Inheritance

Jonathan_Pickett

Where is the best place to put an inheritance for my 14 year old son? He has come into a good amount of money which is not supposed to be accessible until he is 18 years old. He has already got a Child Trust Fund set up a few years ago but this only allows an annual top up of just over £4,000. This is the same issue with Junior ISAs. What can I do with a larger lump sum? He currently has a Young Savers account with a different bank but this doesn't have a restriction on access.
Thanks
Jon

jamei305

It sounds like the money needs to be held on trust for him until he is 18, rather than paid into an account in his name. Who are the trustees named in the will responsible for doing this? There would need to be at least two of them for the will to pass probate.

IanManc

jamei305 wrote: »

It sounds like the money needs to be held on trust for him until he is 18, rather than paid into an account in his name. Who are the trustees named in the will responsible for doing this? There would need to be at least two of them for the will to pass probate.

No, there wouldn't have to be at least two trustees named in the will for it to pass probate, there could be a parental receipt clause. And even if neither provision for trustees or a parental receipt clause were present in the will probate would still be granted, and responsibility for taking care of the money until the minor is 18 would lie with the executors, who are legally "executors and trustees of this my will".

IanManc

Jonathan_Pickett wrote: »

Where is the best place to put an inheritance for my 14 year old son? He has come into a good amount of money which is not supposed to be accessible until he is 18 years old. He has already got a Child Trust Fund set up a few years ago but this only allows an annual top up of just over £4,000. This is the same issue with Junior ISAs. What can I do with a larger lump sum? He currently has a Young Savers account with a different bank but this doesn't have a restriction on access.
Thanks
Jon

If you currently have possession of the money then you could consider using a National Savings and Investments product which you can open as a trustee. Alternatively if the executors still have the money then they could do this. The trust holding could be ended and the savings transferred into your son's name when he is 18.

xylophone

If the money has been left to your son without contingency, then the money already belongs to him absolutely and you will hold it in bare trust until he is 18.

With regard to the CTF, if you contribute the maximum in his CTF year, you can then arrange for it to be transferred to JISA and make the full subscription in this tax year see link here

https://www.skintedmintedmum.co.uk/minted-blog/how-to-transfer-a-child-trust-fund-ctf-to-jisa-with-a-double-scoop-of-tax-allowance.html

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

The balance could be held in (for example) a Virgin Child Saver in bare trust and gradually transferred over.

https://uk.virginmoney.com/virgin/savings/learn/childrens-accounts/

and see information under "16th birthday".