JISA after 18

LarryR

Hi

I've been saving into an S&S JISA (originally a CTF) for the last 18 years or so in Charles Stanley Direct, and then a few weeks ago the account disappeared from my app. Of course, he had turned 18. Trouble is I wasn't going to give him the account until he turned 21. So I rang CS but they explained the account was now legally his and that it would just sit with them (paying charges) until he called up and gave them his details so he could administer it. I'm not allowed to see it, access it, get the balance or even pay into it (which I would like to do).

I realise this is my fault and was probably obvious that I should have prepared better for this. Is there anything I can do or is it really just a case of either hand it over to him now or leave it to (hopefully) accumulate, or (more likely) decrease from charges?

Thanks 

Newly_retired

You've had the response from CS. That's correct. You need a conversation with your son, explaining where the money has come from, and what he now needs to do. Hopefully he has learned some financial common sense and will understand that this is money you have saved to give him choices for his future, not just to waste. No guarantees!

xylophone

The assets in the CTF/JISA have always belonged to your son and not to you.

https://www.charles-stanley.co.uk/services/save/junior-isa

Money and investments held in a Junior ISA belong to the child. Therefore, only your child can access the money. and only when they are 18. At this time the JISA automatically converts into our flexible ISA.

saajan_12

LarryR said:

Hi

I've been saving into an S&S JISA (originally a CTF) for the last 18 years or so in Charles Stanley Direct, and then a few weeks ago the account disappeared from my app. Of course, he had turned 18. Trouble is I wasn't going to give him the account until he turned 21. So I rang CS but they explained the account was now legally his and that it would just sit with them (paying charges) until he called up and gave them his details so he could administer it. I'm not allowed to see it, access it, get the balance or even pay into it (which I would like to do).

I realise this is my fault and was probably obvious that I should have prepared better for this. Is there anything I can do or is it really just a case of either hand it over to him now or leave it to (hopefully) accumulate, or (more likely) decrease from charges?

Thanks 

You already gave it to him. If you wanted to save up money to give him a lump sum at 21, that should have stayed in your name (with the tax implications that entails) and then gifted when you were happy. Or put into a trust, with the setup costs that entails. But you can't just have both ie the tax efficiencies as if its theirs but the control as if its yours. 

When the child is under 18, you can manage it on their behalf, but that has to be in their best interest, which isn't necessarily transfer it all back to you just before 18 to manage. 

cantbelieveit23

What if your conversation includes a suggestion that you will continue to contribute to some kind of savings (ISA?) for him if he does not touch the money from the JISA until he turns 21?  You could explain your original intention, and why you thought 21 was the best age for him.    By the way, why 21?  Many choose 18 as it could help with Uni expenses etc.