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What to do when 1 child has trust fund other doesnt?

(23 Posts)
midastouch Thu 10-Jan-13 15:54:25

My 1st ds was born in 2009 so was eligible for a trust fund and because we have low income he has £500 in a shares account. My dd was born 2012 so she obviously didnt get one, ive opened her a cash junior isa and a shares one with family investments, shes 9 months old and all ive managed to save is £20 this seems hopeless the poor child isnt going to have a lump sum like her brother it seems so unfair, im not really sure what to do thesaving just doesnt seem to be working out too well. Anyone else had this problem?

JingleMum Thu 10-Jan-13 16:02:58

Split it. Just tell your children that the trust fund is for both of them, that's what I'll be doing if I have another child.

blackteaplease Thu 10-Jan-13 16:07:37

You can't split it. It is only accessible to the older dc and is theirs to spend when they reach 18. You can ask them to share it but can't force them.

Op, not sure what to do about uneven savings. We are in the same situation. Keep saving though, even little amounts will add up over 18 years.

decktheballs Thu 10-Jan-13 16:09:45

I have 3 dc, dd got the extra £500 due to my low income and a £250 top up at 7. Ds1 got the standard £500 and no top ups and ds2 (born in 2010) got £50.
I'm hoping to even it out on the future but it does seem unfair.

My eldest doesn't have one. The middle child got £250 and the youngest got £500. Although they were both shares and the middle dc didn't lose much when they crashed and the youngest did ...

I worked out I needed to save £7 a month from when the youngest was born so that they all get the same amount on their 18th. Roughly.

£30 a year should do it for your dd, shouldn't it? A bit more cos your ds's money is earning interest on the whole 500 the whole time and your dd's won't be. £1 a week? (maths failing at this point)

JingleMum Thu 10-Jan-13 16:14:50

Didn't know you couldn't split it! Better hope eldest is generous. Since they scrapped it, it's a shame nothing could be put in place to ensure it got distributed equally amongst siblings.

midastouch Thu 10-Jan-13 16:16:32

I do completly understand why they stopped the trust funds, it just seems unfair that some children wont get what there brothers or sisters will get.

noisytoys Thu 10-Jan-13 16:17:04

DD1 has £500, DD2 has nothing. In 18 years though we will hopefully be in a position to match the trust funds so they are equal

JingleMum, the thing is, that the trust fund belongs to the child. It is their money on their 18th birthday, and if they want to go out and blow it all on an awesome wild night out, they can.

Whereas my poor youngest dc has a savings isa in my name that I'll give him to use on sensible things grin.

JingleMum Thu 10-Jan-13 20:48:33

I don't bother adding to the trust fund, I have a separate account that I'm responsible for until my DD is 21. I may lie and tell DD that trust fund legally has to be used for driving lessons or something! DD's trust fund is in shares to do with a schoolteacher's association, whatever that means?

CogitoErgoSometimes Fri 11-Jan-13 11:19:21

My DS was born in 2000... before the Trust Fund started.... so he didn't get qualify either. It's not 'unfair' exactly, just bad timing. I started an investment fund for him back then into which I put £20/month to begin with. Why not open a savings account and use it to put any bits and pieces of cash she receives from you, friends or grandparents? Over an 18 year period, if you put away just £30/year, you'll match your eldest DC's £500.

SuzysZoo Fri 11-Jan-13 13:54:53

I never liked the trust funds anyway. The rate is rubbish. Some of my wealthier friends save up to the max in them. That means their child will access £20k when they are 18 and the parent has no control. What if they are a drug addict or have a "friend" who wants to help them spend it? Or they want to buy a motorbike? Better to keep your money and give it to them when you can tell if they are sensible or not, IMO!

CogitoErgoSometimes Sat 12-Jan-13 10:24:21

I take the view that, between birth and age 18, I have a good long time to impress upon DS that the money, when it is finally handed over, is intended for something constructive. We already have conversations from time to time on savings, budgets and interest rates (we love shouting "4000% APR!!?! Daylight robbery!!" at payday lender ads on TV) He's just 12 at the moment and, whilst I can't guarantee that he isn't going to become a drug-addled hell-raiser with irresponsible friends by age 18, I'm erring well on the side of optimism. smile

Maryz Cote D'Ivoire Sat 12-Jan-13 10:51:16

It's £500. By the time they get it, it will be drinking money for their first term in university!

When you said trust fund, I was thinking £500,000 from grandparents or something significant.

By the time your children are 18, your situation may be entirely different, so worry about it then.

DoItToJulia Sat 12-Jan-13 11:03:47

I was wondering about this. Ds1 was born in 2005 and got £250' but ds2' born 2012' nothing. I was gong to put £250 in a similar account and add to it as we do for ds1.....

Will watch with interest.

emlou83 Sat 12-Jan-13 13:22:34

isnt the trust fund only for university fees and the likes?

mrscog Sat 12-Jan-13 13:29:40

I think you should try and save what you can to balance it, but it's not your fault and it will be a good life lesson to your DC about how life isn't always fair and sometimes it's no one's fault. You could also encourage your DC1 to share the money, which again is another excellent lesson.

NaturalBaby Sat 12-Jan-13 14:24:19

We opened a savings account for our youngest and are trying to keep the amounts fairly balanced so there's the same amount in each. When ds1 is 18 we'll have a final total and will make sure the other dc's have the same amount in their accounts.

You've got a long time to save up a bit more to put into the savings account so just put more into your dd's account for now when you can.

CogitoErgoSometimes Sat 12-Jan-13 14:51:47

@emlou83 it's start-up money. Depending on how much it is and who gets it it might go towards a uni career, first car, first flat .. whatever they want to do with it age 18. The only difference between the trust fund concept and the old fashioned post office savings account people used to open for their kids is that Mum and Dad can't steal access the cash in an emergencysmile

financialwizard Sat 12-Jan-13 16:09:15

I have 1 dc born 2001 that had some savings in an account at the bank that won't match his sister born 2010 who got £250. So we have set up a savings bond for him which we pay into so that when they both hit 21 they get a pay out.

MrsBungleBear Sat 12-Jan-13 16:14:27

My DD born in 2009 got £250 and we opened a trust fund then paid £20 a month into it.

DS was born in 2012 and I opened a shares fund thing with the same company and paid in £250 then set up the £20 a month.

No idea if they will have the same amounts at 18 as they have different shares accounts - one might have loads and the other hardly any.

I shall just try and balance it at the time.

midastouch Sun 13-Jan-13 15:20:28

Maryz hopefully it will be more than £500 when he gets it and he will have more sence that to use it as drink money!!! I hope we are in a better position by the time they're 18 but presuming things stay as they are although £500 may not seem a lot to some people it could be a chunk towards a car or drivinng lessons i'd hate to think my dd wouldnt have that same start.

lockets Sun 13-Jan-13 15:37:43

Message withdrawn at poster's request.

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