Investment for Minors
Rebecca_Tuck
Member
Hello all,
We have a case where a client's children have each inherited £25,000 from their great aunt via a deed of variation, done by the client's mother. The money is currently held in bank accounts in their own names.
The client would like for the funds to be invested, to be used as a house deposit/college fund in future, but I'm struggling with the logistics and hoping I've just missed something obvious! They can each have a JISA (assuming transfer of CTFs) but after that...
- They can't invest directly in their own names outside of a JISA because they're under 18 (discounted pensions due to time horizon).
- We could look at a bare trust, but who is the settlor? The great-aunt is dead and the children already hold the money.
- Any designated GIAs (or deemed bare trusts) would officially involve the money being passed from the children back to the client.
I'm a little stumped about the best way forward, so any ideas would be very welcome!
Thanks,
Becca
We have a case where a client's children have each inherited £25,000 from their great aunt via a deed of variation, done by the client's mother. The money is currently held in bank accounts in their own names.
The client would like for the funds to be invested, to be used as a house deposit/college fund in future, but I'm struggling with the logistics and hoping I've just missed something obvious! They can each have a JISA (assuming transfer of CTFs) but after that...
- They can't invest directly in their own names outside of a JISA because they're under 18 (discounted pensions due to time horizon).
- We could look at a bare trust, but who is the settlor? The great-aunt is dead and the children already hold the money.
- Any designated GIAs (or deemed bare trusts) would officially involve the money being passed from the children back to the client.
I'm a little stumped about the best way forward, so any ideas would be very welcome!
Thanks,
Becca
Comments
Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern.
However, if DOV was done direct to minors then, in my view, a planning error has occurred and it should have been to a discretionary trust. Such an approach is far more flexible, gives clarity of settlor (for IHT and Settlro for IT/CGT.