CTF to JISA Transfers

Atno81

I am currently in the process of transferring three of my kids CTF's with various providers to S&S JISA's with HL, investing in the Vanguard LS Funds (may choose different equity amounts for different kids depending on age - decision still to be made). I have completely ignored their CTF's until now and only just getting a handle on this quite late in the date, after finally getting to grips with my own finances. I had to locate their providers as it was done automatically and register as the contact, which was all straight forward, and these are now ready to transfer.

However with my eldest, who is 16, I did actually register her CTF myself. This means my maiden name is down as a registered contact. NatWest will not change my name without a marriage certificate. I'm no longer married, have no idea where the marriage certificate is, and do not wish to go ordering a new one for the sake of this. Should I leave this to run until she's 18? Or if she took control of this herself now, is there something better we can do with it? (She will allow me to look after this for her, and trusts my financial advice). I'm not sure if there's much point now in moving it?

I will be regularly adding to these accounts, even after 18, as my contribution to their house deposits. They are aware of this and agree they will not touch these accounts until they come to buy a house. So my 16 y/o's CTF won't be "cashed in" for cash in 18 months. It'll be going into a S&S ISA if we can't move it to a JISA now. Not sure if that makes a difference to the above decision?

Thanks in advance.

Alexland

Atno81 said:

I am currently in the process of transferring three of my kids CTF's with various providers to S&S JISA's with HL, investing in the Vanguard LS Funds

Once the transfer completes you may wish to onward transfer again from HL who charge 0.45% pa to Vanguard Investor who charge 0.15% pa (for child or adult accounts) or Fidelity who charge nothing for JISAs holding funds (but that increases to 0.35% at age 18). Vanguard would allow you to transfer the VLS fund(s) 'in specie' to their platform with no time out the market.

Atno81 said:

However with my eldest, who is 16, I did actually register her CTF myself. This means my maiden name is down as a registered contact. NatWest will not change my name without a marriage certificate. I'm no longer married, have no idea where the marriage certificate is, and do not wish to go ordering a new one for the sake of this.

Have you spoken to HL to determine if they will allow you to open the JISA using your current name (assume you have a passport or driving license if required?) and submit the CTF transfer request even if the old provider has your old name? The account belongs to the child and their details should match?

Atno81 said:

I will be regularly adding to these accounts, even after 18, as my contribution to their house deposits.

Once they become adult ISAs then the contribution will probably need to come from them via their bank account (you can still gift them the money by bank transfer). From age 18 they call apply for a Lifetime ISA (in cash or s&s) for a 25% government bonus of up to £1k per tax year on contributions of up to £4k per tax year on a qualifying property purchase worth up to £450k. S&S investments are for the medium to long term so it depends when they will be in a position to purchase a property.

Atno81

Alexland said:

Once the transfer completes you may wish to onward transfer again from HL who charge 0.45% pa to Vanguard Investor who charge 0.15% pa (for child or adult accounts) or Fidelity who charge nothing for JISAs holding funds (but that increases to 0.35% at age 18). Vanguard would allow you to transfer the VLS fund(s) 'in specie' to their platform with no time out the market.

Have you spoken to HL to determine if they will allow you to open the JISA using your current name (assume you have a passport or driving license if required?) and submit the CTF transfer request even if the old provider has your old name? The account belongs to the child and their details should match?

Once they become adult ISAs then the contribution will probably need to come from them via their bank account (you can still gift them the money by bank transfer). From age 18 they call apply for a Lifetime ISA (in cash or s&s) for a 25% government bonus of up to £1k per tax year on contributions of up to £4k per tax year on a qualifying property purchase worth up to £450k. S&S investments are for the medium to long term so it depends when they will be in a position to purchase a property.

Thanks so much for your reply. I did write a lengthy reply to this, but clearly clicked the wrong button as it has vanished?! (New to MSwe can make the necessary adjustments that way. I'm not touching that just yet until I can figure out the best route.

The kids will be opening a LISA at 18 and putting their own house deposit contributions in there (as it stands). I'll review that with each of them when the time is closer, but this was the outcome of a 'family meeting' that they'd do their own savings in their LISA, and the S&S ISA will be there for them too (with my payments in). A house is a minimum of 10 years away - more for the younger ones - so I thought S&S ISA would work from what I'd read. Would 10 years be enough, if they were to use the money for that purpose?

As a single mum of 4, I probably won't have a lot to give, and I know that life can throw many curveballs, so it was my thinking that if they had some money in their S&S ISA, if something occurred in life that required access to this money, they could use it. Or if they DIDN'T need it for a house purchase when they arrive at that point (They'll likely have more help from Dad and his family, who have the ability to help with deposits and have already stated their intentions to do so), then they can continue to invest that. Just trying to cover all bases, I guess, as the course of life will run differently for all of them. At 33, I'm only just figuring out how to be financially responsible, so trying to do what I can to make sure they succeed from the off!E Forum)

Vanguard was my preference, and I have just opened my first ISA with them myself, but just chose HL for the kids simply as they accept transfers in from CTF's. Is it as simple as just switching straight to Vanguard after opening the JISA effectively using HL as a stepping stone? Is there any negative consequence of that?

I'm awaiting a response from HL regarding a possible transfer for the eldest. The form states I must be the registered contact, and as these details differ, I'm making an assumption it wouldn't be that simple and that it might be easier for her to opt to manage it and 

Alexland

Atno81 said:

A house is a minimum of 10 years away - more for the younger ones - so I thought S&S ISA would work from what I'd read. Would 10 years be enough, if they were to use the money for that purpose?

Yes 10+ years should be plenty of time for the stock market to crash and recover (especially if you consider the benefits of reinvested dividends while market prices are lower) although you might want to consider the derisking strategy as they get in the final 5-7 years before withdrawal. The crash and recovery last year was very quick compared to how long it has previously taken to recover.

Atno81 said:

Vanguard was my preference, and I have just opened my first ISA with them myself, but just chose HL for the kids simply as they accept transfers in from CTF's. Is it as simple as just switching straight to Vanguard after opening the JISA effectively using HL as a stepping stone? Is there any negative consequence of that?

Yes neither Vanguard or Fidelity accept CTFs but once it's a JISA on HL then there's nothing stopping you transferring it out again as HL don't have exit charges. You can even invest in a Vanguard fund on HL and then move the investment, without more time out of the market, to Vanguard's platform. Just make sure that the exact same investment choice is available on both platforms. Apart from the cost of printing another form and posting it to Vanguard the only negative consequences are to HL shareholders and transfer admin staff.

Atno81

That's hugely helpful @Alexland - Thank you.