JISA Yearly Cap

Gee_sender79

Hi, was wondering what happens if I have more than the £9k cap of new money for opening a JISA for each of my kids?
In short, when my dad passed the sale of the house will be split between myself and my siblings with a % going to the grandchildren. This will be over £9k for both my kids. I believe the solicitors (also who is selling house) will not release funds as they’re under 18 unless it’s to an account they can’t touch until they’re 18. Are there any alternatives? I’ve read, or maybe misread that banks would put excess in a savings trust fund?? How does that affect tax though.
Thanks

ForumUser7

Gee_sender79 said:

Hi, was wondering what happens if I have more than the £9k cap of new money for opening a JISA for each of my kids?
In short, when my dad passed the sale of the house will be split between myself and my siblings with a % going to the grandchildren. This will be over £9k for both my kids. I believe the solicitors (also who is selling house) will not release funds as they’re under 18 unless it’s to an account they can’t touch until they’re 18. Are there any alternatives? I’ve read, or maybe misread that banks would put excess in a savings trust fund?? How does that affect tax though.
Thanks

Sorry to hear of your dad's passing. How old are your kids? While trust may be an option, if for example they were 16 would the solicitor agree to putting it in a 2 year fixed rate bond (with no withdrawals/early closure even with penalty etc.)? There are options for kids as well as adults, but there isn't much point in me linking to the relevant accounts yet as one of the filters I can input to make the options more relevant is the age. Don't put more than the cap in the JISA - other's will give you more info on this, but HMRC will find out. Not sure what they do though, but it won't be a great outcome.

Kim_13

Could the solicitors release 9K to a JISA per child in this tax year and the remainder in the next?

Most child accounts are the child’s to control at 16, which would also rule out premium bonds. If the will stated 18 and the solicitor is named as the executor that would explain why they can’t be flexible, as they would open themselves up to liability for not doing as your dad had stated.

I’m not knowledgeable on trusts but as the money is a grandparental gift and not a parental one, there should be no tax liability (as the child has their own personal allowance to use in this case.)

xylophone

Your children are under 18 and (it seems) have legacies from their grandparent's will.

Assuming that these are absolute and unconditional, they will "irrevocably vest" in the children.

The children are too young to give good receipt for the legacies and therefore they will need to be held in trust for them.

Presumably you (as their parent) will be the Trustee.

Assuming that the amount per child is not over £50,000, you could consider opening a Child Trust Saver for each child with

Skipton Building Society.

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

You would then be able to open a JISA for each child (the best cash JISA currently  generally available is from Coventry BS but you

might also consider a stocks and shares JISA if the children are still very young) and  then move money from the Trust to the child's JISA

each year.