£15,000 each, my kids.

Tentman_2

Ok, not exactly kids, one is 20 and the other is 22, both at university and both have been given £15,000 each. The money has to be used for a first time buyer ISA. My question is how is the best way to go about this because you can't just put it all into this type of ISA in a lump sum. So where should the money be placed while each month the max amount is paid into the first time buyer ISA....? Cheers.

xylophone

Each will open a LISA?

https://www.gov.uk/lifetime-isa

https://www.moneysavingexpert.com/savings/lifetime-isas/

Savings rates here

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

Sea_Shell

So a gift with strings then. Surely it's up to them how they use the money, otherwise it's not really a gift!!

Tentman_2

Sea Shell, yes, strings attached, what's the problem with that and more to the point why would you have an opinion on how my parents want to help my kids...

Sea_Shell

Your 'kids' are adults.

If your parents are that worried about how the money is saved maybe they should drip feed the 'gift' so as to fill Htb ISA' s based on current limits.

If they gift the full £15k up front, they lose control, full stop.

Tentman_2

Thank you xylophone

Alistair31

Make use of this years LISA allowance then use next years allowance in April. That’ll be £8k for each of them put away come the end of April. Really it will be £10k each as they’ll receive the government bonus.

Tentman_2

Sea Shell, of course my parents lose control but it is their request (as they are both old and not well) that the money is used for my "kids" to buy their first house. If you can give me some practical advice that would be great, if all you can do is go on about the ethics of the gift can you please just scroll on by.

Tentman_2

Alistair, So really within about 2 years most of it will be in the first time buyer ISA so we might as well put the lump sum in a normal account where we can just transfer the money easily into the ISA etc. I suppose I was wanting to know is there a good way of getting a reasonable interest on the lump as it transfers over to the ISA. I imagine not... Thank you for helping me understand how quick most of the cash will actually end up in the ISA

Sea_Shell

I just thought you might want to bear in mind that although it may be their wish...they can't make them use it all for that. What if they, say, need a new car to get to work in the meantime?

Just sayin'. I'm always considering the practical.

Zero_Sum

Sea_Shell wrote: »

I just thought you might want to bear in mind that although it may be their wish...they can't make them use it all for that. What if they, say, need a new car to get to work in the meantime?

Just sayin'. I'm always considering the practical.

Theres nothing wrong with wanting to make sure it isnt wasted. And you can get a cheap run around for a few huundred quid if a car is needed.