Inheritance Investment

loonytunes123

Hi,
Can you advise on best way to invest £10k x 2, for two teenagers currently aged 14 and 15, maturing at 18 for both?

xylophone

Do they have a JISA? Best cash rate at the moment is 4% from Halifax if registered contact holds an ISA with them.
https://www.gov.uk/junior-individual-savings-accounts/overview

The money has not come from money inherited by the parents? If it has, be aware of the £100 rule.( Doesn't apply to JISA) See http://uk.virginmoney.com/virgin/savings/learn/childrens-accounts/ under tax

http://www.nationwide.co.uk/products/savings/smart-limited-access/features-and-benefits might be worth a look for the balance, moving into JISA once a year.

You would hold the above in bare trust but be aware that once the child turns 16, any R85 must be rescinded and any tax overpaid reclaimed from HMRC on R80.

getmore4less

Are you the executor or did you get the money from the executor?


What are the terms of the trust?

loonytunes123

I'm executor (and grandfather) but the money is from my brother's estate

loonytunes123

it's to be my sole decision as to how it's invested

xylophone

invested

If they are to receive the money in less than five years then "investment" stocks and shares would seem a bit chancy.

See my post above which might help.

If you do not wish to use the JISA, the Nationwide suggestion might be of use?

It would make life easier if one of the parents could be joint Trustee because a parent should sign any R85 and should make any tax reclaim after the child turns 16 - this money should also go into a trust account.