Child Trust Fund - inheritance

SkintSazzie

Is it possible to have 2 child trust fund accounts up to the max amount allowance in both accounts or is the allowance a one off. My youngest son has been left some money by his Grandmother who has recently died, who had stated in her will that the money be kept in trust till he is 18. I believe the max in an account is approx £6000 before tax starts to be charged, so can there be 2 separate accounts - maybe at different banks?

chexum

A child can only have a single Child Trust Fund, and it can only be funded £1200 a year. You need the initial voucher to open the account, so I don't see how you could open more than one. Also, it would kinda defeat the purpose of the £1200 a year limitation...

As child trust fund vouchers won't be issued (next year?), it's likely the scheme will be revamped in the coming years, that is, generalised for children not qualified for the current variation, but a yearly limit will likely stay (though might increase, as the ISA limit does).

Some CTF managers, which are not necessarily banks, may allow additional payments, and they might hold those until they can be paid into the CTF itself, but this may not be as tax efficient, and may not be the "trust" you may be thinking it is, in the legal way.

http://www.childtrustfund.gov.uk/

Mikeyorks

SkintSazzie wrote: »

I believe the max in an account is approx £6000 before tax starts to be charged

Are you confusing that with the £100 interest from funds provided via the parent(s). As the £6k rings no bells.

As previous post ... you can only have a single CTF. But you can put the money in your name - on behalf of the child - in many different savings accounts. And that creates a simple Trust. Just ensure the account you choose allows you to keep it that way until age 18 - as some will insist on transfer to the child's name at 16.