Help to invest £5000 for a child!!!!

Purplepumpkin

Ok, so so confused and need help because I am searching everwhere and can't find anything suitable...

My Mum would like to invest £5000 for my son in an account that no one can access except himself when he is 21 years old. She can't take this savings fund or what ever it is out with her being the trustee as she doesn't want the hassle of sorting it all with a lawyer for when anything were to happen to her (She has had a terminal cancer diagnosis:( ), as she doesn't want my sister to know anything about it as she hasn't been around for years and had no contact with her until recently when my Mum recieved a lump sum after the death of my Step-dad.

So, basically the account would have to be opened with me as the trustee, but with no withdrawal access just the means of adding more if I wanted and could do.

I looked into Child Trust Funds but you can only add up to £1200 per year, and my Mum wants to put in £5000, there is a strong possibility she wouldn't be here for the time taken to add £1200 per year to give him the amount she does. Also, she trusts me to deal with it, but after what my Sister has been up to lately, I would really like to be able to show her the paperwork so she has piece of mind that I wouldn't access the money, but it would go to my son when he is 21.

Im also finding it difficult to find anything with the term on it of being 21 years of age, they all seem to be 18 and my Mum really wants to have it at 21 as she knows he would be a bit more mature by then.

I would really like to be able to sort this out for her as she is trying to get a lot of things done before its too late for her, and has already gifted me more money than that which I set up savings for myself and my sons future with. She really wants to do this extra though.

I am really not getting anywhere finding her anything suitable so far....please help if you have any suggestions.....

Many thanks

EDIT - Forgot to add, my son is 6 years old, will be 7 in September 2008.

Lokolo

If she really does trust you why not just open a high interest savings account in your name and then you can transfer money accross when they are old enough?

Purplepumpkin

Lokolo wrote: »

If she really does trust you why not just open a high interest savings account in your name and then you can transfer money accross when they are old enough?

Because.....as I said in the original post...my Mum has been given a Terminal Diagnosis due to cancer, and I feel it would be nice for her to see the money has been put in exactly what she would like, she won't be here to see him grow up and get the money, the least I can do is ensure she has peace of mind that it will only be used for what she wants it to be used for.

dunstonh

unit trust or investment trust is the usual investment option for those wishing to invest for children but retain control of the investment themselves until it it transferred over.

Lorne

Removed as not product related

Purplepumpkin

Looking for suggestions of products available that meet what My MUM whats to do with the money as outlined in the first post please....

Thanks

Selina

Lorne

I'm sorry if I was not giving you information that was helpful on products, just wanted to give you some of my experience. Apologies

Primrose

My husband recently had to act as Trustee for some children under a Will legacy and the only outlet he could easily track down where money could be held in trust until the age of 21 (as specified by the Will) rather than the age of 18, was a Post Office Savings Account. This is probably not the best financial deal in the world interest-wise, but if you want to go ahead with this you should be able to get the forms from the Post Office. You will need to be able to produce your son's birth certificate and it should take about three weeks to set up. Make sure you get a form (can't remember what number it is - R85 ?? so that tax is not deducted if your son is not a taxpayer.

benood

Could she make him a specific legacy in her will with the requirement for the executors to hold the money for him until he's 21? Doing this would have no chance to reduce inheiritance tax if she is likely to have a liability however.

dunstonh

Purplepumpkin wrote: »

Looking for suggestions of products available that meet what My MUM whats to do with the money as outlined in the first post please....

Thanks

Selina

unit trusts and investment trusts. As already mentioned.