AIBU to avoid junior ISAs because children get access at 18?

[flipfloplaugh]

I was about to start a junior ISA for my kids when I realised they would get the money no strings attached at 18. That's insane!! They're small at the moment, and I have no idea what they will be like at 18... I would have probably wasted a bit of it at 18, but several of my friends would have blown it all almost instantly on absolute nonsense. The v few people I know who have trust funds have trustees to stop daft usage and don't get the money until at least 25 and possibly later. Why on earth would I save money now to have it potentially wasted by some dingbat 18 year old??

There's a difference between not thinking the law applies and actually just not caring about the law.

If my kids want to report me for financial abuse then I'll have seriously fucked up as a parent and probably deserve the book throwing at me.

Ha the irony! This thread is full of received wisdom that an 18 year old is reckless, yet the first comment about an older generation gets -ism'ed!

Yes, there but that doesn't make it right. Dishonestly keeping their entitlement from them is not legal or moral, never mind how much you might think you are protecting their interests. That sort of thing is a step down a path of other controlling behaviours.

What next, hiding their polling card because you think they'll vote irresponsibly? Hiding their job offer because you think its wrong for them?

Depends on your POV @Everanewbie.

Some 18 year olds are reckless. Some are not. Those are facts. And both sides have been presented on this thread.

Saying that at 50 the ‘best years are behind you’ is subjective bollocks!!

DS knew that the money we'd saved for him was for a house deposit. This was drummed into him all through childhood. At 18 it never entered his head that it would or could be used for anything else. If I'd thought he'd be completely reckless then I'd have made sure he couldn't access it without a second thought - but if he took me to court for fraud at 18 I'd be so impressed by his proactive nous that I'd hand it over to him anyway.

I'm 50 and my best years definitely aren't behind me. Spent a few weeks in Central America just last month to celebrate. Planning a huge round the world trip for my 60th.

Surely reckless 18 year olds is a subjective opinion too?

A 50 year old is objectively past their peak physically and mentally and is far more likely to be suffering with chronic medical conditions, and therefore the statement "best days are behind them" is fairly applied.

Why do you think the reckless 18 year old is objective reality not just anecdotal received wisdom while the best days being behind you is purely subjective?

I've known women in their 60s be slimmer and fitter, living life to the full. Likewise I've known some very clued up and sensible 18 year olds.

On the other hand, compound interest means that an early start on a pension is a huge advantage. Possible early retirement would be a remarkable, life-enhancing gift.

My mum actually did hide a job offer from me.

she thought I should go to uni. I’d already taken a year out and she thought if I don’t go I’d “get used to having money” and never go back.

so she didn’t tell me. I went to uni. Not the right path for me and I so wish she’d told me.

i would have gone to uni eventually but to do a different degree- I eventually figured out what I wanted to do in my late 20s after a few years out in the world. Only by then I couldn’t afford another 3 years loss of wages and all the fees. Plus the job was abroad so I would have learned another language.

i am sure she still thinks she did the right thing or I’d have wasted my life not going to uni.

Pensions can't be accessed until age 55 - due to go up to 57. It is still a kindness, don't get me wrong. And I love a bit of pension planning. But in my work I see far more examples of a leg up benefiting people in their early 20s through to mid 40s. It's still nice at 57, but could be put to much better use buying a house/car/education.

@Everanewbie you are making my point for me…. SOME people past 50 have their best days behind them. SOME people do not.

It was you who said my post was ironic as the thread was full of people saying 18 year olds are reckless.

And my counter was that actually the thread was making the case that some are.. and some are not.

In both cases, that’s not subjective.. that’s an objective fact.

So why can’t you see that saying all 18 year olds are reckless is not ok… but saying all over 50 year olds are past their best is?

That’s what is ageist.

No. It is you that is getting the wrong end of the stick. My comment here was on the cry of agism when someone stated that over 50s had their best days being behind them, I think it was odd how we've had pages and pages of hearing how daft 18 year olds are without anyone mentioning agism. But the first time someone says something disparaging about an older person, we must call it out.

I would also argue that generally speaking, a post 50 decline is a biological reality, whereas late adolescence recklessness is a perception.

But in any case, nodding along to questioning the competence of one set of adults, then screaming agism when someone questions the abilities of another is inconsistent.

It really isn’t but derailing the thread so leaving it there @Everanewbie

Honestly, sometimes you have to let people make their own mistakes. But not with my money, that I have worked hard to save for them.

I've stopped putting money in to the JISA now because of the access at 18 issue and instead save differently for them, one where I have (legal) control over it for as long as I deem fit.

But it’s not your money if it’s in a junior ISA.

I should never have put it in there. I don't agree it's not money. I earned it. I put it in there.

You’d be surprised at what people do when there’s money involved.

just look at all the fights over inheritance.

if there’s a significant sum at stake and your child finds out you’ve been intercepting mail and deliberately keeping him from his own money, do not be surprised if there are consequences.

i still don’t get why you’d save large amounts and put it in their names, if you don’t want them to have it?

just keep it in your own name, then you can hand it over when you want.

seems mad to me, to save for a child then actually breaking the law to keep them from it.

Why did you put it in there then?

if it’s your money, why give it away if you don’t want to?

I feel the same. They do have a certain amount in JISA and I accept that they will have control at 18 and I have no reason to think they won’t be sensible. But I stopped topping up a few years ago and instead am investing in a GIA in my name and it’s ringfenced for them until we think it’s appropriate to gift to them for whatever purpose.

I can’t answer for @Flushitdownbut we did the same. The appeal is it is tax efficient. But I realised it was growing so quickly the amount they would get at 18 would be larger than I could have anticipated and I’d rather them not have control at 18 over a large sum of money. Sometimes it’s not all about tax efficiency.

Exactly. Thankfully I realised fairly early on so stopped putting in.

I wanted to.be able to save to help them in the future, house deposit, uni fees etc but I want some day on what it is spent on..I'm very sensible with money and always have been but DH didn't used to be and fully admits he'd have pissed away £1000s.

I suspect that in reality we'll give them the JISA at 18 and advise it's for driving lessons and a car and if they don't use it for that then provide no further help with driving. The house/ uni fees account is in my name just earmarked in my head as for them.

That will enable you to retain control and make the gift on your terms. Your trade-off is tax on interest, income and gains, and also inheritance tax implications.

If control is more important to you than returns, what you are doing is fine.

The moment that you contributed to the junior ISA is the moment it ceased to me yours. Morally and legally.

It sounds like you wanted the tax advantages of the wrapper but wanted to retain control. You can't have it both ways, although it sounds like you are trying to in a morally dubious fashion.

They will get a big chunk from their ISAs when they are 18. I accept they can choose what to do with it. I hope they will use it wisely, but if they don’t, I’ll be disappointed but it’s not such a huge sum that I would be incredibly upset. Our relationship would not be damaged by that. I think that’s important.