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Inheritance - Under 18 Beneficaries (Trust)

rhys1984
rhys1984 Posts: 8 Forumite
in Deaths, funerals & probate
Hi everyone,


One more question for this brilliant forum:
We have £500 to give to five children under the age of 18 from an estate.


Am I correct in thinking that we must open a trust account with the bank to hold the money? Could we instead pay into a Junior ISA or Child Trust Fund?


Thanks,


Rhys

Comments

  • G6JNS
    G6JNS Posts: 563 Forumite
    rhys1984 wrote: »
    Hi everyone,


    One more question for this brilliant forum:
    We have £500 to give to five children under the age of 18 from an estate.


    Am I correct in thinking that we must open a trust account with the bank to hold the money? Could we instead pay into a Junior ISA or Child Trust Fund?


    Thanks,


    Rhys
    It has to be held trust until they are 18. AFAIK CTF and Junior ISa are not acceptable.
  • Keep_pedalling
    Keep_pedalling Posts: 22,336 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    G6JNS wrote: »
    It has to be held trust until they are 18. AFAIK CTF and Junior ISa are not acceptable.

    Do you have any evidence for that? I can't find a single source saying you can't, but on the other hand I can't find anything saying you can either.
  • FreeBear
    FreeBear Posts: 18,306 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    A child can have either a Child Trust Fund or an Junior ISA but not both. With either type of account, the child can not withdraw the money until they reach the age of 18.

    Not sure if you could pay an inheritance in to a CTF/JISA - The probate help line and/or HMRC should be able to advise.
    Any language construct that forces such insanity in this case should be abandoned without regrets. –
    Erik Aronesty, 2014

    Treasure the moments that you have. Savour them for as long as you can for they will never come back again.
  • G6JNS
    G6JNS Posts: 563 Forumite
    Keep_pedalling wrote: »
    Do you have any evidence for that? I can't find a single source saying you can't, but on the other hand I can't find anything saying you can either.
    Likewise but it really comes down to whether it is safe investment hat earns reasonable interest. For the sums involved my choice would be a CTF or Junior ISA event though they can't be written in trust in the conventional manner. When opening the account don't mention the source.
  • Keep_pedalling
    Keep_pedalling Posts: 22,336 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    G6JNS wrote: »
    Likewise but it really comes down to whether it is safe investment hat earns reasonable interest. For the sums involved my choice would be a CTF or Junior ISA event though they can't be written in trust in the conventional manner. When opening the account don't mention the source.

    I'm really surprised that there is so little info on this subject, and where such small sums are involved professional advice is not really on. I have also read that small gifts can be given to 16 and 17 year olds, but I've not seen anything official on that either.
  • rhys1984
    rhys1984 Posts: 8 Forumite
    Thanks for the responses so far. I'm still trying to search the Internet as well to see if the Junior ISA workaround is possible - but I completely agree - there is no official information at all on this issue
This discussion has been closed.
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