Nowhere to put child's money!

icclebug

Hi everyone,

I posted about this a few weeks ago and still need some advice please.

My daughter has been left £5k by a relative with the stipulation that it must go into an account that she cannot access until she is 18. She does have a Child Trust Fund account, but she would only be able to put in approx £3600 then would have to wait until her birthday in January next year to put the other £1400 in.

Does anyone have any ideas of other options?

Also, an even bigger problem, we have another baby due in June that has also been left £5k. This baby will not have a Child Trust Fund account and the only option I can find is the Junior ISA bit again with a limit of £3600 per tax year.

Any ideas would be really appreciated, surely this is common that kids get money left in a will, what do people normally do?

Thank you,

Richard

innovate

I know parents of young children are busy (aren't we all), but have you searched/browsed the forum and the main MSE site for kids/children's accounts/savings?

Suppose you haven't because you would have come across Virgin and Lloyds and Halifax kids savings accounts.

somethingcorporate

Linky.....

icclebug

Thanks for the replies.

I have searched tirelessly on the internet for accounts, although all the banks do the kids saving accounts, none of them allow you to restrict access until the age of 18.

denise38

Surely if you haven't used this years allowance of £3600 you can put that in then after April whack the remainder in. I am in that quandry as well and have decided just to put £3600 in then the remainder after 6th April .My quandry was a bond that had matured so my BS will keep the remainder in a 90 day smart saver at 2.1 % then take it out in the next tax year and put in junior ISA . I am unlikely to want to put £3600 in for next year unless they get left more money .

icclebug

Hi Denise38,

Thank you for replying. Unfortunately she cannot have a Junior ISA as she has the CTF already, I always thought it ran from tax year to tax year but i called them today and the year runs from birthday to birthday - typically her birthday was 3 weeks ago

Salz

I have a Lloyds TSB Young Saver Account for my 2 children. They cant access that until they are 16, but I think at that point there are other options open to you as per the 3rd account feature http://www.lloydstsb.co.uk/savings/young_savers_account.asp

icclebug

Thank you Salz,

Unfortunately the stipulation of the will is very clear, has to be an account that is untouchable until 18 - causing me nightmares this

jaybeetoo

You can set up a bare trust http://www.hmrc.gov.uk/trusts/types/bare.htm

Many financial investment companies offer them free of charge e.g. F&C but watch out for their new fees!

icclebug

Thank you, will certainly take a look

jaybeetoo

Hargreaves Lansdown have a guide about investing for children which includes bare trusts

https://www.hl.co.uk/free-guides/investing-for-children2