kids inherritance

memberme

Hi,
my kids are about to inherrit several thousand pounds which I know is safe from the IVA hands. My query is:-
I have coop accounts and savings accounts but they are refusing to open accounts for the kids because of my credit checks which seems bizarre are I am requesting 2 future funds accounts that have no credit fascility and would recieve a large dollop of funds. I would like an easy access account so I can mange the funds as trustee and move it around. As it's source is detailed both in the will and ny the probabte holder, will it be safe in my own deposit account? I have asked around other options but all banks I have approached (that i trust and don't owe money to) have refused for the credit check reasons. I don't just want to pay it into a single one off long term account as these are not offering much now.

please advise especially regarding placing it in my deposit account. The iva folk don't ask to see that account details.

GlamGirlie

Hi. To be absolutely safe you should not use your own accounts - at any financial institution.

The money belongs to the children and so should go into accounts with their names on.

If it is to be held in Trust for them to reach a certain age then a Trust account would be needed, and the Trustees would control it.

Any bank is within it's rights to refuse you as a client - but if the accounts are in the children's names then your credit history is irrelavant.

You do not state their ages nor when they would be receiving the funds, but an easy access is not the best way to grow their inheritance, in fact, by doing that you would simply erode it by way of inflation.

Have you considered the Junior ISAs that have recently been launched? Or childrens savings bonds from the Post Office?

memberme

Hi,
thanks. I have considered a trust account but most banks don't do them and they return poor forcasts currently. I am the trustee and the Will unusually states I may invest in property or otherwise to attain the best return and have fullcontrol over funds. Or I can withdraw for the kids benefit as required etc etc. Many trust acounts continue from the daft creation the governments forced with the voucher scheme whereby no-one can access the funds for the duration until 18 years of age. My kids are 6 and 3 and I would rather invest carefully and move it around so an acount that permits that is best. especially one that allows me to chose the type of shares and risk involved. I agrree the kids isa's are quite good but only a limited amount can be added each year. I certainly believe placing in any trust account with government monitered safe investment is not going to gain much at all in most banks in the same way that endowments rarley return anything worth having even after 25 years.

memberme

one final point is that the coop like many banks do do credit agency checks on accounts that are to be managed by an adult. This is not unusual