their name then how can they get their mitts on it
The JISA allowance is currently £4,368 per year so the £20k would have to be drip fed in if you went down that route.
KTF said:
Putting it in your wifes name uses up her allowance.
If the kids dont know about the ISA in their name then how can they get their mitts on it
The JISA allowance is currently £4,368 per year so the £20k would have to be drip fed in if you went down that route.
Doesn't the JISA get handed over to them at 18 automatically by the provider? I appreciate it uses up wife's allowance, a nice problem to have to have too much money and not enough ISA allowances ! If the kids dont know about the ISA in their name then how can they get their mitts on it
The JISA allowance is currently £4,368 per year so the £20k would have to be drip fed in if you went down that route.
Exactly re: JISA, so Adult ISA helps?
KTF said:
If the kids dont know about the ISA in their name then how can they get their mitts on it
If you are suggesting a JISA achieves this then somehow I think they find out.....https://www.youinvest.co.uk/faq/what-happens-when-...
If you mean keep it in an adult ISA they don't know about.....exactly.
KTF said:
I believe they get added to the account as they can then theoretically access it.
But its easy enough to intercept the letter (or whatever) telling them this is the case until you feel they are old enough to actually have it.
Per that article it will be frozen if they don't respond, not sure you'd want a frozen ISA.But its easy enough to intercept the letter (or whatever) telling them this is the case until you feel they are old enough to actually have it.
silverous said:
Per that article it will be frozen if they don't respond, not sure you'd want a frozen ISA.
Other providers may be different. I have a Vanguard JISA and it says that when they turn 18, it will transfer to an 'adult' ISA and an account is opened in their name as per any other application.From memory this is all done online so you could do it on their behalf and keep quiet about it.
Personally I am not worrying about it as its a long way off at the moment.
Junior ISAs have the obvious tax advantages of an ISA, but - and it's a big but - legally the child will be notified of this account when they turn 16 and can manage it, and when they turn 18 the account is converted into an ISA and they can fully manage and even withdraw from it.
In this situation, you;d probably be best investing in a general investment account in the parent's names and designated or held in trust in favour of the child (the beneficiary). That gives the parents control over the assets.
If you have an independent financial adviser then speak to them. If not, there's plenty options to invest direct with someone like Fidelity, Hargreaves Lansdown, AJ Bell, Best Invest, Vanguard, etc.
In this situation, you;d probably be best investing in a general investment account in the parent's names and designated or held in trust in favour of the child (the beneficiary). That gives the parents control over the assets.
If you have an independent financial adviser then speak to them. If not, there's plenty options to invest direct with someone like Fidelity, Hargreaves Lansdown, AJ Bell, Best Invest, Vanguard, etc.
I've just been pipped to the post. A General Investment Account (GIA) could be a solution that satisfies the terms of the will.
You can open the accounts in their names and have full control over this until you hand them over when they reach 25.
Their personal tax allowances should absorb and income and capital gains and you could therefore avoid any tax.
You can open the accounts in their names and have full control over this until you hand them over when they reach 25.
Their personal tax allowances should absorb and income and capital gains and you could therefore avoid any tax.
Lots of really useful information there so thanks everyone!
Julian I will look into a general investment account, something I hadn’t heard of before so thank you!
Re the JISA comments, that was my first initial idea however I remember my childhood isa sent me a letter at 16 and I could access at 18, which I then continued to drain on alcohol and good times wish whilst fun, wasn’t the most beneficial later in life!
Julian I will look into a general investment account, something I hadn’t heard of before so thank you!
Re the JISA comments, that was my first initial idea however I remember my childhood isa sent me a letter at 16 and I could access at 18, which I then continued to drain on alcohol and good times wish whilst fun, wasn’t the most beneficial later in life!
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