Junior trust account

ButtonMoon81

Hi ! I am totally new to this and I've never posted on a forum before in my life so please excuse me if I do it completely wrong :mad:

I really need some help...my daughter is due to receive some inheritance (11k) from her late father through the court (we were never married) and as she is only 14 it will go into a trust account until she is 18. The money automatically goes into the court account which is only 0.5% per annum !!!:eek: I asked my solicitor if I could ask the court to consider another account if I could find one with a better interest rate, he said this should be fine if the account is secure until she is 18 (even I cannot be allowed access to it, I presume this is to protect the child's inheritance from awful parents!)

I have almost gone insane looking...I have found junior ISAs which looked good until I found out that the maximum you can put in per year is £3700 (I asked my solicitor if the court could transfer this amount each year until all her money was in the account but was told no, it all has to go into one account) Child trust funds don't seem to exist anymore and any other child savings account seems accessible in some way, some say is is locked until your child is 18 but you can 'close is early' and therefore the court would deem it as unsafe.

please help.... !!!!:o

BoyFromBrazil

Hi Buttonmoom

Hope you don't mind me sharing your thead but I'm in a similar boat; my ex has just given half of the house equity she aquired to both kids - £10k each to a (nearly) 18 year old and a 14 year old. I don't want the youngest to have access to hers til she is around 18, not sure there is much i can do for the older one as he's nearly 18 now.

But it is a minefield out there - so if anyone is looking to help buttonmoon, please help me too!

Thanks

xylophone

Buttonmoon

Would you want to consider a five year fixed rate with the Leeds perhaps? Not brilliant but better than 0.5% http://www.leedsbuildingsociety.co.uk/savings/rates-notice-bonds.html

You would hold it in bare trust for your child - assuming she is not a taxpayer you can complete R85 on her behalf - after the age of 16 the R85 must be rescinded but you would request repayment of any tax overpaid on R40.

At age 18 she assumes control and can complete R85 for herself if appropriate.

xylophone

Boy from Brazil - if the money actually belonged to your wife and she has given it to the children then she needs to have regard to the "£100 rule" on interest arising outside tax privileged accounts like the JISA.

See explanation here http://uk.virginmoney.com/virgin/savings/learn/childrens-accounts/