bank account wfor child with restricted access untill aged 18

newcastle1962

Hi my daughter aged 15 has been left a pension in her dads will. The pension firm have requested i open an account in her name with 2 surerties. I have tried various banks but to no availa as most stop at 16. Then the child has access. They have requested she has restricted access until age of 18. Any ideas!

xylophone

Do you mean that two trustees are required?

Is this pension a lump sum or is it a regular monthly income to be provided while she is under a certain age/in full time education?

If it is a lump sum, it should be possible to open an interest bearing savings account in bare trust for your daughter - example

https://www.bathbuildingsociety.co.uk/savings/personal-savings-and-investments/supersaver-

It should be possible to move sums from this account into her CTF/JISA if required as this is an account which she cannot access until the age of 18.

If required, it should also be possible to open a current account in bare Trust for your daughter - other posters have mentioned Natwest and Metro Bank in this connection.

newcastle1962

Thanks for your reply. it is both. She will inherit a lump sum of £13000 and a monthy pension of approx £300.

I need to open an account where access is restricted and 2 sureties are named. Most building/bank accounts parental control ends 16 then revert to the child. Most only allow one named adult. I will have a look at the one you suggest.

newcastle1962

yes two trustees frequired.

xylophone

Perhaps you and your daughter's uncle/aunt/grandparent could be the Trustees.
I am assuming that by "access restricted" you mean that the child is not to have access or control until the age of 18.

This does mean that any accounts must be held in bare trust for your daughter, or that a CTF/JISA is used.

I would think that the easiest way to handle this is first to set up the bare trust current account and have the lump sum and monthly pension paid into it.

Does your daughter have a CTF? Have you contributed this year?

If not, you might make the full subscription for the CTF year, arrange a transfer to JISA, (the best paying cash JISA is currently offered by the Coventry BS - 3.6%) and then make the full subscription for the tax year to the JISA - potentially close on £9000 of the lump sum would then be catered for.

You could then put the balance elsewhere - here is another suggestion

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

and move it to JISA in 20-21.

I would have thought that the £300 a month could be used for her general day to day needs - school uniform/trips/clothing/ holidays etc or saved as required.

newcastle1962

thanks. Do you know how much the bare trust account would cost to set up?

newcastle1962

hi the Nationwide account is ony available for children up to age 15y. As my daughter is soon to be 16 sheis not eligible. I have been to a lot of branches bamks/building societies and very few carry on over age 16. I will look at a bare trust but i am not familiar with hsi product.

Yes she has a stocks and sahre JISA opened this year so that is a possibility.

This whole process has been so stressful the last thing you need when a parent dies. The pension fund have been worse than useless!!

xylophone

Have you checked that NW won't allow the account to be opened - if your child is aged only 15 now then she would appear to qualify?

it would be worth an enquiry?

To open this account, you must be:

an adult aged 18 or over with parental responsibility for a child who lives with you for at least some of the time – at the time of opening the account, the child must be aged between 0 and 15 years, however the account can be held until such time as the child is 18 years and six months old

Once the child has reached 18 years and six months old the money will transfer to an instant access savings account and the terms and conditions and interest rate applicable to that account at that time will apply. The account will remain in the name(s) of the adult(s) (with parental responsibility) until the adult(s) transfer the new account, into the child’s sole name.

With regard to a bare trust, there is no charge for opening such an account - it is simply a way of a person or persons holding an account for another person who is the absolute beneficial owner of the money/assets in it and who has the absolute legal right to call for access and control at age 18.

Thus with a bank account, John Smith and Mary Jones, Trustees of Alice Jones.

The CTF/JISA already has the inbuilt protection of not being accessible by a child until age 18.

You say that your daughter already has a JISA - does this mean that you transferred the CTF that she would have been entitled to at birth?

If you draw a blank with Nationwide you could try Bath BS as above or the Skipton BS.

https://www.skipton.co.uk/savings/childrens/childrens-saver might suit?

newcastle1962

hi Nation wide said i could only have one surity on the account. I will try again.

I have transferred her child trust fund to a Junior ISa and pay in mothly. Its with Foresters.

So with a bare account if i went into a bank etc they would know what i was speaking about?

newcastle1962

Ive just had a look at the Skipton one. It looks good however it says paymfents cant be made into it by either direct debit or standing order. It would therefore depend how the pension is paid. I guess as its one paid every month then it would be by DD.

Why do banks etc make things so difficult?

xylophone

If you are able to open the Trust current account with Metro Bank or Natwest, you should be able to make a transfer from the current account to the Skipton account.

Remember that with the JISA it is possible to have both a stocks and shares element and a cash element.

If you did not want to use pension money in the stocks and shares element, and assuming that you haven't used the full allowance for the year, you could open a cash JISA with the Coventry and contribute the cash element.

See https://www.gov.uk/junior-individual-savings-accounts

Try first to open the Trust current account.

And say Trustee, not surety.

And have you tried Bath Building Society?