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  • FIRST POST
    • mbchfmb2
    • By mbchfmb2 9th Jan 18, 4:34 AM
    • 2Posts
    • 0Thanks
    mbchfmb2
    Savings for nehew / niece
    • #1
    • 9th Jan 18, 4:34 AM
    Savings for nehew / niece 9th Jan 18 at 4:34 AM
    I want set up some kind of savings account for my niece / nephew but I'm not sure of the best way to do it. I've thought about a Junior ISA but would prefer to not just let them have access to it at 18. Ideally I'd like to let them have access to the money at 21 or when they want to use it for education / deposit etc
Page 1
    • Sea Shell
    • By Sea Shell 9th Jan 18, 6:50 AM
    • 458 Posts
    • 467 Thanks
    Sea Shell
    • #2
    • 9th Jan 18, 6:50 AM
    • #2
    • 9th Jan 18, 6:50 AM
    I don't think as Aunt/Uncle you're able to open any accounts yourself. It can only be parents or Grandparents (not fair in my opinion). So really you have to either arrange it via them, or keep the money yourself and "ringfence" it. But that can cause it's own issues if you were to pass away unexpectedly.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • Keep pedalling
    • By Keep pedalling 9th Jan 18, 10:07 AM
    • 4,330 Posts
    • 4,706 Thanks
    Keep pedalling
    • #3
    • 9th Jan 18, 10:07 AM
    • #3
    • 9th Jan 18, 10:07 AM
    How old are they now?
    • Kim_13
    • By Kim_13 9th Jan 18, 9:17 PM
    • 1,670 Posts
    • 1,905 Thanks
    Kim_13
    • #4
    • 9th Jan 18, 9:17 PM
    • #4
    • 9th Jan 18, 9:17 PM
    With child savings accounts, the money is legally the child's, so they can withdraw it without permission when the account conditions allow.

    To allow you to ensure the money is used as you intend, keeping separate accounts in your own name may be the best thing for you (and would avoid you needing to go via your parents or your brother/sister.)

    For reference, here is the MSE guide on children's savings accounts: https://www.moneysavingexpert.com/savings/child-savings-tax-free
    Sealed Pot 11 #520 ~ /£100
    VSP 2018 #9 ~ £0/£180.00
    CCCC 2018 #1 ~ £8.00/£180.00

    I'm a Board Guide on the Savings and Investments , Budgeting and Bank Accounts , Credit Cards and Marriage, Relationships and Families boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. Please remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this.) Any views are mine and not the official line of MoneySavingExpert.com
    • xylophone
    • By xylophone 9th Jan 18, 11:21 PM
    • 24,033 Posts
    • 14,039 Thanks
    xylophone
    • #5
    • 9th Jan 18, 11:21 PM
    • #5
    • 9th Jan 18, 11:21 PM
    Iff the savings are in the child's own name with you or any body else as bare trustee, the child has the absolute legal right to access and control at the age of 18 (16 in Scotland).

    Yo may prefer to regard your own ISA as "earmarked" for savings that you plan to give to your niece and nephew at the appropriate time.

    Your will should reflect your desire to make these gifts ( in the unfortunate case that you should pass on before the children reach the age you consider appropriate).
    • Brain1600e
    • By Brain1600e 16th Jan 18, 11:26 AM
    • 1 Posts
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    Brain1600e
    • #6
    • 16th Jan 18, 11:26 AM
    Trustee Savings
    • #6
    • 16th Jan 18, 11:26 AM
    Hi, I have a similar issue in relation to Savings on behalf of my nephew to whom I am Trustee. My sister passed away recently and my nephew is the sole surviving heir to her estate which includes a substantial amount of cash. The terms of my sister's Will appoint me as Trustee and the assets from the estate are to be held in trust until my nephew reaches the age of 30. He is currently 25 years of age and a full time student. I want to know the best savings account for the cash as I don't want the money mixed up with my own for tax purposes, but at the same time I want to obtain the best return using my nephews own tax status.
    • soulsaver
    • By soulsaver 16th Jan 18, 12:05 PM
    • 1,542 Posts
    • 573 Thanks
    soulsaver
    • #7
    • 16th Jan 18, 12:05 PM
    • #7
    • 16th Jan 18, 12:05 PM
    Someone took the P out of your nephew...
    • xylophone
    • By xylophone 16th Jan 18, 1:13 PM
    • 24,033 Posts
    • 14,039 Thanks
    xylophone
    • #8
    • 16th Jan 18, 1:13 PM
    • #8
    • 16th Jan 18, 1:13 PM
    Hi, I have a similar issue in relation to Savings on behalf of my nephew to whom I am Trustee.
    You will need to have regard to the precise terms of your late sister's will- if you are not sure of how to interpret them, you will need to see a solicitor expert in wills and trusts.

    You will need to know whether the assets have (or have not) "indefeasibly vested" in your nephew - is it "when he reaches 30" or "if he reaches 30"?


    See below


    https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem1563

    If indefeasibly vested then the assets are held in Bare Trust - your nephew is already over 25 and well past the age of majority.

    If not, then the Trust is of a different type.

    https://www.gov.uk/trusts-taxes/types-of-trust

    https://www.gov.uk/guidance/trust-record-keeping-for-tax-purposes

    You will need to know because of the tax angle.

    You may also find that establishing an account in the name of a Trust can be difficult.



    You might try Natwest or Metro Bank.

    http://trustsdiscussionforum.co.uk/t/bank-account-for-a-trust/3865/2
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