Best place for childrens inheritance.

lucielle

Hi, I don't venture far from DFW so please be gentle with me. My children are shortly going to inherit in the region of 10k each. This has to be invested until they are 18 (longer if I get my way). Their ages are 13,11,10 and 8. If anybody has any suggestions (especially in the current climate) where the best place to put it, please let me know.
L

6022tivo

lucielle wrote: »

Hi, I don't venture far from DFW so please be gentle with me. My children are shortly going to inherit in the region of 10k each. This has to be invested until they are 18 (longer if I get my way). Their ages are 13,11,10 and 8. If anybody has any suggestions (especially in the current climate) where the best place to put it, please let me know.
L

Wait around 12 months, and buy them a house each.. You should be able to pick up a nice 70's semi for 10k in a year or two.

lucielle

I like the bricks and mortar idea, not too sure they will come that cheap.
L

Primrose

Probably not the most exciting option but the Post Office offer a trust fund facility for children which has the option of holding the money in trust until they are 21. You will have to provide identification details for each child (the application form will provide details but think a minimum requirement is a copy of their birth certificate). Probably advisable to have two trustees in case something happens to a single trustee and it becomes difficult to access the money when it's due. Not sure what the current interest rate is but I'm sure the Post Office can advise, and at least it will be safe there.

BruceyBonus

Primrose wrote: »

Probably not the most exciting option but the Post Office offer a trust fund facility for children which has the option of holding the money in trust until they are 21. You will have to provide identification details for each child (the application form will provide details but think a minimum requirement is a copy of their birth certificate). Probably advisable to have two trustees in case something happens to a single trustee and it becomes difficult to access the money when it's due. Not sure what the current interest rate is but I'm sure the Post Office can advise, and at least it will be safe there.

Have you got a link to this? I can only find the CTF on their website.

Edit: Just found it. It is actually NS&I - not the Post Office - who offer this. Note that you can only add £3000 to each "issue" of the bond. Also, the children can access the money once they are 16. However they are tax free. Current rate is 2.85%. The rate and money is locked in for 5 years.

lucielle

Thanks for the ideas, I think the children already have some bonds that they got when they were born. I'll look into that further.
L

dunstonh

Who are the trustees and what are the instructions for the money? Does it have to be held under trust for the children?

lucielle

My sister-in-law and a friend of mother-in-law (who died) As far as I'm aware the children can have the money when they are 18. I would prefer to have it tied up longer but not sure if this would be possible.
L

Primrose

lucielle - just don't tell the children about the money. You'll probably find that when the time comes there is a way of putting it somewhere else for them until they're old enough to spend it sensibly.

lucielle

Not going to tell them subscribing to the mushroom theory....keep them in the dark.
L

jennifernil

Very wise!