Inheritance

Crockatt

My now 16yr old daughter was left £50,000, about 10yrs ago, it was split up and 20,000 was put in an RBS account and the rest in a nationwide account, both accounts were set up in my husband's name for our daughter, her name is also on the accounts,  I don't think the money is doing the best it can, and feel it should be relooked at, my daughter doesn't know about the money, but I think with her being 16 now, would she automatically become in full charge of it?, could we try and move money about without her knowing?, I just don't want her going through her life thinking she had all this money to fall back on, I'd rather she grow up abit first, but of cause if it's her legal right then of cause, she will be told. Are there any good savings accounts that would be good? Any help would be appreciated. 

Alistair31

Jeeez, could probably have doubled it by now if it had been invested rather than saved. 

MEM62

Crockatt said:

I'd rather she grow up abit first, but of cause if it's her legal right then of cause, she will be told.

Then you have two years left to encourage her to "grow up" as, once she reaches 18, she is entitled take over her own affairs. 

foofi22

Alistair31 said:

Jeeez, could probably have doubled it by now if it had been invested rather than saved. 

Or it could be down 20%.  Easy to say in hindsight.

Crockatt

At the time we were trying to do stuff with it the banks just wouldn't help, they were changing things around apparently and then life got in the way, but yes I'm annoyed at what could of been.

Albermarle

foofi22 said:

Alistair31 said:

Jeeez, could probably have doubled it by now if it had been invested rather than saved. 

Or it could be down 20%.  Easy to say in hindsight.

Over 10 years the balance of probabilities is heavily in favour of investment increases ( not necessarily double though ) , whilst statistically the chance of a loss is < 10% .

MX5huggy

You need to tell her, it’s her money. You must know her general attitude to money, if you give her £20 does it evaporate or will she still have £20 in her pocket a month later (even if she has scrounged another £20 off you). You could start a conversation about what she would do if she won £50k on a scratch card.

This £50k represents an opportunity, imagine in 10 years when you feel she’s old enough to handle the money she’s working at the local salon in a steady hair dressing job all good. You give her the £50k she’s furious because she wanted to go to med school but never mentioned it before because she knew it was not affordable. The best investment you can make is an investment in yourself. 

Crockatt

Can anyone suggest any good accounts,  investments etc

AlanP_2

Good for what?

I think you need to talk to your daughter - what does she want the money for?

It could be a house deposit for example at some point in the next few years.

Bobziz

As above, the money is likely to become legally hers in two years. Consequently investing for that period wont be appropriate as she may want to do something with the money within 5 years of turning 18. 5 years is the minimum period recommended for investing.

That leaves you with a savings product. The main mse website has a table of market leading rates at the current time.

Would she be open to going on the mse open university finance course with you ? This would help her to make good financial decisions as an adult. It might also make it easier for you to explain to her why her £50k is not now worth considerably more. 

https://www.open.edu/openlearn/money-business/mses-academy-money/content-section-overview?active-tab=description-tab

Keep_pedalling

MEM62 said:

Crockatt said:

I'd rather she grow up abit first, but of cause if it's her legal right then of cause, she will be told.

Then you have two years left to encourage her to "grow up" as, once she reaches 18, she is entitled take over her own affairs. 

Unless the OP is in Scotland, where she is already grown up.