Investing childrens inheritance and protecting it after they are 18

Tdub_2

My children have just been left a reasonably large sum by their uncle in the form of a discretionary pension payout.

I want to invest it now, they are 4 and 2, but would like to avoid them blowing it all on a splurge when they reach 18. Hopefully they will grow up wise and sensible, but you never know, and I would like to think that the money will help to provide a good future for them. Any suggestions on the best way to do this?

dunstonh

There are trusts you can put in place with certain investments which allow you to specify when it becomes available.

Tdub_2

Thank you very much, any idea where I should start looking?

homersimpson_3

agreed with trusts you set terms - e.g. not until 25. however make sure terms of trust are very specific and no room for misinterpretation. trusts are legal and can be challenged in courts. suggest you speak to solicitor to draw up documents.

dunstonh

Trusts on investments are usually set up by IFAs who deal in that area (all IFAs can but its best to get one that specialises in that area) or in conjunction with a solicitor.

Unless you want a specific, more complicated trust, the investment company may have a pre-written trust which suits your requirements.

Not all investments can be written into trust so you would need to discuss that as well.