How do I put away 50k in my child's name?

xylophone

I assume that in this very sad situation, arrangements have been made for your daughter's care in the future.

There has been no means tested support so no case for DoA.

You could take the money back into your control and simply leave it to your daughter in your will - presumably you will name your FiL as executor.

The money would then be held in Trust for your child, either as a bare trust or as a bereaved minor's trust.

https://www.bequeathed.org/wills/will-trust/bereaved-minors-trust

Or, as the cash is now in your FiL's name, it could be regarded as having been gifted to him with a subsequent decision by him to make a gift into Trust for his grandchild. This gift to him would could against your estate for IHT purposes but it may be that you do not need to be concerned about IHT implications?

The gift to the grandchild would count against his estate as a Potentially exempt transfer but it appears that IHT is unlikely to be a consideration in this case?

It would be as well to have two trustees, your FiL and MiL perhaps?

Sixteen years is a long time so that a stock market based investment would probably be a better option than cash.

It would be possible to open an account with eg Fidelity or Hargreaves Lansdown

https://help.fidelity.co.uk/site/dealing-and-managing-cash/open-a-trust-account

https://www.hl.co.uk/investment-services/investing-for-children/junior-investment-account
and hold broadly based mixed asset funds which should require little rebalancing.
https://monevator.com/low-cost-index-trackers/

Or perhaps you would prefer to use only £40,000 for such investment now? Then you could open a JISA for your child and make the maximum subscription for the current tax year in cash (so as to establish a cash fund to be available at 18) and also open
a child account for £6000 which could be moved into JISA in subsequent years.

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

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

The child's guardian would become the registered contact in the future - it could be transferred as required in the future so as to maintain the best possible interest rate.

Billie1007

Very helpful Xylophone, thanks so much for your help. I will digest this later and no doubt be back with one or two questions.

New_World_Man

If anything happened to FIL while he holds these funds (death, bankruptcy as examples) then would that be an issue?

Always a slight concern when 3rd parties are holding funds on behalf of another.

Billie1007

New World Man, that's what has prompted me to want to move it somewhere in her name. Ideally it would have been a bank account of some kind but I can't find anything I can have for a child which I can just whack 50k in to which is why I wondered about bonds. Mind you, I need to look in to the suggestions made by Xylophone, above.

Sea_Shell

It's also worth considering HOW you'll transfer the money back. Banks have a habit of getting twitchy about large transfers to external accounts.

How/when did he receive the money originally? Was it drip fed over many months/years or as a lump sum.

How old is your FiL, as banks are often wary of pensioners transfering large funds out, in case of possible collision/fraud etc.

Not saying it will happen, but just be aware that it might.

Billie1007

Thank you Sea Shell. It's been paid into over the last year or thereabouts. It was started and mostly made up with my 6 months severence pay from work and then paid in to by me and my father in law to bring it up to 50k.

He is clear that the entire pot is mine. There are no issues there.