?s there a child's account that I can be in charge of until 21 or even older?

[HairBobbles]

As things stand my 17 year old gets access to their money at 18 next year. This is in no way a good idea believe me. I would prefer to keep hold of it and allow access as needed . Are there accounts that allow this or would it basically have to be in my name?

No, 18 is the limit.

No, there isn't. What you could, however, do is tie up the money for certain periods of time. Let's say you want to make £1k available every year and the account has £3k. You could invest £1k in a saving account tied up for 1 year, another £1k tied up for 2 etc. This way the money doesn't become available all at once.

Could you not do this with a trust? Or just save it in your own name and not mention it until they are 21?

Sorry- I didn't read the op properly. So if the money is already in an account in their name, they will be able to access it. Could you incentivise them putting it in a lifetime isa?

Do they know about it?

DS has a savings account that I haven't told him about. He is 18 and doesn't need the money.

If it is a child trust fund or junior ISA the money is legally theirs. If they don't know about it you could forget to tell them, but you can't take the money out yourself and add to another investment. You don't get to decide when or how much they get.

Setting up a trust (which is not an option in OP's case) is massively complex; it requires professional legal and tax advice and, in general, it's only worth it for very substantial sums. The trust would need to get its own Legal Entity Identifier, not all brokers open accounts for trusts, you need to be on top of the tax implications, etc.

So I couldn’t move it and put it in an account in my name and use it for him on an as needed basis? I have an older child who has access to their money and that’s ok. They are sensible but this DC could blow a lot of money in zero time on utter rubbish.

It becomes there money at 18. My dd’s automatically moved into a direct isa though so if your child is not aware of it something like this might happen and you can just let it stay there for a couple more years.
Find out from the provider what happens when the child turns 18.

Did you put the money in? If so you can move it into your name no problem.

Money came from us and grandparents . Even moving some of it would make me feel less anxious. I would like it to help them buy a car or save to house deposit or university etc and not fast food and fun days out!

I thought I'd get round this by just not telling them the savings existed, but the companies write to them direct once they're of age, so that was a poorly thought out plan

Yep ds2 got a letter about his child trust fund. Even though I don't get the statements anymore because we moved and I didnt update them.
I had mentioned it to him though so he didn't get a shock.
Neither of us knows how much is in it.

I think all you can do is say something like 'if you're up for putting all of this in a lifetime isa (or some other fairly locked account) I will buy you a ps5/driving lessons/whatever.

If they're actually genuinely not able to manage money for reasons related to mental capacity, you could look into guardianship.

Hope you find a solution. I’m wondering what to do for my late teens too. I’m veering towards starting a junior SIPP that would then transfer to them for management at 18 but there obviously are no withdrawals allowed until around age 57. So only useful if you want to help them with pension savings, not for savings for first house purchase etc

Also, don't forget that pensions are tax-free now, but will be taxed when they are accessed. Whereas an ISA invests post-tax, not pre-tax money, but then the money doesn't get taxed when accessed

It depends where this money is to start with.

If it's in a CTF then no, you can't.

If it's in a trust or similar and it's in your name, then yes, there are ways around it.

One family do family bonds that are given to the child at 21 or 25, but they only let you save £270 each year.

www.onefamily.com/family-bond/

So I couldn’t move it and put it in an account in my name and use it for him on an as needed basis?

No, because that's called theft. You don't get to steal an adult or near-adult's money just because you think you have a better idea of how to spend it than they do.

Money cannot be removed from a JISA or Child Trust Fund unless the child dies or is terminally ill. It passes to the child's control at age 18 and then is theirs.

Just to be clear the money would still be theirs. I would have no issue on them spending it , just not on fast food and sweets !

I have sleepless nights about this. I'll be heartbroken if mine fritter their money.
I can't put it in my name as I get tax credits.

buffy it's not theft if you're protecting then from wasting it and regretting it.

@megletthsecond It is theft. Period. If you disagree, try to take their money - then good luck explaining it to the Crown Prosecution Service.

If you don't want the kids to have access to the money, keep it in your name (with all the tax consequences that derive).

If you want the tax benefits of a child ISA, then put it in the child's name, which means it is their, not yours. Period.

If you are really wealthy and the amounts in question justify it, think of setting up a trust.

AFAIK there are no other options.

Why can only the wealthy set up a trust fund? Am I missing something?

@olivehater

Why can only the wealthy set up a trust fund? Am I missing something?

Because it's an expensive, involved process, and it's not worth it if the amounts are small.

You need tax and legal advice. You need a lawyer to write the trust documents. You need to get a LEI (legal entity identifier) for the trust, and to open saving/investment accounts in the name of the trust (not all brokers do, those which do often charge more). You need a tax accountant to file returns etc.

If you have "only" £10k, it's not worth it.

If you have, say, £300k, it may be worth it.

OP, how is the money currently held? Is it in their name? Is it in an ordinary savings account or something like a child trust fund or junior ISA?
You on very,very shaky ground legally if you do anything with money that is in your son's name without his knowledge and consent. As an adult under the mental capacity act he will be presumed to have capacity and that act specifically protects the right to make decisions that others pay perceive as foolish.
Have you actually discussed this with him? He might recognise the risk that you see and agree to tie up some/most/all the money in a longer term investment.