Children savings that can't be accessed automatically at 18

Reaper

I found a link:
https://forums.moneysavingexpert.com/discussion/5012333

My memory wasn't quite right (it was 3 years ago). The question was whether it was possible for the adult child to get the money without a court order and the answer appears to be no. It is not enough for the child to tell the company he is entitled to it.

I believe the only options are to try to remove the trustee or "break the trust", both of which involve the courts (unless the terms of the trust allow an easier means to replace trustees) and therefore a practical barrier. If an 18 year old is motivated and competent enough to see the process through then I hope they are responsible enough to use the money wisely too!

xylophone

The child would have to be informed of the existence of the trust once he became responsible for his own tax affairs.

http://www.lawdonut.co.uk/personal/inheritance-tax-and-family-trusts/trusts-for-children-and-other-family-members-faqs

https://uk.practicallaw.thomsonreuters.com/0-107-6471?__lrTS=20170411025445184&transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1

xylophone

From the perspective of the investment company, bare trust accounts are often just an ordinary unwrapped account with a designation attached - usually a series of letters which the trustee knows is the child's initials but from the perspective of investment company is just an abstract set of letters.

This needs care - there is a difference between an account which is merely "designated" ("revocable basis") and one which is held in bare trust ('irrevocable basis").

https://www.trustnet.com/Education/SaveChild.aspx?ms=5

AnotherJoe

The last dozen or posts confirm my thought that it's far easier to save in your own name earmarked for the child, and hand over when you think appropriate.