Junior ISA's

nozzla

We've been putting money into a junior ISA for over 4 years, all from child benefit. Issue now is that we've realised that we shouldn't have received the child benefit due to the high earners tax.

I've read many Terms and conditions so expect the answer is no, but is there any other way apart from death or terminal illness whereby a parent can take money from the ISA?

Alexland

Although I cannot help you get the money out the Junior ISA it is worth remembering that there are methods such as making pension contributions to reduce your Adjusted Net Income(s) such that you may still qualify for some or all of the child benefit.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/reduce-high-income-child-benefit-charge/#

Alex.

Tom99

With a JISA I think you get 30 days to change your mind and that's it.

JayTee123

Sorry if this should be a new thread - I'm new to this and it may well be in the wrong place!

This is a separate question. (I'm at the opposite end of the financial spectrum and can't shed any light on it).

Can parents who live apart (no longer in a relationship) both hold a JISA? To clarify, I am aware that a child can have two JISAs - one cash and one stocks and shares, but can each have a different registered contact?

I haven't managed to find any info on this elsewhere. Reason for asking is that unfortunately things are very poor between ex and I and I don't know if our little one has a JISA at all - there was some talk of her opening one but I don't know if she ever did... (any help as to how to find out without having to ask outright would be good - I know you can do it for CTFs)

At this moment in time I'm not certain that a JISA is the way to go - whilst I realise that only the child can access it when they're older, the reality is that her mother is a financial black hole and can be very manipulative, so even when she reaches 18, I'm not sure I would be happy with all control over the money being in her hands due to her mother's influence who she lives with most...

xylophone

I've read many Terms and conditions so expect the answer is no,

You are correct, (except in the saddest of circumstances).

https://www.gov.uk/junior-individual-savings-accounts/if-your-child-is-terminally-ill-or-dies

xylophone

https://www.gov.uk/guidance/junior-individual-savings-accounts-for-managers-isas-setting-up-junior-isas

There is no indication above that there can be more than one "registered contact" at any one time.

At this moment in time I'm not certain that a JISA is the way to go

There are other ways of saving in bare trust for your child but remember the "£100 rule".

However, the child has an absolute right to access and control of such assets at the age of 18 (16 in Scotland).

You might just consider your own ISA as "earmarked" for your child and make a gift at a time you consider suitable?

There seems to be no way of checking whether a JISA is already held except for asking your ex wife.

JayTee123

Thanks for the info (and suggestions). I haven't heard of the £100 rule but maybe if I search up bare trust I'll be enlightened! Yes, whilst I know that legally etc. the money is hers, I can't exclude the possibility she may be subjected to some form of emotional blackmail. As I don't currently have an ISA, I could do as suggested - open one and consider it earmarked...

I guess that should allow the same benefits (aside from it being locked away - I think it's important enough for me to leave it alone) whilst allowing me to decide if and when to grant access to the result...

xylophone

Re "£100 rule"

https://www.gov.uk/savings-for-children

http://www.taxagility.com/parental-trusts-for-children/

JayTee123

Aha ok, I see what you mean about the £100 rule...

A slightly different question now taking into account that children can hold two junior ISAs - a cash ISA and a stocks and shares ISA. Can you decide to 'sell' the stocks and shares in that ISA before maturity and either hold it as cash or move it to the cash ISA.

My thinking is thus - if your child's stocks and shares ISA has performed well to date but the ISA will be reaching maturity in the next couple of years, it would be good to be able to secure the value of the pot to protect it against market variations which may or may not happen in the final period before maturity.

Alternatively are the funds kept completely distinct with the money in the stocks and shares ISA locked in until maturity no matter what?

Zorillo

Yes, you could do that. You can't contribute more than c.£4100 (not the exact figure) in total across the S&S and Cash JISA in any one year, so there's no danger of breaking any rules by holding cash in the S&S part.

xylophone

https://www.gov.uk/junior-individual-savings-accounts/add-money-to-an-account

You can transfer money between:

your child's Junior ISAs