Investing in Junior Isa for my child when on I’m onESA benefits

Roco2208

  My parents wish to invest in a S&S JISA for my daughter. I am on ESA disability benefits so, even if I could afford to, I would be penalised in terms of Benefits. I wrote a letter to the DWP asking if I could open a Jisa for the minimum amount with my parents topping it up with maximum  contributions. It would not be from my income and neither I nor my daughter ( until she was 18) would have access to the money. 

A person from The DWP rang me back some 2 weeks later saying they “ didn’t think That that could be done as the JISA money was yours” ( which it clearly is not). This contradicted what I had read in this Forum. She further reduced her credibility by suggesting I look on the “ Martyn Lewis website” ( not that it’s bad advice but it is the DWP that sets the rules)
She compounded her lack of credibility by suggesting my parents check out the “ Grandparents’ ISA” which I have never heard of and could find no trace. She did admit she had been drafted from another dept. and had beentold to get through the backlog.

I would greatly appreciate advice on this.
cath

xylophone

That that could be done as the JISA money was yours” 

Once in a JISA, the money belongs to the child absolutely and can only be accessed( except in the saddest of circumstances) by the "child" ( actually young adult who has reached his majority) at the age of 18.

There is no such thing as a "grandparents ISA" - the grandparents (or indeed anybody else) may contribute to the JISA once it is opened by the adult with parental responsibility for the child.

And incidentally, you yourself do not need to contribute at all - once opened, just give the grandparents the sort code and account number - just keep a check that no more than the annual permitted subscription is made each tax year.

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

masonic

The money wouldn't be yours, you would only have control of it to pick investments and transfer it to a different JISA in the child's name. See https://www.gov.uk/junior-individual-savings-accounts/add-money-to-an-account
It would not have to be declared by you as part of a means test, the only way it could theoretically cause an issue is if you paid in a large sum and it was considered deprivation of assets, but it should be possible for you to apply for an account and the grandparents fund it without a penny coming from you.

Alexland

xylophone said:

And incidentally, you yourself do not need to contribute at all - once opened, just give the grandparents the sort code and account number

Some providers might require an initial deposit so it's worth checking in advance but I agree the cleanest way is for a parent to open the Junior ISA account with a provider that doesn't require an initial deposit and then for the grandparents to contribute directly.

masonic

Alexland said:

xylophone said:

And incidentally, you yourself do not need to contribute at all - once opened, just give the grandparents the sort code and account number

Some providers might require an initial deposit so it's worth checking in advance but I agree the cleanest way is for a parent to open the Junior ISA account with a provider that doesn't require an initial deposit and then for the grandparents to contribute directly.

I think the only thing to watch out for is if the initial deposit must come from a specific registered bank account in the name of the child or parent. Otherwise, providing the grandparents are available to make the opening deposit by debit card, bank transfer or cheque, then it is unlikely to be an issue.