JISA and Junior Investment Funds - parental concern!

[breamster]

We have the above accounts setup for our children and they are nearing the age of getting access to them.

Whilst the kids are great and I do trust them the sums involved are for us quite significant. Maybe I'm judging them by my own experience of being their age but I want them to use it wisely.

Can I withdraw the funds to accounts in my name before they are 18? What tax concerns might I have with doing this? Currently value is £15k-20K each.

What have the wise heads of PH done? Does anyone have any thoughts or experiences they would like to share?

[chrisch77]

You can’t do anything to withdraw the funds in a JISA, as quite simply the money isn’t yours.

[supersport]

I had a long conversation with my son about not pissing it up the wall and how it would help him after university. He’s not touched it.

Going forward I started putting money into a LISA for him so he can use it for a house should he need it so it’s better than a pension.

At the end of the day if you didn’t want them to have it you shouldn’t have put it in their names. I think taking it back now isn’t the right thing to do.

I suspect you also run the risk of being caught out with the JISA although it’s unlikely.

[breamster]

chrisch77 said:

You can’t do anything to withdraw the funds in a JISA, as quite simply the money isn’t yours.

I did think that might be the case. Thanks.

[breamster]

supersport said:

I had a long conversation with my son about not pissing it up the wall and how it would help him after university. He’s not touched it.

Going forward I started putting money into a LISA for him so he can use it for a house should he need it so it’s better than a pension.

At the end of the day if you didn’t want them to have it you shouldn’t have put it in their names. I think taking it back now isn’t the right thing to do.

I suspect you also run the risk of being caught out with the JISA although it’s unlikely.

Just for clarity, if the funds do end up in my account every penny will be for them. I certainly don't want any bother from the taxman.

Fair comment about I shouldn't have put it in their names but 15/16 years ago when most of the money was transferred I didn't give it much thought. Thankfully both kids are quite good. I don't think the eldest is likely to become best mates with the local landlords but I do worry he would end up with a superb guitar collection.

[alscar]

We set up Investment Trust accounts ( originally with F&C ) when all 3 of ours were born ,with a lump sum and left them there. When they turned 18 we were “ automatically “ deleted as Trustees and the accounts moved into their sole names.
They did nothing with them.
The 2 eldest ( by then in their late twenties ) then sold them with the proceeds going into a house purchase for one and helping the other with his music.
The youngest ( now 26 ) still has his and whilst he looks at the statements has done nothing other than to tell me to look at it but will probably cash his in when he buys a house.

[bitchstewie]

Nope.

As said it's their money.

The reasons it's their money is so parents with nefarious motives can't do what you're asking about but then spend it on themselves etc.