Money left in will for daughter to invest - where?

dunstonh

open a sipp for her and invest all the money in oil shares ie bp.

That cannot be done as it would break the rules of the trust unless the Will stated that the money was to be used for pensions.

RobertoMoir

Timmytimster wrote: »

I've just read through this thread as I have a similar situation. I'm the executor of my Aunt's will and all her nephews were left £1000. There are four of them and three are young enough to have a CTF however, my problem is with the oldest as he is 10 and too old for a CTF.

I really want to put the money where he can't access it until he's 18 but don't even know what options I have let alone the best one.

MrPoshman... you suggested investing but could this fit in with my plan? Ideally, I'd like to make the investment his (in his name) just not allow access to it so he can follow it and watch it grow (hopefully!) and learn about investing. Can you give me any more info, or help?

Thanks!

TT

Definitely look at the national savings products. I've was named trustee of some funds for my nephew and niece in my mother's will and thats what I ended up doing with them, with a good risk profile and a range of products that support opening an account as a trust and controlling who has access based on age, etc.

withnell

Why not get a FTSE 100 fund - you're investing for 12 years, and the value of the index is quite low at the moment, which could give a very nice potential return - as well as capital appreciation you get dividends too.

mrposhman

Timmytimster wrote: »

I've just read through this thread as I have a similar situation. I'm the executor of my Aunt's will and all her nephews were left £1000. There are four of them and three are young enough to have a CTF however, my problem is with the oldest as he is 10 and too old for a CTF.

I really want to put the money where he can't access it until he's 18 but don't even know what options I have let alone the best one.

MrPoshman... you suggested investing but could this fit in with my plan? Ideally, I'd like to make the investment his (in his name) just not allow access to it so he can follow it and watch it grow (hopefully!) and learn about investing. Can you give me any more info, or help?

Thanks!

TT

It all depends on your attitude to risk really. If you want to be a bit riskier with the money (but potentially earning more money) then go for "safer" shares like someone else stated BP / Shell etc (reinvest the dividends for faster capital growth) or a tracker. The tracker will track the ftse so if you expect it to increase in value then this should help your fund. Just to be clear though, I don't think these could be in their name though as I think you have to be 16 to own shares so you may get taxed on the dividend income.

Alternatively if you don't want to go for shares / investment funds then go for the highest yielding saving account that you can find, possibly with NSI. The reason I responded like I did above was that I don't like tying my money up for too long, a 5 year bond is far too long in my view especially when you can be earning that through dividends on shares when you can get out whenever you want. However, my view to risk is probably above average.

As no-one knows what will happen to interest rates I would definately steer away from locking your money up for a significant period of time. Is there a good 1 year bond for kids that you can put it in? (i don't know by the way, someone else will though).

dancingfairy

Martin has an article on childrens savings here:
http://www.moneysavingexpert.com/savings/child-savings-tax-free

Also on child trust funds:
http://www.moneysavingexpert.com/savings/child-trust-fund-vouchers
df

Jake'sGran

On the assumption that the revered Anthony Bolton will retire but willl have taught another fund manager what the secret was I'd said put it into the Fidelity Special Situations Fund. Spec.Sits are said to be more risky but my original contribution in 70s-80s of £3600 became approx £50,000 before the credit crunch. Have a look at the history. The stock market will rise again. Equities have been shown to beat cash historically.