Investing 100k for children

bigadaj

DiggerUK wrote: »

Please, only if I can have this as the resident gold expert �� emblem, and be invited on to Celebrity Come Dancing, to dance the light fantastic to my signature anthem.
https://m.youtube.com/watch?v=2zQr8Rwp1tk

I know, I know.....I'm way too modest about my talents..._

With Ronaldo style golden boots, or ballet shoes...

dunstonh

bostonerimus wrote: »

I'd open regular investing accounts and Junior ISAs for each child and put everything into a low cost global equity tracker like Fidelity Index World or Vanguard FTSE Global All Cap Index. Then transfer as much as you can from the regular account to the Junior ISA each year.

If the OP followed that recommendation they would be in breach of trustee duties.

DiggerUK

dunstonh wrote: »

If the OP followed that recommendation they would be in breach of trustee duties.

You'll need to justify what you are claiming.
It seems that the children have inherited without a will being present, and Piggy-bank has trustee status......Piggy-bank will hopefully give more details....Your comment seems a little inflated..._
https://www.gov.uk/trusts-taxes

bostonerimus

A junior SIPP might also be good for a portion of the money as long as you are ok with locking the money away for your child's retirement.

dunstonh

You'll need to justify what you are claiming.

Junior ISAs cannot be held in trust. So, the trustees would be breaching the trust rules by using them.

A junior SIPP

There is no such thing as a junior SIPP. However, if there was, it too would be breaching the trust rules.

Both ISA and pension take money out of the trust

DiggerUK

dunstonh wrote: »

Junior ISAs cannot be held in trust. So, the trustees would be breaching the trust rules by using them.
There is no such thing as a junior SIPP. However, if there was, it too would be breaching the trust rules.
Both ISA and pension take money out of the trust

Weasel words. Junior SIPP's do exist. http://www.hl.co.uk/pensions/vantage-junior-sipp
So do Junior ISA's http://www.moneysavingexpert.com/savings/junior-isa

bostonerimus, never mentioned formal trusts, neither has Piggy-bank. Most parents just hold money for their children. We did it for ours, mostly in our name legally, with our children's name somewhere on the a/c., usually nothing more than "for the benefit of"
Our grandkids have similar pots set up by their parents.
As the responsible adult, Piggy-bank does not have to set up formal trusts involving expensive fees with financial advisors..._

stueyhants

Yes we did the same. A formal trust didn't seem worth the hassle, although in some circumstances I can see it might be better.

Keep_pedalling

bostonerimus wrote: »

A junior SIPP might also be good for a portion of the money as long as you are ok with locking the money away for your child's retirement.

if that were possible it might be OK with the parent, but not with the beneficiary who should be able to access their inheritance in full once they reach 18.

The OP should take professional advice.

Malthusian

DiggerUK wrote: »

bostonerimus, never mentioned formal trusts, neither has Piggy-bank.

Yes she did. "My children are about to receive approx 100k each thru inheritance rules (so theres no will...)"

Assuming she means intestacy rules, child under 18 inherited money via intestacy = bereaved minor's trust.

She can pay whatever fees she likes but the money must be held in trust and if she mixes it with her own she is in breach of her duties as a trustee. Moreover the administrator (intestacy equivalent of executor) may have breached their duty to distribute the estate in accordance with intestacy law.

If she mixed it with her own money, used it to open a Junior ISA, and the money was there to give to the child at 18, she'd probably get away with it. (Assuming HMRC don't come after her for the tax the trust should have paid.) If she prevented them from accessing it until they were 58 she definitely wouldn't. The children are absolutely entitled to access the capital at 18.

dunstonh

Weasel words. Junior SIPP's do exist. http://www.hl.co.uk/pensions/vantage-junior-sipp

Junior SIPPs do not exist. Just because a certain provider decides to use a marketing name does not mean that there is suddenly legislation in place for a new tax wrapper. That is just a SIPP. Plain old SIPP. Nothing more, nothing less.

So do Junior ISA's http://www.moneysavingexpert.com/savings/junior-isa

Of course junior ISAs exist. However, try putting one in trust and see what answer you get.