JISA Transfer to LISA

Shimergo

My 14yr-old daughter's been lucky enough to get an early inheritance from living grandparents - £20k, payable to my wife and I. If we drip feed it into Junior ISAs over the next 4 years, could she then put it all straight into a Lifetime ISA at 18 and immediately get a £20k x 25% bonus, or would she still then need to drip feed it into the LISA at £4k per year?
Thanks!

eskbanker

The LISA contribution limit applies to inbound transfers from all non-Lifetime ISAs as well as new money, so it would need to be drip-fed at £4K/year.

xylophone

My 14yr-old daughter's been lucky enough to get an early inheritance from living grandparents - £20k, payable to my wife and I.

If this is an absolute gift to your daughter, it should be paid into an account in her name now (with you as bare trustee) - you can then transfer it to her JISA as proposed.

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

may suit.

Zorillo

They should make JISA convertible to LISA at 18, with some sort of bonus capped at a sensible level perhaps. It'd be a massive incentive for young people to carry on with the habit.