Investing 200k for 18 y o

Looking for suggestions on how to invest an inheritance. Timeline of 7 plus years; the aim is to have funds to put towards property. Planning to take loans for uni and parents (us) will top up the minimum loan. We already have a maturing Junior ISA which is split between Vanguard LS 60, 80 and a global tracker, and wherever it’s invested will be moved into ISAs over the years. Is this kind of approach to funds sensible? Should anything else (S&P tracker?) be included ? Ideally though I’d like a financial adviser involved to give said 18 y o help. Thanks for any thoughts.


  • Linton
    Linton Forumite Posts: 16,590
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    If the money was to be used in 7 years time it would be foolish to put it all into equity (share) investments like the higher VLS's.  In the event of a crash there could be less money available when needed than now.

    If the whole £200K wont be needed in 7 years it may be sensible to split the pot with shorter term money held as cash or cautious investments and the rest held in higher risk funds.

    Moving the money into S&S  ISAs and I guess a LISA would be sensible though it would take at least 10 years to do so.

    For a pot of £200K and no family experienced at handling this sort of money I would agree that using an IFA would be prudent.  Working with a sympathetic IFA could be very educational for the 18 year old.

    However, before talking to the IFA it would be useful to develop a financial plan showing what money would be needed when.  This wont be cast in stone but would give an IFA something to work from and also encourage the 18yo to think through what could be needed in the longer term.

  • xylophone
    xylophone Forumite Posts: 42,587
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    We already have a maturing Junior ISA which is split between Vanguard LS 60, 80 and a global tracker, and wherever it’s invested will be moved into ISAs over the years.

    The young person is just about to turn 18?

    The JISA will automatically convert to an ISA at maturity as here? 

    A Junior ISA will automatically be converted into an adult ISA account when a child reaches 18 years of age. The child will be able to manage the account by registering for online access. 

    If the young person is not happy with the current provider, he/she can approach another provider regarding a transfer in.

    He/she will be able to use part of the inheritance to open a LISA and ISA  for the current year once  he/she turns 18. overall ISA limit is,in the same tax year.

    With regard to the balance of the inheritance, he/she might wish to open fixed rate savings accounts for a year or two?

  • Keep_pedalling
    Keep_pedalling Forumite Posts: 14,742
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    Presumably the will stated that he would not get his inheritance until 25, but if the will did not make this conditional on reaching that age (with an alternate beneficiary if he does not survive that long) or specified that it had to be held in a discretionary trust, then he is actually entitled to claim he is inheritance on his 18th birthday and is responsible for any tax liability arising from his inheritance.
  • Quill68
    Quill68 Forumite Posts: 2
    First Post
    Oh yes Lifetime Isa opens up another possibility. Seems risky in case for any reason property isn’t the end plan. 
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