13 Year old inheritance

MUNNYBUN24

Hello! I just wondered if anyone could help. My 13 year old is about to inherit around £38,000 from overseas. However I am having trouble finding an account for her. She is oblivious to this inheritance and until she’s an adult I’d like to keep it that way! All the banks I have spoken to wouldn’t be able to keep the funds anonymously past her 16th birthday. As I understand I can place some into her ISA….i have two other children and don’t want everyone finding out about the money at this stage. I’m also not keen for this money to sit in my account from a tax perspective. My 13 year old was very ill as a younger child and I want the money to ensure a long and healthy life for her and not for it to be squandered or whittled away. Any advice would be greatly appreciated. 

xylophone

Had you considered an account in  Trust (to age 18), with Skipton Building Society?

https://www.skipton.co.uk/savings/childrens/childrens-trust-saver#:~:text=Until the child turns 18,child will be the beneficiary.

This would be available for the initial deposit - you could then move money out of the account each tax year into a Junior ISA for your child.

The best rate generally available on a JISA is from Coventry Building Society.

https://www.moneysavingexpert.com/savings/junior-isa/

But it would be possible for your child to manage the JISA from age 16 (but not to access the money therein until age 18).

elsien

MUNNYBUN24 said:

Hello! I just wondered if anyone could help. My 13 year old is about to inherit around £38,000 from overseas. However I am having trouble finding an account for her. She is oblivious to this inheritance and until she’s an adult I’d like to keep it that way! All the banks I have spoken to wouldn’t be able to keep the funds anonymously past her 16th birthday. As I understand I can place some into her ISA….i have two other children and don’t want everyone finding out about the money at this stage. I’m also not keen for this money to sit in my account from a tax perspective. My 13 year old was very ill as a younger child and I want the money to ensure a long and healthy life for her and not for it to be squandered or whittled away. Any advice would be greatly appreciated. 

Completely get that, but the reality is when she’s 18 it’s her money to do what she wants with regardless of your views.
Would it not be better closer to the time to make her aware of it and start to have those discussions rather than an unexpected windfall on her 18th birthday when she then may be more likely to say “sod it” and go on a spree? 

Albermarle

In reality it is legally her inheritance and so it should go into an account in her name. That means she will get access at 16 or 18.

My 13 year old was very ill as a younger child and I want the money to ensure a long and healthy life for her and not for it to be squandered or whittled away. 

You could just as easily argue that having been ill as a younger child, it would maybe be nice to see her spread her wings at 18, and blow some of it on a gap year, car, parties, unsuitable boyfriends etc . Although parents are always nervous about this, it is a natural part of growing up . YOLO as they say.

Keep_pedalling

Although understandable you have no right to hide this from her. It needs to be kept in trust until her 18th birthday (16 in Scotland) at which point she will be free to do as she wishes with it. 

tacpot12

Based on what you have said, I tend to agree with you that you should not discuss this with any of your children yet, but get this money into a Trust Account, such as the one with Skipton Building Society. Interest Rates are good at the moment, and your 13 year old will be entitled to the money in 5 years time, so there is no point in investing it yet. 

It's not clear why your other two children aren't inheriting anything, how you feel about this, or how your 13 year old might feel about this. If your other children have a prospect of inheriting something at a later date, this might change how you and your 13 year old feel about this, but if they don't have any prospect, then I think you need to tell them about the money as soon as you tell your now 13 year old. This is a difficult position that the person leaving the money has put you in, and you are to a large extent in the hands of your children as to how this plays out in future. 

The only way to stop your child frittering the money way is to involve them as soon as you can in deciding how to manage the money, and to impress on them the fact that such inheritances can be quite rare, and it would be very easy to fritter it away and not get the benefit that the person leaving them the money hoped.

I would imagine that you should tell then about this when they are 15 or 16 years old; no later. You can can ask your child that has received this inheritance that if they feel there is anything unfair about the fact that they have this money and your other chilren do not, but you should avoid expecting them to make any decision that they don't want to. They will not be mature at 15 or 16, but they will have an opinion and you have to abide by it because the money is theirs. 

MUNNYBUN24

Thanks everyone. Some food for thought. I def won’t be having any discussions for a couple of years. In some ways it’s a great thing to inherit but in other ways not…how she’s treated by friends and boyfriends etc in the future.  I would certainly like her siblings to have a better handle on how this came about. Hopefully if they are older and more mature they may have more understanding. I totally understand it’s her money and I can only guide from the sidelines. I was more looking for advise in terms of where to put the money. When I made enquires the  only bank who would take it in full were Lloyds and they gave her access at 16 which is too young in my opinion. 

wmb194

MUNNYBUN24 said:

Hello! I just wondered if anyone could help. My 13 year old is about to inherit around £38,000 from overseas. However I am having trouble finding an account for her. She is oblivious to this inheritance and until she’s an adult I’d like to keep it that way! All the banks I have spoken to wouldn’t be able to keep the funds anonymously past her 16th birthday. As I understand I can place some into her ISA….i have two other children and don’t want everyone finding out about the money at this stage. I’m also not keen for this money to sit in my account from a tax perspective. My 13 year old was very ill as a younger child and I want the money to ensure a long and healthy life for her and not for it to be squandered or whittled away. Any advice would be greatly appreciated. 

Does that include Barclays? Assuming you're not in Scotland Barclays children's savings accounts run to 18.

Albermarle

Reading this might help
Top children's savings accounts: 5.8% interest (moneysavingexpert.com)

MUNNYBUN24

I haven’t tried Barclays…although they aren’t one of my favourites 😂 It’s been so complex and hard to sort through the whole process. I was just stunned the handful I tried didn’t want the money! Skipton looks good at a glance but if it doesn’t work out I’ll look into Barclays. 

tetrarch

In my view you have a five year window which is your opportunity to educate your 13-year-old sufficiently in order for her to then make the wisest decision at 18

I would keep it secret until that time. There is no need for a teenager to have money worries in either direction

Regards

Tet