Money for children

xylophone

If the above does not fully solve the problem, then you should obtain formal written evidence of the gift to the children and hold the money in an account in the sole name of each child until such time as room becomes available in the JISA.

xylophone

They already have CTF accounts, but the money that they will get will be too much.

Is it £20,000 each or £20,000 to each child?


You can use the CTF/JISA transfer method detailed in my post 7 above to get up to £8000 plus into each child's account.

With regard to the balance, see post 12 above and be prepared to leave the money untouched and to provide evidence that the money has remained untouched.

https://www.nationwide.co.uk/products/savings/smart-limited-access/features-and-benefits

You might consider fixed rate savings for children.

Cambridge Building Society (3 year bond)

https://www.cambridgebs.co.uk/savings#

http://www.kentreliance.co.uk/bonds/2-year-fixed-rate-bonds#tc

tazwhoever

xylophone - thanks

It would be 20K to each child (2 children). It would paid by bankers cheque to each child. But as parents, one of us needs to be a trustee with the child name.

Money is for their future use. My concern is, as I claim housing benefit, it may be affected. I would leave children's money untouched for their higher education, etc.

TELLIT01

I suggest you get formal financial advice because if you don't get it right the entire amount could be considered to be your money.

xylophone

You would open an account for each child to receive the cheques - don't forget to get written evidence from the donor that the money is an absolute gift to each child.

https://uk.virginmoney.com/savings/find/virgin_young_saver_issue_5/overview/ might do.

You could then make maximum contribution to CTF in CTF year, transfer to JISA and make the maximum contribution for the current tax year.

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

By ISA transfer - you may transfer in junior ISA savings or Child Trust Fund savings held with another provider

If this were achieved before the end of the current tax year, you would be able to make the maximum subscription for 2018/9 as well on or after 6 April.

The balance could be held in the Virgin accounts pending JISA subscription 2019/20 and 20/21.

However you should check that any of the suggestions above are suitable for your circumstances and in any event advise your benefit provider (s) of the gifts prior to receipt and be prepared to provide evidence that the accounts remain untouched except for transfer to JISA/other child. accounts which also remain untouched.

tazwhoever

xylophone - thanks

"The £20,000 to each child being gifted now by a kind relation should (carefully saved/invested), enable them to make a good start on the deposit for a house when the time comes."

How can I be sure that investments/savings wouldn't affect mean tested benefit? As TELLIT01 states, there may be a possibility.

poppy12345

tazwhoever wrote: »

xylophone - thanks

"The £20,000 to each child being gifted now by a kind relation should (carefully saved/invested), enable them to make a good start on the deposit for a house when the time comes."

How can I be sure that investments/savings wouldn't affect mean tested benefit? As TELLIT01 states, there may be a possibility.

I thought you said it was for your childrens future education? :eek:

tazwhoever

xylophone wrote in another thread - "The £20,000 to each child being gifted now by a kind relation should (carefully saved/invested), enable them to make a good start on the deposit for a house when the time comes."

This is what I was replying to. Yes the money is for future education.

Penitent - the relative is very old, it's a kind gift to my children. (#19).

TELLIT01

The potential problem is that if the OP has any form of access to money held in the name of a minor (child) there is the possibility of it being treated as their capital.

teddysmum

Would it not be better for the relative to invest the money ?


Another point :this donation doesn't seriously deplete the relatives assets, as deprivation has to be considered if they need care?