Top Child Trust Funds Article Discussion Area

Colin_Wright

One simple reason to withdraw from Foresters Life is how difficult it is to reduce payments & contact them. You can increase contributions in seconds online, but not reduce. They are deliberately making it hard for customers.

Their performance this year has been shocking, even taking into account current market difficulties. They were being difficult so I have now switched. No idea why anyone would stay with them.

Roders1516

Hiya,

I wondered if someone could help, my daughter is 8 and has inherited a sum of money from her dad who has recently passed away. I have been told that the money can only be transferred into a CTF (something she doesn't have).
This means I would need to apply for a new CTF and I honestly dont know where to start.
Any advise would be massive help.

Thank you x

eskbanker

Roders1516 wrote: »

Hiya,

I wondered if someone could help, my daughter is 8 and has inherited a sum of money from her dad who has recently passed away. I have been told that the money can only be transferred into a CTF (something she doesn't have).
This means I would need to apply for a new CTF and I honestly dont know where to start.
Any advise would be massive help.

Thank you x

Perhaps some confusion - CTFs as such were only available between 2002 and 2011 as a government-assisted savings vehicle, and this is what this thread is about.

However, trust funds have existed before and after this as a more generic facility, and so this is more like what's needed here to hold inheritance money for a minor, either as a bare trust or a discretionary trust. It'll be worth checking the provisions of the will to understand any specific directions there, and then read up on these terms to familiarise yourself with what they mean, at sites such as:

https://www.gov.uk/trusts-taxes/types-of-trust
http://www.estatesortrusts.co.uk/what-is-a-bare-trust.html
https://www.moneyobserver.com/our-analysis/discretionary-trusts-and-bare-trusts-beginners-guide

xylophone

I suspect that you have been told that the money must be held in Trust for your daughter until she turns 18 - this may be a bare trust arrangement if she is "indefeasibly entitled" or possibly a "bereaved minor trust" if there are conditions to be fulfilled.

http://www.prescient-financial.com/docs/Bare%20trust%20returns.pdf

https://www.bequeathed.org/wills/will-trust/bereaved-minors-trust

If you are unsure, your solicitor should advise.

karensdallys

I was given money by the government to put into a child trust fund in 2003. My son turned 16 at the beginning of December. Unfortunately he was out by 6 days to be able to open a help to buy ISA. Is it worth moving the money into an ISA or leave in the Nat west child trust fund until he is 18??

Reaper

That depends on what the Nat West CTF is like compared to what else is available. If there is nowhere you prefer it to be then at 18 the CTF will turn into an ISA anyway.

Im_A_Mouse_In_Need

I have a CTF in my son's name. It's a stakeholder shares account, current value £400
I want to open a JISA with Vanguard. This is not allowed this while there is a CTF in his name.
I can convert the CTF to a JISA with BMO and transfer the new JISA to Vanguard. This will incur a dealing fee to buy a new holding within the BMO JISA (they offer 10 funds, and the single holding in the CTF is not one of them) then a dealing fee to sell that investment and then an exit fee of £50+VAT. Total fees of £84 after VAT I think. Plus a £25 annual account fee on top, but that is applied pro rata so not as bad.
Is there a better way to do this? Vanguard do not accept CTF transfer in.
Any other provider I can use to get the CTF away from BMO, and then convert it to JISA which I can transfer out to Vanguard?
Feels a bit wrong paying this much to move this investment out, but I am stuck if I don't as the rules do not allow me to open any JISA for my son otherwise.

xylophone

https://www.hl.co.uk/investment-services/junior-isa/transfer-an-existing-junior-isa
Or transfer to a   Cash JISA  first?
https://www.coventrybuildingsociety.co.uk/content/cbs/consumer/en/help/savings/isas/junior-isa.html

Im_A_Mouse_In_Need

That may well be a winner, as I am allowed a cash JISA as well as a stocks and shares JISA - I just have to get rid of the CTF, will call Coventry BS to check
Thanks 

Ianstone1

Daughter is 18 tomorrow and is asking what to do with the CTF. I have no clue. Should I suggest tying it up in an account (she’s not the most sensible with money), or not?  Don’t want to give duff advice, but also worry she’ll splurge it on nothing.