Best thing to do with children's inheritance?

[withgraceinmyheart]

My kids have inherited just over £10K each from a grandparent. It's been transferred into my account.

Any ideas where the best place to put for them would be? They're preschool age so wouldn't be withdrawing anything from it for a while. Is it best to keep it as one pot or separate accounts?

I'm totally clueless so any help would be gratefully received!

Thanks

Junior ISA? Premium Bonds?

Look on money saving expert for the best investment accounts. £10k is the minimum you need for any chance of a return on premium bonds so it might be worth it, but depending on your attitude to risk you could do better in a decent equity fund. My kids' money is invested in a stocks and shares isa and grows about 10% a year but please look at MSE and make sure you understand any financial product you buy yourself, don't just get it off recommendations!

And just to add I'm so sorry for the loss of your parent x

Stick it in a junior isa for each of them. Stocks and shares investing in a vanguard etf .
Theres lots to choose from. Problem is over the long term it will lose value due to inflation.
If you were only keeping it for a couple of years then premium bonds or a normal child savings account. There are regular savers that give you 5% interest each year. But over the long term - years and years. As above. Stocks and shares junior isa. Vanguard etf.

Ime accounts with you as the trustee.

Thanks for the suggestions everyone. Going to have a look around at the options suggested.

Not at all implying all dh's morph into twats but my friend's now exdh took control of her dc's bank accounts when they split.. Never been seen since... Your family's gift to your dc should be in your hands...

That's awful Easter. It's actually from my DHs family not mine anyway, but it is still worth thinking about what happens to it if we spilt up so will consider that.

I think having separate accounts would be easier in the long term. Our DC were given some money in a single account. It made the calculations of how much each one has remaining ridiculously complicated because of inflation / interest etc.

Junior ISA or similar in their name.

That way it's ring-fenced for them.

If it stays in an account in your name and you hit financial difficulty and need a means test or go bankrupt it will look like your money and could effect how much benefit you receive or be lost to creditors.

Only do junior ISA if you don't mind if they spend it all as soon as the account becomes theirs. If you want to be able to give them money from it when they need it then best to keep it in your control of you are allowed to do this.

Premium Bonds!

Only do junior ISA if you don't mind if they spend it all as soon as the account becomes theirs.
DD had a junior ISA but it didn't automatically go to her at 18. I had a choice of signing it over to her, withdrawing the funds or moving them to an alternative product.

Equities would be my preference in this market.

If I had only 1 child I would go for premium bonds but I have chosen not to with my 2 dgc who are siblings. I know once kids grow up some in the family end up better off than others through different jobs. success at school ext but I wouldn't like it to happen while they were kids through my gifts to them. What if one of them won a million pounds or £100000 ...an amazing life changing thing to happen for them ...and the other won only a few pounds here and there. Could the adults in charge of the accounts just split winnings between them? Is that allowed? Of course once they were a certain age they manage accounts themselves. They may or may not agree to such an arrangement into adulthood ...can't see it happening though. So possibly immense jealousy /resentment of sibling ...and all because grandma invested a few hundred pounds for them. Definitely not for me.

It's their inheritance. They should access it at 18. Junior isa.

Red

I didn't say it wasn't, or that they wouldn't?

@withgraceinmyheart

Red

I didn't say it wasn't, or that they wouldn't?

I know you didn't but some if tge replies did.

I would go premium bonds (in their name).

Whilst investing would be what I would do with £10k if it was for me, there is always a risk that the investment could lose value. I wouldn’t want to do anything that puts the inheritance at risk for my children.

With premium bonds it’s pretty safe, you’d expect a few small wins over time, and of course there is the chance of the big jackpot!