Financial gift to 16 yr old

EllieMo

My mother recently died and left her small estate to me. I would like to give some money to my 2 nieces, 18 and 16, but I would like to invest money for the 16 year old and not allow access to it until she is 18. I have investigated Junior ISAs which fit the bill but they have to be opened by a parent (their parents are separated and for a variety of reasons I don't want to involve them at all).
Any ideas?

pigpen

I'd not give to one and save for the other.. I'd put it in an ISA in your own name and give when they are 18 and 20 ..


unless you take the 16 y/o and open an account with her it might be worth speaking to the bank and seeing if its possible to save it until she is 18. At 16 she doesnt need a parent to open a account and can link an ISA to a current account if she already has one.. Mine have them like this.

Bobcrowther

16 years old - old enough to have kids, leave school, get married and work full time.

Just saying.

Primrose

I wouldn,t trust most 16 year olds with the money. Could you open a joint savings account with her and make any withdrawals conditional on both signatures?
Two snags to this. You may both have to produce money laundering iD and at 16 she may have little documentation, and if you are over the £1000 p..a. free interest allowance you will have to declare your share of tax received.

Jagraf

Bobcrowther wrote: »

16 years old - old enough to have kids, leave school, get married and work full time.

Just saying.

Only loosely though. You have to stay in education til you are 17, which will mean you won't earn a permanent full time salary at 16. Also in England you have to have parental consent to marry at 16. If you have a child at 16 it's probably unlikely you would do this without support from older adults / the government.

Op the girls are different ages - give to the 18 year old and invest for the 16 year old. Parents do that so why not lovely aunties x

suejb2

Put the same amount you are giving the 18 year old into a new account opened in your name . Explain to 16 year she too will be getting some money but when she reaches the age her sister is now therefore 18. Upon that day you close the account keeping any interest giving niece now aged 18 the money.

OR

To give the girls money at the same time make them both wait two years.

OR

Give half the intended amount now to spend and then the rest when younger is an 'adult'.

Marvel1

Bobcrowther wrote: »

16 years old - old enough to have kids, leave school, get married and work full time.

Just saying.

If not sensible squander it away.

No wonder many parents buy cars, gift deposits for houses for their kids.

OP: Not your saying your niece is above.

onlyroz

Could you perhaps buy them something instead? E.g. if the 18-year-old is at uni offer to pay a term's rent or something? Or pay for driving lessons?

peachyprice

We used this account for children's inheritance that couldn't be touched until they were 18

https://www.harpendenbs.co.uk/savings/personal-accounts/18-club

Armchair23

Because you are very generously gifting money to your nieces (not because it was part of a will) you can do whatever you choose whenever you like.

So if you don't want a 16 year old to have access to the money don't give it to her until she's older!

You could decide to give them a sum when they are 21 or you could wait and see when there is a specific time that it would really help. With tuition fees, driving lessons etc.,

I think it's a lovely thing to do and good that you don't want to treat the nieces differently. But I don't think you need to overthink this unless it's a really large amount of money then IHT could play a part.

jackyann

There are advantages & disadvantages to any of the above, and some depends on life circumstances. However, if you decide to keep the money with a view to gifting it to your nieces, then do change your will.

This especially applies if you are going to link the gift to age. I would put it in a specific account and write a codicil - cheaper and easily removed when both have turned the allotted age. Something like this:
The money in Toytown bank account no. 123 to my niece Grizelda; the money in account number 987 to my niece Matilda.
Then simply remove the codicil.