Child savings help please.

whitequeen

My ex-husband died last year and left a 'work place' pension lump sum to both of our children. The girls are 12 & 15. They are about to recieve £60,000 each and myself and my sister are Trustees of this money.
Does anyone have advice as to where to put the money? There are stipulations within the Trust Fund that say we can use money before the girls are 18 for any education costs (transport, technology etc) so we would need to be able to withdraw some funds but I'm at a loss as to what to do with such large sums of money.
Any help would be gratefully received.

xylophone

You could consider taking professional advice.
http://www.unbiased.co.uk/find-an-adviser?gclid=CKrSpLDSzLYCFZMQtAodlFsAPQ

I am assuming that this trust is either a bare trust or a trust for a bereaved minor?

Do the trustees (subject to the trust stipulations) have absolute discretion as to how to invest/deposit the money until each child becomes 18?

Interest rates are very poor at the moment but the trustees will require to hold some cash on instant access - you should be able to hold any account where the provider allows trustee holding.

As it appears that the money belongs absolutely to each child you would be able to complete R85 for such accounts assuming the child is a non taxpayer up to the age of 16 - after that the R85 must be rescinded and any overpaid tax reclaimed by the trustees on R40.

You might also want to consider some sort of stock market based investment held in trust for each child for part of the money with an eye to the future beyond the age of 18.