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  • FIRST POST
    • tazwhoever
    • By tazwhoever 5th Feb 18, 2:04 PM
    • 842Posts
    • 201Thanks
    tazwhoever
    Money for children
    • #1
    • 5th Feb 18, 2:04 PM
    Money for children 5th Feb 18 at 2:04 PM
    I would be getting some money for my children about 20K for their higher education and future. It would be too much for their child trust fund accounts.

    Iím thinking about opening another trust account and I becoming trustee with the child name.

    There are any other ways, investments, etc. which donít affect means tested benefits?

    It will be unfair to receive this money for children's future education, and we spend it on familyís food and rent.

    Thanks
Page 1
    • Comms69
    • By Comms69 5th Feb 18, 2:10 PM
    • 2,393 Posts
    • 2,262 Thanks
    Comms69
    • #2
    • 5th Feb 18, 2:10 PM
    • #2
    • 5th Feb 18, 2:10 PM
    I would be getting some money for my children about 20K for their higher education and future. It would be too much for their child trust fund accounts.

    Iím thinking about opening another trust account and I becoming trustee with the child name.

    There are any other ways, investments, etc. which donít affect means tested benefits?

    It will be unfair to receive this money for children's future education, and we spend it on familyís food and rent.

    Thanks
    Originally posted by tazwhoever

    how are you getting this money?
    • batg
    • By batg 5th Feb 18, 3:03 PM
    • 54 Posts
    • 57 Thanks
    batg
    • #3
    • 5th Feb 18, 3:03 PM
    • #3
    • 5th Feb 18, 3:03 PM
    unfair?
    In what way?
    • McKneff
    • By McKneff 5th Feb 18, 3:13 PM
    • 35,847 Posts
    • 46,163 Thanks
    McKneff
    • #4
    • 5th Feb 18, 3:13 PM
    • #4
    • 5th Feb 18, 3:13 PM
    Is the money being gifted to the children
    Or is it being given to you and you are giving it to your children

    Are you on benefits or anything like that. I dont understand your statement about food and rent if it is their money
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
    • poppy12345
    • By poppy12345 5th Feb 18, 3:20 PM
    • 2,091 Posts
    • 1,980 Thanks
    poppy12345
    • #5
    • 5th Feb 18, 3:20 PM
    • #5
    • 5th Feb 18, 3:20 PM
    I would be getting some money for my children about 20K for their higher education and future. It would be too much for their child trust fund accounts.

    Iím thinking about opening another trust account and I becoming trustee with the child name.

    There are any other ways, investments, etc. which donít affect means tested benefits?

    It will be unfair to receive this money for children's future education, and we spend it on familyís food and rent.

    Thanks
    Originally posted by tazwhoever
    Do you claim Income Related benefits? Is this money being given to you or to your children?
    • tazwhoever
    • By tazwhoever 5th Feb 18, 3:25 PM
    • 842 Posts
    • 201 Thanks
    tazwhoever
    • #6
    • 5th Feb 18, 3:25 PM
    • #6
    • 5th Feb 18, 3:25 PM
    Is the money being gifted to the children
    Or is it being given to you and you are giving it to your children

    Are you on benefits or anything like that. I dont understand your statement about food and rent if it is their money
    Originally posted by McKneff
    I guess a cheque for each child, payable to each child. Sorry to be a layman, what's a gifted to a child?

    "I dont understand your statement about food and rent if it is their money" It's for their future education but it's seems it would affect the means tested benefit.
    • xylophone
    • By xylophone 5th Feb 18, 3:27 PM
    • 24,514 Posts
    • 14,362 Thanks
    xylophone
    • #7
    • 5th Feb 18, 3:27 PM
    • #7
    • 5th Feb 18, 3:27 PM
    Is this a gift being made to the children?

    £20, 000 in total between how many children?

    They have CTF accounts?

    It would be possible to pay the maximum into the CTF in the CTF year, transfer to JISA and pay in the full amount in the JISA tax year.

    This might solve your problem.

    http://www.thisismoney.co.uk/money/saving/article-2978112/Is-child-trust-fund-misery-end.html

    https://www.skintedmintedmum.co.uk/minted-blog/how-to-transfer-a-child-trust-fund-ctf-to-jisa-with-a-double-scoop-of-tax-allowance.html

    Before you do that, just check when you made the last contribution. With a Jisa, the annual allowance period runs between the regular tax year (6 April to 5 April the next year). But the CTF period starts on the child's birthday and ends the day before their next birthday. This difference means it's possible to double up your allowance.

