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inheritence

hi martin my step daughter who is 13yrs old has recieved inheritence money now we have open the best interest isa how ever as the amount is less then £20,000 we cant put the lump sum in the isa so just wandering where is the best place she can put this then transfer so much to her isa.
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Comments

  • System
    System Posts: 178,361 Community Admin
    10,000 Posts Photogenic Name Dropper
    If this is inheritance as a result of a bequest in a will then as she is under 18 it must be placed in a trust fund. I'm surprised the executors weren't aware of this
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    What ISA have you opened for her? You can only put £4,080 into a Junior ISA in the current tax year-she cannot open an 'adult' Cash ISA at 13. More info here:
    http://www.moneysavingexpert.com/savings/junior-isa
    No free lunch, and no free laptop ;)
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    When do you see the money being used? I would consider putting some of it into investments for her. Such as investment trusts.
  • xylophone
    xylophone Posts: 45,667 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The executors can agree that a parent can hold it in trust for her- the Nationwide Smart Limited Access might do the trick- the JISA can then be filled over the next few years from this money.

    http://www.nationwide.co.uk/products/savings/smart-limited-access/features-and-benefits
  • xylophone
    xylophone Posts: 45,667 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Another thought, if the parent has an ISA of her own with the Halifax, the 4% JISA would be available to the child.

    http://www.halifax.co.uk/isas/cash-isas/
    I would consider putting some of it into investments for her. Such as investment trusts.

    This is likely to be a bare trust where the executors do not have powers of investment - besides that, the child has the right to access and control at 18 and five years is a shortish time span for stock market based schemes?
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    !!!!!! wrote: »
    I'm surprised the executors weren't aware of this

    Many executors are just family members with little knowledge, despite the legal burden placed upon them.
  • mklowden
    mklowden Posts: 20 Forumite
    my partner was the executer along with her brother however they have takien the loss quite bad.but i have been trying to sort out the best place for my step daughters money i have opened a isa with nationwide smart junior which has £5 in so with the investments what type of investments are you talking about?im not that knowledgeble with all this either.
  • mklowden
    mklowden Posts: 20 Forumite
    can you have trust as well as isa?
  • xylophone
    xylophone Posts: 45,667 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you have chosen the Nationwide Junior ISA, you can put the maximum into it for this tax year - you could then in addition open a Smart Limited Access in trust for the child and move the money into the JISA over the next two/three tax years.

    If the child is not a tax payer you should complete an R85 on the Smart account.

    Perhaps you could make an appointment at the Nationwide branch to discuss the matter?
  • mklowden
    mklowden Posts: 20 Forumite
    I was told i can not put the full amount in the isa £4000+ is the limit in a tax year.
    R85?
    Dont know what that is anyways thanks all for your inbut .
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