child trust fund / ISA

iammumtoone

How do child trust funds/ISAs work when the child becomes 18 and can access the money.

If I set one up for my son but didn't tell him about it, when he is 18 could I monitor how much he had access to and when?

I want to set up some kind of saving account for him if he decides to go to university etc. He has some problems which means I am unsure if I will trust him to do what is sensible with the money, if he can access it all at once.

I don't want to be able to withdraw the money for him but I would like to be able to set a maximum amount to be withdrawn per month for example with having the option to change this if he needed a larger amount out at one time.

I suspect the answer to the above is a no at 18 people are adults but everyone matures at different rates (due to his problem my sons maturely age is below his physical age).

I don't want to save for him only to have him to blow it all at once then still have to top him up if he goes to university, but I guess that is the chance people have to take?

xylophone

The child is legally entitled to control (but not access) the account at age 16 and to access it at age 18.

https://www.gov.uk/junior-individual-savings-accounts

iammumtoone

xylophone wrote: »

The child is legally entitled to control (but not access) the account at age 16 and to access it at age 18.

https://www.gov.uk/junior-individual-savings-accounts

But thats only if the child knows about it

Would it be possible to set one up and only tell him about it when I believe he is old enough to manage it, that could be when hes 20 for example.

Or does the money have to be transferred out at 18 meaning he will have to know to put it elsewhere?

Alexland

If you go with an investment platform it's harder to get access to it on a whim than a high street bank? Some offer linked accounts which may enable you access beyond the 18th birthday via your account?

I am not saying it's right (it's definitely not) but I know parents who have got up early in the morning on the child's 16th and 18th birthday to catch the post.

I even know one who logged in and withdrew the money back into her account (presumably via the offspring's bank account) to manage and the offspring never even knew about the money. I guess they never checked the post in the mornings (or whenever Royal Mail turnup these days). She is currently transfering it gradually back to the offspring to pay university costs as they occur.

Alex.

stoozie1

I have the sameconcerns about my children's maturity and large sums of money at 18.

I am just keeping the money in an ISA in my name, then I can give it to them when needed/mature enough.

xylophone

The parent cannot withdraw money from a CTF or JISA ( except in sad circumstances)

Example

http://www.wesleyan.co.uk/pdf/57151/cashjuniorisacustomerguidetandc

} All money paid into the account will represent a gift
to the child, and once it is invested in the account it
cannot be taken out. Only the child can access the
money when they reach age 18.

The accounts become adult ISAs when the child turns 18 - it follows therefore that the financial institution will only deal with the child at that age.

xylophone

Regarding mentally impaired children with CTF/JISA reaching age 18

https://www.sinclairslaw.co.uk/news/child-trust-funds-disabled-children/

https://www.moneywise.co.uk/news/2017-01-19/families-disabled-children-warned-about-charges-to-access-savings

iammumtoone

xylophone wrote: »

The accounts become adult ISAs when the child turns 18 - it follows therefore that the financial institution will only deal with the child at that age.

Yes I understand that I don't want to withdraw the money myself. But what if at 18 the child didn't know they had this account, and only got told of it at an age when they could be responsible for it. How would the child find out about it if the parent decided not to tell them?

I noticed on one of the links you can either have ISA/or child trust fund. My son had a child trust fund set up by the government, would it be better to continue to pay into this or transfer to a child ISA?

iammumtoone

xylophone wrote: »

Regarding mentally impaired children reaching age 18 CTF/JISA

He not classed as mentally impaired he has ADHA and most likely ASD, neither of these would be a reason for me to manage his money, it just means at 18 he is unlikely to have the maturity needed and will waste it, but that could be said for a lot of 18 years olds.

IanManc

iammumtoone wrote: »

But thats only if the child knows about it

Would it be possible to set one up and only tell him about it when I believe he is old enough to manage it, that could be when hes 20 for example.

Or does the money have to be transferred out at 18 meaning he will have to know to put it elsewhere?

At 18 the account and the money in it become your son's. You no longer have any control over the account, and can't manage the account any more.

I would expect that the provider will write to your son as account holder to ask for his instructions. To keep it secret what are you going to do? Intercept his post from the provider whenever it comes and keep it from him until he's 20, or some other age when you've decided he's "mature enough" to know about and control his own property?

I don't envy your situation and I'm really not having a go at you, but I think that the only practical - and lawful - way forward is for you to sit down with your son and try to have a really serious talk with him about the money, what you hope he'll do with it and what he could achieve with it, and how sad you'd be if he wasted it, and perhaps offer to carry on managing it with him.

xylophone

But what if at 18 the child didn't know they had this account, and only got told of it at an age when they could be responsible for it.

It is quite possible that the Bank/building society would write to the young adult?

Would you propose intercepting his post (quite possibly illegal)?