Date Published: 28/10/2024 14:24
According to the government, £1.4bn is now languishing in forgotten Child Trust Fund accounts. Amber River Leodis Wealth’s senior financial planner, Emma Baumback, highlights the most appropriate actions to take if you have relatives or friends who might benefit...
A HUGE £1.4bn is currently sat unclaimed and unused in Child Trust Funds (CTFs)… and this means that you could potentially have a relative or young friend who’s eligible for a windfall.
CTFs were made available to all children in Britain born between September 1st, 2002, and January 2nd, 2011.
Parents were issued a voucher for £250 or £500 to be paid into a CTF. If it hadn’t been used after 12 months, the government simply opened up an account on the child’s behalf.
The money can be accessed when the child turns 18 and, at that point, the money can be withdrawn or transferred to an adult ISA.
In addition, they can also be transferred before maturity into a Junior ISA.
More than 25% were opened by the government rather than parents which goes some way to explain the high level of unclaimed CTFs.
It’s possible that many parents, guardians and children won’t be aware that they even have the account - or don’t know who the money is with or how to track it down.
If you know a child born between September 1st, 2002, and January 2nd, 2011, who hasn’t already got details of their account, please do make them aware of the need to track it down.
They should start by clicking on the government’s website HERE and filling in the form to trace the money. They’ll simply need their national insurance number and date of birth.
Once they’ve tracked down the money, they can choose what to do with it. Their options are to transfer it to an adult ISA or withdraw the money altogether.
Until then, their money will just sit in an account that no one else has access to.
Anything they transfer to an adult ISA at maturity will not count towards their annual ISA allowance of £20,000.
If you have any questions about the best way to get your finances on track at any point in life, please get in touch with Emma or another member of the Amber River Leodis Wealth team by going to https://amberriver.com/services/
No individual investment advice is given, nor intended to be given in this article and liability will not be accepted in respect of any action you may take as a result of reading this article. If you are unsure you are urged to take independent investment advice.
Future Life Wealth
Management Limited,
Future House,
54 Ravenshorn Way,
Renishaw, Sheffield S21 3WY
+44 (0) 1246 435 996
info@wealthmanagement.uk.com
Opening Hours
Monday - Friday 8.30am - 5.00pm
Future Life Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority
The Financial Conduct Authority does not regulate taxation & trust advice
We are entered on the The Financial Conduct Register No 509960 at www.fca.org.uk/register
The Financial Ombudsman service can be found at www.financial-ombudsman.org.uk
Registered in England No. 07036892 Reg. Address: Leodis House, 11 Pavilion Business Park, Royds Hall Road, Leeds, LS12 6AJ
The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
The value of your investment can go down as well as up and you may not get back the full amount invested.
Your home is at risk if you do not keep up with your mortgage repayments.
Equity release is a lifetime mortgage or home reversion plan. To understand the features and risks please ask for a personalised illustration.
We do not offer advice in relation to home reversion plans.
The tax observations contained in this website are made in good faith and are based on our understanding of current Revenue and Customs regulations. We cannot accept any responsibility for any future regulation that may retrospectively happen.