Put money away till the children's 21

k2004

Hi I've got two granddaughters living with me their mum passed away and left insurance roundabout 70,000 pounds each they are 15 and 16 year old what can I do put this money away and be safe till they reach 21 make a bit interest and released it till the 21 year old any advice would be appreciated thank you

trickydicky14

This question comes up on a regular basis, I'm no expert but I think you will find if the money is in the name of the children then they will have access to the money at 18 not 21 and I don't think you can get round that.

wmb194

k2004 said:

Hi I've got two granddaughters living with me their mum passed away and left insurance roundabout 70,000 pounds each they are 15 and 16 year old what can I do put this money away and be safe till they reach 21 make a bit interest and released it till the 21 year old any advice would be appreciated thank you

Where's the money now? In accounts in their names with you as the trustee? On what grounds can you keep it from them until they're 21? If there are no correctly written stipulations e.g., in a will it'll normally become theirs at 18 (16 in Scotland).

Keep_pedalling

Assuming the children were the beneficiaries of the insurance policies, then the money needs to be held in trust until they are 18. Finding intestacy baring trust accounts is tricky. I know that NS&I accounts can be used as trust accounts. You will need one for each child. 

mta999

no.idea on the legalities or practicalities  of it but could you put it onto a 5 year bond in their names ?


https://www.moneysupermarket.com/savings/5-year-fixed-rate-bonds/

poseidon1

mta999 said:

no.idea on the legalities or practicalities  of it but could you put it onto a 5 year bond in their names ?


https://www.moneysupermarket.com/savings/5-year-fixed-rate-bonds/

My thoughts as well.

xylophone

It appears that the beneficial owners of the money are the children.

You may find that the providers of the five year bonds will not permit you to hold the money in bare trust for the children and will not permit an under 18 to open such an account.

Do the children have JISAs?

 If not, the 16 year old can open a JISA for herself and (assuming that you are the legal guardian), you can open one for the 15 year old.

Up to £9000 per tax year can be contributed to these accounts.

You might then  consider contributing £50,000 per child to 

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

Then perhaps consider this

https://www.bucksbs.co.uk/savings/trusts/trust-instant-access/

transferring £9000 per child to JISA 6/4/26 and the balance subsequently.

k2004

Very complicated I know when I was 16 to 18 and I had 70,000 pound just say I have nothing left by 21

artyboy

k2004 said:

Very complicated I know when I was 16 to 18 and I had 70,000 pound just say I have nothing left by 21

In that case, providing them with some good financial education now is the best option... because you're unlikely to have any legal way to withhold iit from them when they turn 18.

k2004

I've have two grandchildren their mother passed away and the local authority has  parental responsibility their mother left an insurance policy of £140.000.I'm a kinship here for them the money is with the solicitors at the minute they have been no help because there be getting the interest. children are 15 and 16 I would like to put this money away and kept safe for their future 21 trust anybody can help thank

Keep_pedalling

You need to put £70k in a separate bare trust for each child but they will be entitled to full access to that money once they reach 18, you can’t hold it back from them the best you can do is guide them on how to handle it from that point.

Because both will reach 18 within 3 years this these need to go into cash accounts rather than investment accounts.