What should we do with DDs Child Trust Fund

[StarcourtMall]

DD is 19 and her CTF matured last year. I think it got moved to an ISA or something but we haven’t touched it since.

DD has learning disabilities and is partially sighted, so no driving lessons / car to pay for, no university fees and will continue to live with and supported by us for the time being (she goes to college). She doesn’t really ask for a lot, so what she needs she can pay for out of her PIP / pocket money.

I just don’t know what to do with her money until she needs it? Should I move it or leave it where it is? I think there’s about 10k in there and she has another savings account that has about 3k in there which she uses sometimes if she wants holiday spending money or something big like a laptop.

I don’t want to build up too many savings in her name as I’ve heard it can prevent her being eligible for some benefits in the future and she will never earn above NMW.

Any advice?

Premium bonds? She might get a few wins over the year to build it up or wins can be paid to her to spend

High interest fixed rate bonds. Maybe put aside for 2/3 years- get more interest.

Tbh I'd consider buying premium bonds in your name so that the money wasn't in her account.

I wondered about premium bonds. She always wins at tombolas lol!

It's her money
Why don't you ask her what she wants to do with it

Because of her learning difficulties she wouldn’t understand the different options, risks etc. She doesn’t even understand the value of things. She wouldn’t know if a house cost £500 or £5million.

Open an isa In her name . Tax free savings up to £20k per year .
I can recommend looking at vanguard Isa's.

In terms of savings limits, I would still seek to grow this money if you can, but plan that she starts to 'pay her way' by contributing eg a small rent payment or towards bills once she's finished college etc, if her savings have grown enough to be near relevant thresholds. It is her money that would then be meeting her expenses, but at least maintain the advantage of her having savings that can get something special or useful when a need comes up. Moving it to some sort of investment fund within an ISA would seem sensible I think.

What I don't know is how you manage the issues of who controls it and how the account is operated. Good luck.

If you're concerned about her entitlement to means-tested benefits, you might want to consider a Trust fund to ringfence her investments. You can still put into an ISA or similar but the money is controlled by her trustees.

Stocks and shares ISA, you might as well make some money on top of it.

Invest the 10 grand into stocks n shares isa if she won’t need it for min 5 years fidelity has lots of fund choices. Keep the 3k savings in something easily accessible say premium bonds so it can be spent as need arises. Don’t try to hide the money to stop entitlement to benefits as if they investigate you can get into a deliberate depreciation of assets fraud situation