13 year old's inheritance

Jabei1

Hi all

There is plenty about children getting an inheritance but I'm just after some guidance on a question that I'm struggling with.

My 13 year old son has inherited £30K with a wish in the will that it be invested for him. No other detail so I have the money in my name. I plan to open a JISA but the question is am I best just putting £9K in for this year and the remainder in a high interest account until next year when I can put another £9K? The alternative I was thinking about was premium bonds but I've heard Martin's podcast this week suggesting PB's are not a good idea.

I'm just after some real world experiences that people may have from being in the same boat.

Thanks

eskbanker

…a wish in the will that it be invested for him…

Are you able to share the exact wording used, and in particular if there is any timescale specified, e.g. until he reaches adulthood or a specific age?

The distinction between saving and investing is often highlighted on here, and timeframes are an important factor in choosing what's appropriate…

Keep_pedalling

If he has been left the money absolutely he will have full control of the money from his 18th birthday and in the meantime needs to be held in a bare trust until then (not in your name). A JISA is suitable for smaller sums but you are going to have to find somewhere that offers trust accounts for the bulk of this.

Jabei1

https://forums.moneysavingexpert.com/discussion/comment/82159166#Comment_82159166

there is no detail at all other than the sum and that it is "for" him. Nothing about timescale or possible use.

xylophone

It appears that your son has been left an absolute and unconditional gift.

If so, the money belongs to him absolutely but as a minor, he cannot give good receipt for the gift.

You will hold the money for him in bare trust. He has the right to access and control at the age of 18.

Examples https://www.suffolkbuildingsociety.co.uk/savings-products/family-tree-trust-saving-for-children-under-18-years-2/

https://www.familybuildingsociety.co.uk/savings/childrens-savings

Junior Saver (2)

It could be possible to open a JISA now with a full subscription, hold the balance in a trust account and transfer into JISA in subsequent years.

wmb194

https://forums.moneysavingexpert.com/discussion/6685692/13-year-olds-inheritance

AJ Bell offers a bare trust stockbroking account for children.

https://www.ajbell.co.uk/dealing-account/children

kermchem

In the current tax environment be careful about holding “investments” outside a JISA, as when he turns 18 and can (should) manage the investments for himself he will be paying CGT to get it out of the bare trust investment account and into an adult ISA. CGT threshold could easily be exceeded.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82160038#Comment_82160038

It shouldn't be a massive issue if you manage that annually with the usual CGT allowance.