Old child trust funds: reinvesting and sharing

blackwing

Hi have 3 children aged 16 14 and 9. The older two have child trust funds which I’m in the process of locating. The younger one missed out as she was born too late. 

I’m trying to come up with ways to make this fair and equal for all of them and wondered about dividing the total amount across both trust funds by 3 then reinvesting into junior ISAs for each of them. Is this even possible? 

If not, does anyone have any suggestions how I can even this out so the little one doesn’t miss out?

I’m waiting for the account details from HMRC and will have to find out what the balances are.

sammyjammy

you can't do this, its not your money.  Your youngest child, unless you fund an equal amount out of your own money will have to have an early lesson in legislation changes, sometimes you win sometimes you lose.

xylophone

https://www.gov.uk/junior-individual-savings-accounts


The money in the CTFs belongs to each child absolutely.

Only the child can have access to the money (at the age of 18). The child may however take over control of the account at the age of 16.

It seems that you are the registered contact for each CTF.

Once you have located them and found a JISA provider which accepts transfers, (Coventry BS is one such) you can request the new

provider to arrange the transfer of the CTF to the JISA.

https://www.coventrybuildingsociety.co.uk/member/help/savings/my-quick-guide-to-isas/learn-more-about-junior-isas.html#:~:text=If your child has a Child Trust Fund (CTF),,ll explain how it works.

There is nothing to prevent your opening a JISA for your youngest child now.

You might wish to consider a stocks and shares JISA for the youngest child. A global mixed asset fund might suit.

Fidelity and Hargreaves Lansdown have received favourable mentions on the forum.

https://monevator.com/passive-fund-of-funds-the-rivals/

blackwing

sammyjammy said:

you can't do this, its not your money.  Your youngest child, unless you fund an equal amount out of your own money will have to have an early lesson in legislation changes, sometimes you win sometimes you lose.

I had a feeling this might be the case. It’s a shame really. Thanks.

gravel_2

There's always likely to be a discrepancy in final value of such accounts given the fact they are likely opened at different times with potentially different amounts. The most equitable thing you can do is open a JISA in the name of the 9 year old and, if able, equalise the contributions that have been made. If it's Stocks and Shares the 9 year old has plenty time to benefit from compounding.