My daughter inheritance

Benjoe

Hi. Not sure I’m on the right page, my daughter has some inheritance coming she’s only 18 18 next March. Can I pay in into my isa account for her???

Robin9

The cheque will be payable to her. Let her receive it and hold onto till her 18th birthday. Lots of time for her to think it through

Benjoe

Can we do that?? Does it not have to go into an account??

Benjoe

They won’t send it until she has an account that she can’t draw money out if that makes sense

masonic

You categorically cannot hold money belonging to someone else in an ISA in your name.

Benjoe

Ok thank you

Robisere

Start a Savings account in her name, fixed for a year, with one withdrawal allowed (or two if that's what the account does) Check the T&C's closely with regard to early closure penalties.
Or a Junior ISA, in her name, which she can use to start a savings or bank account herself.
That's what we did with our 4 grandchildren: it gets them into banking and saving early. Although you have to resist the temptation to say "Don't do/buy that, it's a waste of money!" It's her money. Have had to bite my tongue a lot! 3 of the grandchildren have reached maturity 18 years of age now, the 4th is 14 and looks like going to Uni, so the money will be handy.

Benjoe

She 18 next March

bowlhead99

Benjoe wrote: »

They won’t send it until she has an account that she can’t draw money out if that makes sense

You can open a junior ISA for her which will take up to £4,368 per tax year.

If the amount is more than that, the choices would include:
- open a fixed deposit account (that she can't touch for e.g. a year; but then that's quite a while after her birthday before she can get at it);

- tell the executor/ administrator of the estate that she doesn't have an account so they will have to keep the money temporarily until she gets in touch with them in March to tell them that she has an account and is ready for the money. This may annoy them because they have not discharged their responsibility until they've distributed the estate. If they are being paid by the estate, the delays might cost the estate more - but probably won't materially affect your daughter's inheritance.

- open a bare trust account in your name with her as beneficiary which she can't access until you transfer the cash to her next March.

What you can't do is just put it in your own bank account in your own name, because it's not your money and unless it's a trust account your bank won't recognise her as the beneficial owner - they don't recognise trust arrangements on 'normal' current / savings / cash ISA accounts.