Need to lock away £19k for 5 years - Child Bond??

skylight

Step-Daughter has finally recieved her compensation and we want to lock away £19k of it for her. She is currently 15 and does not know she has this money.

Ideally, we want to lock it away in her name but not neccessarilly tell her ....

I was thinking of Child Bonds for 5 years and looked at insurancesupermarket place but all of the decent ones are branch only - which is useless to me in Slough.

We do not want to tell her in case her mother ever found out about it - there is a potential of putting her under too much pressure if the scum b**ch (mother) ever left prision alive. We also dont want SD to know about it now because she isn't mature enough (IMO!) to even start to contemplate that amount of money.

It also cannot be in our name. We are in debt (waaaaay in debt) and we very nearly hit bankruptcy earlier this year (staved when Hubby got a new job!!) It would be a disaster if it were in our name and we were forced down this route anyway.

We cannot put it into a family members name. Basically, although his parents love her to bits, I/We cannot guarantee the amount handed over would be the same amount we get back.............
We could hand it to the one person we trust, My Dad - but hubby has his reservations about this too - as in, its my Dad and he doesn't want any problems if we were to split up (which is unlikely, but I see his point - you can never say never!)

So. What do we do? Any suggestions would be great - would a childs bond be in her name but have Dads name as a second (type thing) perhaps?????

dunstonh

Put it in trust and that way the trustees (which could be you) can look after the money but it isnt yours or classed as yours. Some investments have trusts pre-written which could be used or you could ask a solicitor to write a personal trust up for these circumstances.

skylight

Thanks!

Okay - how does a trust work and how do I set one up? See a specialist solicitor? Do you still earn interest? Can you set up a trust so i is still applicable into adulthood for her?

Can you tell I am in the dark about these???!!!!!

AlexIFA_2

Hi Charlotte

Any competent solicitor will know how to set up this trust. The cash can still be invested within the trust so will still earn interest.