Child inheritance

WirralStewy

Hi my son is about to inherit a sizable sum of money he is 14yo

Where is best to invest this money ? looking around most offer decent interest but only upto the first £5000, then the rate drops.

Can put it all into a Junior ISA as that's limited to £9k per year, just looking for options to save/invest until he is 18yo

elsien

I think it might help if you give an indication of what sizeable means? 

root

WirralStewy said:

Can put it all into a Junior ISA as that's limited to £9k per year, just looking for options to save/invest until he is 18yo

Only thing that put me off a JISA for mine was junior gets hold of the money at 18. So I just keep their money in our ISA shelters.

If I got hold of a chunk of change like that when I was 18 it would have been most likely completely wasted.

elsien

root said:

WirralStewy said:

Can put it all into a Junior ISA as that's limited to £9k per year, just looking for options to save/invest until he is 18yo

Only thing that put me off a JISA for mine was junior gets hold of the money at 18. So I just keep their money in our ISA shelters.

If I got hold of a chunk of change like that when I was 18 it would have been most likely completely wasted.

If they want to access it when they’re 18 they have every right to do so regardless of where it has been  kept in the interim. 

One person’s waste is another person’s living their best life. 

root

elsien said:

root said:

WirralStewy said:

Can put it all into a Junior ISA as that's limited to £9k per year, just looking for options to save/invest until he is 18yo

Only thing that put me off a JISA for mine was junior gets hold of the money at 18. So I just keep their money in our ISA shelters.

If I got hold of a chunk of change like that when I was 18 it would have been most likely completely wasted.

If they want to access it when they’re 18 they have every right to do so regardless of where it has been  kept in the interim. 

One person’s waste is another person’s living their best life. 

Absolutely right, I'm not saying anyone is right or wrong. Just pointing out something that is sometimes overlooked.

And as I said above - if I (as in me) got a big chunk of money when I was 18 it would likely have been wasted.

TheMilkmansDad

It all depends on what the youngster has been taught about money and how much the understand.

We've been open with our kids (currently 10 & 12) about their money and how much they have in savings. They think about what they wan to spend the money on before they spend it - be it a bag of sweets or a new game.

I'd rather them have that responsibility now when they have limited access so they can "learn" about the benefits of saving/spending; rather than keep the money secret and they get access at 18 and have no "education" on what they want to do with it.

Guess we'll find out in 8 & 6 years time! 

As to the OP's question - as they are 14 then a JISA would probably be best place to start, maybe premium bonds as well. All depends on the sum.

xylophone

If this money has been left to your son absolutely and unconditionally, then he is the beneficial owner and you will hold it in bare trust for him until he reaches the age of 18.

You may choose to pay £9000 into a JISA in this and subsequent tax years up to his 18th birthday.

https://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-children-s-accounts.html

You might choose to hold the balance of the money in an account like this one

https://www.skipton.co.uk/savings/childrens/childrens-trust-saver

or

https://www.leedsbuildingsociety.co.uk/savings/childrens-savings-accounts/vault/

Albermarle

Can put it all into a Junior ISA as that's limited to £9k per year, just looking for options to save/invest until he is 18yo

Saving and Investing are not normally understood as the same thing.

Saving = safe savings accounts paying interest

Investing = risk based investments, like stocks and shares

Investing is better long term, and 4 years is not really long enough.

Albermarle

And as I said above - if I (as in me) got a big chunk of money when I was 18 it would likely have been wasted

As George Best said ' I spent a lot of my money on Booze, Birds and Fast Cars, the rest I just squandered'