junior ISA, can they be locked

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
3 replies 665 views
pms01pms01 Forumite
9 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi,

got a problem i cant seem to get an answer to, i have paid into a junior ISA for my grandkids for years, one is now approaching 18 and i feel sure he will cash in the savings and spend it on the first day. I dont like saying this but probably drugs are involved, is ther any way i can lock, hide, move the money so he cant get at it till hes 21 ? I dont want to feed a drug habit.

Replies

  • eskbankereskbanker Forumite
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    The answer is at https://www.moneysavingexpert.com/savings/junior-isa/:
    It's their money. At age 18, they can do what they want with the cash

    From the day the cash goes in a junior ISA, it's the child's money, not the parents'. So you must remember at age 18, whatever you've planned for the money – such as building a mortgage deposit for them – the money's actually entirely your child's, and they can do WHATEVER they want with it.

    So while you may have a cute toddler now, they could grow up to be a rebellious 18-year-old. Even if that's just a phase, when the money in junior ISAs finally becomes accessible, on their 18th birthday, it becomes theirs to do as they will.

    To take it to its extreme, here's a question Martin was asked: "Could I stop them if they wanted to buy drugs with it?" The answer is no.
  • AlexlandAlexland Forumite
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    I know parents who have caught the post and moved the money somewhere safe before the child has even become aware of the existence of a JISA pot. However if they are nearly 18 then it's probably too late as they probably already know about it and maybe have taken over control at 16.

    Not saying it's right (several people may chip in and confirm it's definitely not) but it happens.

    Alex.
  • bowlhead99bowlhead99 Forumite
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    pms01 wrote: »
    Hi,

    got a problem i cant seem to get an answer to, i have paid into a junior ISA for my grandkids for years, one is now approaching 18 and i feel sure he will cash in the savings and spend it on the first day. I dont like saying this but probably drugs are involved, is ther any way i can lock, hide, move the money so he cant get at it till hes 21 ? I dont want to feed a drug habit.
    Speak to his parents/guardians to see if they can help out with some strong-arm tactics.

    On that 'first day', he will be an adult and he can legally withdraw the money, but also on that day his parents will no longer have a legal obligation to care for him or house him etc.

    So for example they can tell him that he has this money but you don't want him to spend it before he is 21. And that he's welcome to spend the money before age 21 because it's legally his, but if he does, he will mostly be needing to spend it on rent, food and bills because they are no longer going to be providing him with accommodation or meals and they'll cut him out of their life for his ungrateful behaviour (for going against your wishes)...

    ...whereas if he keeps it untouched until 21 they will continue to help supporting him as much as they were already going to do.

    Of course, such a tactic relies on them agreeing with you that it is more appropriate for him to leave the money untouched for a further three years. They might not agree that he should, because he has to learn to be an adult at some point and although 'boys will be boys' they will love him and support him no matter what. And for example, they might think that:

    (a) they have brought him up well enough that he won't just immediately blow it on drugs and booze, or

    (b) he is old enough to take some personal responsibility (he has to at some point) so if he does just blow it and doesn't have it available to spend on something more useful in a few years time, he will have learned a valuable life lesson on the downsides of cashing in and blowing your savings on short-term fun.
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