Child saving account access when 25

katiscurious66

Hello, I have been reading about child savings accounts/ISAs etc and they all seem to give the child access when they are 18.
I really want an account that I can put money into but they can't access until they are 25 or older. 

Anyone know if there is such an account or how I can save money for them that they only get when 25?

Thankyou

vacheron

Not without some kind of complicated legal trust. No off the shelf accounts exist for this as far as I know.

I can understand the reasoning. I think the JISA rules on telling a child at 16 that they are getting money at 18 is pretty foolsh. I know what I would do if I had been told this at 16, and what stupid stuff I would probably have spent it on! 

My solution was to open an ISA in my name to give to my child when I feel they are responsible. The new ISA rules will allow you to contribute to multiple ISAs each year, one for you and one set aside for the child.

MEM62

None that I am aware of.  Once someone reaches 18 they are an adult and entitled to make their own decisions as to what they do with their money.  I am sure that you would object to being told what to do with your money and the same applies to them.  However, if you really feel that you do not want them to have access until they are 25 then do not put the money in their name.  Keep it in an account in your name so that the money remains yours.  You can then choose when (and at what age they are) you give it to them.      

onomatopoeia99

In a bank account in their name it's their money and once they are 18 they can access it with no restrictions.

With a trust the relevant case law is Saunders v Vautier which establishes the principle that  at the age of majority (now 18, was 21 when the case was decided) the rights of the beneficiary supercede the wishes of the settlor.  While in the case in question related to East India Company shares held in a trust, as a decision in a senior court it establishes a general principle.  So if the money is in a trust of which they are the sole beneficiary, they'll have access at 18 irrespective of your wishes.

You'll either have to keep the money in your name until you give it as a gift when you decide they are old enough to look after their own money,  or attempt some kind of complex legal instrument to withold it beyond them reaching the age of majority. Keeping the money in your name increases the risk of deliberate deprivation of assets and/or the gift falling within the scope of IHT.

Keep_pedalling

You have two options save in your own name and gift to them once they reach 25 or set up a discretionary trust. The later is probable not really worthwhile due to the amount of admin required and the high level of taxation they are subject too. 

ShinyStarlight1

katiscurious66 said:

Hello, I have been reading about child savings accounts/ISAs etc and they all seem to give the child access when they are 18.
I really want an account that I can put money into but they can't access until they are 25 or older. 

Anyone know if there is such an account or how I can save money for them that they only get when 25?

Thankyou

I was looking for the same but didn’t find one. So I’ve opened a general investment account (ISA is full up) and will add to it at Xmas and on birthdays.

Ill also add a note to my Will saying that that pot is for my grandson.

km1500

you could put it in their name and just before they are 18 switch it to eg a 5 year savings bond which will take it to age 23 or even a 7 year one

MEM62

km1500 said:

you could put it in their name and just before they are 18 switch it to eg a 5 year savings bond which will take it to age 23 or even a 7 year one

Sneaky but inspired  :-)

Albermarle

km1500 said:

you could put it in their name and just before they are 18 switch it to eg a 5 year savings bond which will take it to age 23 or even a 7 year one

There have been a few threads/posts in the past about issues with savings accounts for 17 year old's.
It seems to be a kind of limbo age, between children's accounts and adult accounts, which means your cunning plan may not be as easy as it seems .
Anyway I am no expert, but anyone interested should search the forum for 'savings account for 17 year old ' and quite a few threads pop up. 

mebu60

Are you planning to put in a lump sum, regular payments or both?

You don't say how old the child(ren) is(are) now. Or how much £s we are talking about. 

You could give the child a modest sum in their own name now and see how they deal with it. They may surprise you! 

MX5huggy

Why trust them at 25? have you seen the general level of intelligence amongst 25 year olds these days? 

Put it in a pension for them then they will benefit when they truly know the value of money.