investing a lump sum for a child

ellensj

My five year old son has inherited his father's lump sum pension payment from the Norwich Union, amounting to just under £10,000. The company states that it may only be released into a bank account in his name. If I open a bank account for him, could I then withdraw it and invest the money on his behalf? It strikes me that there are ways of making this money work harder for him ( I dont intend to access it till he is 18 - preferably older)

So, two questions really

What would be the most effective way of investing this money for him?

Am I legally able to do this when the Norwich Union will only release the money into a bank account?

Many thanks

Ellen SJ

dunstonh

What would be the most effective way of investing this money for him?

Typically investment trusts or unit trusts.

Am I legally able to do this when the Norwich Union will only release the money into a bank account?

Yes. You have a legal liability to make sure the investments are in the beneficiaries best interests. Sometimes that can mean being seen to be doing the right thing as much as actually doing the right thing. You dont want to end up being sued for not acting in best interests (majority of cases that never happens but the way people are encouraged to take action nowadays as well as families falling out....)