£60k Savings for a child!

SevenOfNine

We're trustees (bare trust) for the inheritance for out 2 grandchildren, we've had it for 8 years.

The oldest will be 17 next year & one a/c holding £44k will have to move (it's in a 30 day notice a/c earning 6% only up until the age of 17).

We're less interested in interest rate, just in where we may safely move this money to, most 'children' accounts won't take that much & everything else seems to be 18! 

If we can find somewhere we'll probably put the remaining £16k held elsewhere in as well (it can stay where it is until 18 though), but it would be best (for us) to centralise all his inheritance if possible. His parents can, & will, manage him & the money safely.

TAI if you can suggest some avenues for me to investigate. The only one I can find is Kent's Demelza but it's only £25k.

xylophone

The money in a bare trust  is beneficially owned by the beneficiary and he has the right to access and control at age 18 (16 in Scotland).

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

Takes up to £50,000.

Do the children have JISAs?

As Trustees you have the right to choose to transfer part of the money to JISA if you are content that this is for the benefit of the child beneficiary of the bare trust.. The money in JISA is also beneficially owned by the child.

SevenOfNine

Their dad is filling JISAfor both children from his own inheritance. The link is helpful so I'll investigate that. Thanks

LHW99

Is it not possible to open an adult ISA for children over 16, as well as them having a JISA? If so, that could absorb £20k, in easy access or 1 year fixed, which might make finding a place for the rest easier.

xylophone

LHW99 said:

Is it not possible to open an adult ISA for children over 16, as well as them having a JISA? If so, that could absorb £20k, in easy access or 1 year fixed, which might make finding a place for the rest easier.

Before April 6, 2024, 16 and 17-year-olds could save up to £29,000 a year in ISAs by using both the Junior ISA and adult cash ISA allowances. But now, only those 18 and older can open cash ISAs. This means 16-year-olds can't access adult cash ISAs anymore, closing that loophole.