Kids lump sum - best place for it?

ThePirates

A friend has 2 children aged 12 and 16 who have been left £20k each in a will.
I've been asked where the best long term risk free place is to put them. For the 16yo the Ulster Bank loyalty saver looks good at 5.25%, I'm not sure for the 12yo.
Any on either thoughts appreciated!

xylophone

If these are unconditional bequests  and the only reason that the children may not take control of the money now is that as

minors they cannot "give good receipt", then the bequests "indefeasibly vest" in the children (the money is beneficially theirs

absolutely) and their parent will control it as bare trustee until the children reach age 18 (16 in Scotland).


As Trustee, the parent must manage the money in the best interests and for the benefit of each child.

He might consider opening one of these accounts

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

for each child as a place to pay in the bequests initially.

If they each have a JISA, he could then transfer as much as possible into the JISA for the current tax year.

If not, he could open a JISA for each child and contribute the maximum £9000 for the current tax year.


The best cash JISA currently generally available is from Coventry BS - of course should the children be eligible for the Bath BS version

then this would be better.


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

The JISAs could then be topped up from the Skipton account in the following tax years.