inheritence

mklowden

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.

System

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

macman

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

atush

When do you see the money being used? I would consider putting some of it into investments for her. Such as investment trusts.

xylophone

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

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

!!!!!! 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

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

can you have trust as well as isa?

xylophone

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

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 .