Children have inherited money...what do i do with it?

nicolaspets

Hello
3 yr old...5000
9 yr old 5000
14 yr old 1250
16 yr old 1250.
Solicitor has released the money to us.....for us to put somewhere until they are 18...can anybody please tell me where to put it?
At the moment sitting in cupboard earning nothing at all.
Many Thanks !!

debulition

I've no idea what you should do with the money (other than not leave it in a cupboard!), but I am wondering what the poor elder two kids did to deserve less of an inheritance than the younger two.

nicolaspets

The older 2 have a different father....so are not actually related to the deceased....nice of her to leave them anything i thought.....that has nothing to do with the question i was asking though!

opinions4u

Do you want access? Tie it up until they're 18 or 21? Treat now, save the rest for education?

3 year old may be able to invest some in child trust fund. Maybe look at an Investment Trust like Alliance Trust or similar (low charge bare trust).

Middle two could look at Halifax 10% Regular Saver for some of it, linked to a 5.55% instant access Save4It kids account thing. Put the rest in high interest fixed rate account for them aiming to get 6.5%-7.0%.

Older one probably look at a mix of the second idea above or decent cash iISA.

clairbear_3

Hiya,

If you do open a childrens reg saver with HALIFAX bizzarely you must tell them to pay gross or they will tax it @ 20% even thou it is for a child!
Ive just managed to get them to pay back the 'tax' on my daughters account

debbie42

That's the same for most children's accounts, not just the Halifax. The bank can't know what your financial arrangements are without you telling them.

tigtag02

debbie42 wrote: »

That's the same for most children's accounts, not just the Halifax. The bank can't know what your financial arrangements are without you telling them.

I think the clue is in the name of the accout:

clairbear wrote: »

Hiya,

If you do open a childrens reg saver with HALIFAX bizzarely you must tell them to pay gross or they will tax it @ 20% even thou it is for a child!
Ive just managed to get them to pay back the 'tax' on my daughters account

LucyTheDwarf

Yet it's a fallacy that children don't pay tax. They have the same allowance as the rest of us. It's just unusual that a child meets the £6035 income level to start paying tax.

Lokolo

LucyTheDwarf wrote: »

Yet it's a fallacy that children don't pay tax. They have the same allowance as the rest of us. It's just unusual that a child meets the £6035 income level to start paying tax.

Unusual? Its near to the impossible - who would pay children more than minimum wage? I know I wouldn't pay a 12 year old more than £2 an hour to clean my car damnit!!

tigtag02

LucyTheDwarf wrote: »

Yet it's a fallacy that children don't pay tax. They have the same allowance as the rest of us. It's just unusual that a child meets the £6035 income level to start paying tax.

To be pedantic thats not the tax free allowance until next month

Lokolo

tigtag02 wrote: »

To be pedantic thats not the tax free allowance until next month

Haha yeh! Everyone on these boards are saying blah its £6035, when in fact, its £6035 from September my stupid payslip still only says the old one