What to do with 10k for child?

justme111

Sorry for your loss.
If you are adamant you want 0 risk you could do this
https://www.nationwide.co.uk/products/savings/future-saver/features-and-benefits
It stays in your name even when she is 18 until you decide to release it.
Hopefully the interest will remain competitive.

I think some money for wasting could be good as once it happens one is likely to learn the lesson and that may be worse it. Or may be she is going to be eminently sensible

londoninvestor

bytheseas wrote: »

Here's what happened. She was diagnosed with terminal cancer. Had no will up until that point. Decided to make one and send it off. She passed away much faster than was expected when we got in touch with them the will had apparently failed processing.

Prior to her death we had had a conversation where she had told me I would be getting such and such and my daughter would be getting such and such. These monies mainly came from life insurance with a little savings too.

We didn't have to go through probate and my step father passed me a cheque for mine and my daughters money once the insurance paid.

Thanks, and I'm sorry for your family's loss.

As to whether this means your daughter owns the money herself with you as a trustee, or whether the money legally belongs to you:

• Without a legal will, your daughter would not legally have inherited any money herself - the way the laws of intestacy work is that a grandchild could only inherit if their parent has died first. (However, it does sound like if the will had been formalised as was intended, the money would be your daughter's and she would have the right to control at 18 - that's not legally binding on you, so only you can decide how it affects your actions.)
• Was any of the money legally inherited by your stepfather, but then gifted by him to you / your daughter? If he gifted it to your daughter with you as a trustee, then it's hers and she has control at 18.
• You mention life insurance - do you know if that was "written in trust"?
  • ....If so, then it bypasses any will or intestacy process. The money belongs to who the trustees give it to (usually in accordance with an expression of wishes by the deceased). If the trustees gave it to your daughter, then you're holding it on trust for her and she gets it at 18.
  • ....If not, then the life insurance money follows the same rules as the rest of the estate.

Again I'm sorry for the "legalistic" approach at a difficult time. I have to say I'm not a lawyer and it could well be worth a discussion with a solicitor to make sure everyone is clear on the status of the money.

Mr_Kebab

Sorry to the OP, I've lost both parents to cancer in the last 14 months so I can feel your pain.


I'm a bit of a long time lurker to the site, but joined as this thread has relevance for me.



My Dad left 20% each to my two kids in his will so I'm expecting around £50-60k each once the house is sold for me to look at investing/saving etc.



I've looked at Bonded savings account for both of my kids (Coventry does one at 2.3% fixed for 5 years), but really if anyone has other ideas please let me know!

cloud_dog

So, the terms of the will stipulate that the money is your children's and they are the legal 'owners' of the money at age 18?

How old are your children?

xylophone

My Dad left 20% each to my two kids in his will

If the bequests are "indefeasibly vested" (absolute and unconditional) then you will hold each child's share separately in his own name with you as bare trustee.

Each child will have the right to access and control at age 18.


Does each child have a JISA? It would be possible to pay up to the maximum each year into these.

Coventry offers 3.6% on a cash JISA.



https://www.bathbuildingsociety.co.uk/savings/personal-savings-and-investments/supersaver may be worth a look for each child.

Do you have a current account with Nationwide? See

https://www.nationwide.co.uk/products/savings/future-saver/features-and-benefits

With regard to opening Fixed Rate deposit accounts ("Bonds") for each child, you will need to check with the provider that they can be held in trust.

https://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html

Mr_Kebab

Children are 9 and 13 (although soon to be 10 and 14) - I'll take a look at the wording of the will and let you guys know.

Mr_Kebab

Thanks for the info about the accounts etc. I'll take a look at some of those. The JISA looks a good way to get a little bit put away.

xylophone

9 and 13

Then they will each have a CTF? It is possible to move this to JISA and get a "double dip" which could enable a higher contribution in this tax year - see

https://www.skintedmintedmum.co.uk/minted-blog/how-to-transfer-a-child-trust-fund-ctf-to-jisa-with-a-double-scoop-of-tax-allowance.html

Mr_Kebab

Thanks for the additional info