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10k to invest/save for a child until 21
Interested_Taxpayer
Posts: 116 Forumite
Hi all
I would very much welcome some advice on where I should invest/save a child's £10k inheritance untll she reached 21. She is currently 10 and I am the executor of the will. I want to be safe with this so I don't think the markets are the best place at this time.
Grateful for your views.
I would very much welcome some advice on where I should invest/save a child's £10k inheritance untll she reached 21. She is currently 10 and I am the executor of the will. I want to be safe with this so I don't think the markets are the best place at this time.
Grateful for your views.
0
Comments
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I want to be safe with this so I don't think the markets are the best place at this time.
You are executor of the will. Who is going to be trustee for the money as it is their decision, not yours (unless you are doing both).
Unit trusts or investment trusts are the typical option here. You also need to be aware that the trustee making the investment decision can be sued for bad decision making so it is important to make the right decision and avoiding use of the stockmarket for an 11 year timescale for some of the money may be considered a bad move. With these things you often have to be seen to be doing the right thing and make sure decisions are document. Whilst the odds of being sued are very low, it does happen.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks dunstonh. Yes I am indeed both and I did suspect that I could be sued if I get it badly wrong. Should I get in touch with a local IFA to discuss the options or set up the trusts myself?0
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If you feel you are capable of making the investment decisions reasonably then you can do it yourself. If you feel a written report and having the investment decisions (and liability) taken by an IFA is better then go with that option.
You have to be careful not to impose your personal risk profile on to the investment. You are talking about 11 years here. A fund supermarket based unit trust with the childs name as designation will do the job nicely and allow the £10k to be invested with a spread of areas, some of which can include stockmarket, some of which can include high yield bonds, gilts etc. You can have the one home with a wide spread and that is better than trying to pick 100% into any one area.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Great advice. I feel the IFA route is perhaps best.
Thanks again.0
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