    For example, let's assume little Oscar's birthday is Thursday this week, 30 March, and you've contributed this year's allowance already. We're leaving it a bit late but in theory you could, on Thursday, put in his 2017/2018 allowance of £4,080 and then trigger the transfer to a Jisa. Miraculously, the paperwork is done instantaneously and the Jisa is open several days before 5 April, letting you shove this year's Jisa allowance (also £4,080) into the pot as well. A double tax saving whammy! You might have to compromise on the ice-cream now but, at age 18, a fully-loaded Jisa is going to taste a lot sweeter than raspberry ripple.
    Last edited by xylophone; 05-02-2018 at 3:30 PM. Reason: MSE's idiotic apostrophe glitch
    • tazwhoever
    • By tazwhoever 5th Feb 18, 3:28 PM
    • 842 Posts
    • 201 Thanks
    tazwhoever
    • #8
    • 5th Feb 18, 3:28 PM
    • #8
    • 5th Feb 18, 3:28 PM
    Do you claim Income Related benefits? Is this money being given to you or to your children?
    Originally posted by poppy12345
    To the children, by cheque. But my partner or I need to be a trustee to the saving account. It's too much for child trust fund. So have to open another accounts.
    • tazwhoever
    • By tazwhoever 5th Feb 18, 3:31 PM
    • 842 Posts
    • 201 Thanks
    tazwhoever
    • #9
    • 5th Feb 18, 3:31 PM
    • #9
    • 5th Feb 18, 3:31 PM
    Is this a gift being made to the children?

    £20, 000 in total between how many children?

    They have CTF accounts?

    It would be possible to pay the maximum into the CTF in the CTF year, transfer to JISA and pay in the full amount in the JISA tax year.

    This might solve your problem.

    http://www.thisismoney.co.uk/money/saving/article-2978112/Is-child-trust-fund-misery-end.html



    https://www.skintedmintedmum.co.uk/minted-blog/how-to-transfer-a-child-trust-fund-ctf-to-jisa-with-a-double-scoop-of-tax-allowance.html

    Before you do that, just check when you made the last contribution. With a Jisa, the annual allowance period runs between the regular tax year (6 April to 5 April the next year). But the CTF period starts on the child's birthday and ends the day before their next birthday. This difference means it!!!8217;s possible to double up your allowance.

    For example, let!!!8217;s assume little Oscar's birthday is Thursday this week, 30 March, and you've contributed this year's allowance already. We're leaving it a bit late but in theory you could, on Thursday, put in his 2017/2018 allowance of £4,080 and then trigger the transfer to a Jisa. Miraculously, the paperwork is done instantaneously and the Jisa is open several days before 5 April, letting you shove this year's Jisa allowance (also £4,080) into the pot as well. A double tax saving whammy! You might have to compromise on the ice-cream now but, at age 18, a fully-loaded Jisa is going to taste a lot sweeter than raspberry ripple.
    Originally posted by xylophone
    They already have CTF accounts, but the money that they will get will be too much.

    They will receive cheques on their names and there are 2 children.
    • Comms69
    • By Comms69 5th Feb 18, 3:31 PM
    • 2,393 Posts
    • 2,262 Thanks
    Comms69
    WHO is giving them this money, perhaps that will help.
    • tazwhoever
    • By tazwhoever 5th Feb 18, 3:34 PM
    • 842 Posts
    • 201 Thanks
    tazwhoever
    I claim ESA (CB) and Housing Benefit.

    Comms69 - from a relative (#10)
    Last edited by tazwhoever; 05-02-2018 at 3:37 PM.
    • xylophone
    • By xylophone 5th Feb 18, 3:38 PM
    • 24,514 Posts
    • 14,362 Thanks
    xylophone
    If the above does not fully solve the problem, then you should obtain formal written evidence of the gift to the children and hold the money in an account in the sole name of each child until such time as room becomes available in the JISA.
    • xylophone
    • By xylophone 5th Feb 18, 3:51 PM
    • 24,514 Posts
    • 14,362 Thanks
    xylophone
    They already have CTF accounts, but the money that they will get will be too much.
    Is it £20,000 each or £20,000 to each child?


