Does Your Child Have Forgotten Savings?

By PAULA HURFORD, Wealth Management Consultant

We’ve found all the Easter eggs for this year, but there may still be something left for us to hunt for. For those of you with children, grandchildren, or nieces and nephews, here is something that could affect them.

Child Trust Funds

In October 2022, HMRC issued a press release* stating that thousands of teenagers could be missing out on unclaimed amounts in their Child Trust Fund (CTF) account. A CTF is a long-term savings account which was set up for every child born between 1 September 2002 and 2 January 2011. To encourage saving, the Government provided an initial deposit of at least £250.

The CTF account matures when the child turns 18 years old with the first accounts maturing in September 2020 and the last in September 2029. On maturity, the account can either be cashed in or transferred into an adult ISA. Those who are aged 18 or over and have yet to access their CTF account, could have savings waiting for them worth an average of £2,100.*

Help when needed

Many eligible teenagers who have yet to claim their CTF savings might be starting university, apprenticeships, or their first job. The lump-sum amount could offer a financial boost at a time when they need it most, which is especially helpful to parents in a cost-of-living crisis!

If the child or their parent/guardian know who their CTF provider is, they can contact them directly, or alternatively, they can use HMRC’s online form to locate their CTF account using the link: www.gov.uk/childtrust-funds/find-a-child-trust-fund

ISAs

In January 2011, the CTF was replaced with Junior Individual Savings Accounts (ISA). There are different types of Junior ISAs, including cash and Investment based ones. Once a minor becomes an adult, they can invest in regular ISAs. Always seek advice if you are thinking of investing on behalf of a child.

If you would like help to understand the savings options available for your child or grandchild, or if you would like to look more specifically at the options for your child’s maturing CTF, please do not hesitate to contact me.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

A favourable tax treatment given to a JISA may not be maintained in the future, as they are subject to changes in legislation.

* HMRC 05/10/22: Teenagers could be missing out on a stash of cash

By Paula Hurford of Hadlow Edwards Wealth Management Limited hadlow.edwards@sjpp.co.uk

01978 311 611