Savings for a 15 year old

barnez

Hello, I'm after some advice please. My 15 year old Son has inherited £40,000. The terms of the will state that it has to be held for him until he is 22. His Grandmother hoped that he would do something sensible with it, ie use it to get on the property ladder when the time comes. Could anyone please suggest the best place to safely invest it. Thank you for your help.

xylophone

You need first to establish whether this is a "bare trust" or a "discretionary trust".

http://www.pruadviser.co.uk/content/knowledge/oracle_archive/oracle-quarterly/summer-2014/at-first-sight/

Bare or absolute trust
This is a trust where each beneficiary has an immediate and absolute title to both capital and income. HMRC advise that "it is up to the trustees to establish whether a trust is bare. If the trustees have access to legal advice they should ask their legal adviser whether the trust funds have 'indefeasibly vested' in the beneficiaries. If they have then the trust will be a 'bare trust'.

http://www.prescient-financial.com/docs/Bare%20trust%20returns.pdf