    You can use the CTF/JISA transfer method detailed in my post 7 above to get up to £8000 plus into each child's account.

    With regard to the balance, see post 12 above and be prepared to leave the money untouched and to provide evidence that the money has remained untouched.

    https://www.nationwide.co.uk/products/savings/smart-limited-access/features-and-benefits

    You might consider fixed rate savings for children.

    Cambridge Building Society (3 year bond)

    https://www.cambridgebs.co.uk/savings#

    http://www.kentreliance.co.uk/bonds/2-year-fixed-rate-bonds#tc
    • tazwhoever
    • By tazwhoever 5th Feb 18, 4:12 PM
    • 842 Posts
    • 201 Thanks
    tazwhoever
    xylophone - thanks

    It would be 20K to each child (2 children). It would paid by bankers cheque to each child. But as parents, one of us needs to be a trustee with the child name.

    Money is for their future use. My concern is, as I claim housing benefit, it may be affected. I would leave children's money untouched for their higher education, etc.
    • TELLIT01
    • By TELLIT01 5th Feb 18, 5:25 PM
    • 4,576 Posts
    • 4,840 Thanks
    TELLIT01
    I suggest you get formal financial advice because if you don't get it right the entire amount could be considered to be your money.
    • xylophone
    • By xylophone 5th Feb 18, 5:31 PM
    • 24,514 Posts
    • 14,362 Thanks
    xylophone
    You would open an account for each child to receive the cheques - don't forget to get written evidence from the donor that the money is an absolute gift to each child.

    https://uk.virginmoney.com/savings/find/virgin_young_saver_issue_5/overview/ might do.

    You could then make maximum contribution to CTF in CTF year, transfer to JISA and make the maximum contribution for the current tax year.

    Example https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

    By ISA transfer - you may transfer in junior ISA savings or Child Trust Fund savings held with another provider

    If this were achieved before the end of the current tax year, you would be able to make the maximum subscription for 2018/9 as well on or after 6 April.

    The balance could be held in the Virgin accounts pending JISA subscription 2019/20 and 20/21.

    However you should check that any of the suggestions above are suitable for your circumstances and in any event advise your benefit provider (s) of the gifts prior to receipt and be prepared to provide evidence that the accounts remain untouched except for transfer to JISA/other child. accounts which also remain untouched.
    Last edited by xylophone; 05-02-2018 at 5:33 PM. Reason: bold
    • tazwhoever
    • By tazwhoever 5th Feb 18, 7:21 PM
    • 842 Posts
    • 201 Thanks
    tazwhoever
    xylophone - thanks

    "The £20,000 to each child being gifted now by a kind relation should (carefully saved/invested), enable them to make a good start on the deposit for a house when the time comes."

    How can I be sure that investments/savings wouldn't affect mean tested benefit? As TELLIT01 states, there may be a possibility.
    • poppy12345
    • By poppy12345 5th Feb 18, 7:23 PM
    • 2,091 Posts
    • 1,980 Thanks
    poppy12345
    xylophone - thanks

    "The £20,000 to each child being gifted now by a kind relation should (carefully saved/invested), enable them to make a good start on the deposit for a house when the time comes."

    How can I be sure that investments/savings wouldn't affect mean tested benefit? As TELLIT01 states, there may be a possibility.
    Originally posted by tazwhoever
    I thought you said it was for your childrens future education?
    • Penitent
    • By Penitent 5th Feb 18, 7:54 PM
    • 2,050 Posts
    • 6,191 Thanks
    Penitent
    The only way to be sure would be to ask the DWP directly and get the answer in writing.

    Can the relative open accounts for the children with themselves as the Trustees, or does it have to be a parent?
    • tazwhoever
    • By tazwhoever 5th Feb 18, 8:11 PM
    • 842 Posts
    • 201 Thanks
    tazwhoever
    xylophone wrote in another thread - "The £20,000 to each child being gifted now by a kind relation should (carefully saved/invested), enable them to make a good start on the deposit for a house when the time comes."

    This is what I was replying to. Yes the money is for future education.

    Penitent - the relative is very old, it's a kind gift to my children. (#19).
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