LISAs paying in question

gele

Hi all.
My daughter is 18 and i want to encourage her to open a LISA. She is still at college therefore and not working so not earning yet. The question is, can I as a parent simply pay in £4k a year [I have saved child benefit money] for her. I wasn't sure if this was allowed or if it had any implications for me in any way.
Thanks

Albermarle

Probably easier that she  pays the money in, simpler that way anyway. 
So just give her the £4K and make sure she does not spend it on something else!
There are no implications on giving money away in this way, apart from it is not yours anymore of course.

gele

perfect. Thanks

gele

Ok, long story short[er]  Daughter opened LISA with Bath Building society, then when logging on online account said closed. Bath had just gone to local postcodes only so she wasn't sure where she stood and couldn't contact them at the time so opened a Paragon one instead. Now it transpires Bath is up and running so with better interest rate she has paid her £4k into that. Paragon is empty. Can she just leave it and after a period of time Paragon will close it automatically?

eskbanker

Probably tidier to cancel (rather than close) the Paragon LISA if it's still within the 14 day cooling off period, but yes, if she never paid into it and it's left empty, then it'll be closed off at some point.

gele

Thanks eskbanker. Im not quite sure how close it is to cooling off period. If its still possible do you happen to know if that's doable on the app in case she's extremely close and needs to do it today. She's still lives at home with me but isnt here at the moment so cant check. 

eskbanker

gele said:

Thanks eskbanker. Im not quite sure how close it is to cooling off period. If its still possible do you happen to know if that's doable on the app in case she's extremely close and needs to do it today. She's still lives at home with me but isnt here at the moment so cant check. 

Just had a quick look at the product terms, and the cooling off period is actually 30 days after initial deposit, and they also say that the application will be closed if no funding within 28 days, so no rush....

You have up to 28 days from the date of your application request to make your opening deposit. After 28 days the application will be closed.

[...]

5.1 You have the right to cancel your Cash Lifetime ISA within 30 calendar days of us receiving your opening deposit or your transfer completing. To do this you must either call on 0800 052 2222, send us a secure message or write to us freepost at RTEX-LLUT-KKKE, Paragon, PO Box 850, Wallsend NE28 5BJ.