If you’re the main contact for the Child Trust Fund account you’re called the ‘registered contact’. You have certain responsibilities until the child turns 18, or until the child takes control of their own account. Your responsibilities as the registered contact You’re the only person who can: tell the account provider how to invest the fund and run the account change the address and other personal details change the type of account, for example from cash to stocks and shares move the account to another provider Contact your Child Trust Fund provider to do this. Moving to a different account You can transfer a Child Trust Fund account to a Junior ISA . Contact a Junior ISA provider to do this. Records you need to keep Keep the following paperwork: your child’s Unique Reference Number (you’ll find this on your annual Child Trust Fund statement) the account statements details of the account type and the provider Change a registered contact You can change the registered contact to someone with parental responsibility for the child, like a parent, step-parent or legal guardian if both parties agree to this. Your Child Trust Fund provider can tell you how to change the registered contact of a Child Trust Fund account. When your child is 16 Once your child turns 16, they can either: take over the account by contacting the Child Trust Fund provider leave you in charge of the account

Adding money to the account

Anyone can pay money into a Child Trust Fund account. The Child Trust Fund scheme closed in 2011. You can apply for a Junior ISA instead. How much you can add You can put up to £9,000 a year into the account - the year starts on the child’s birthday and ends the day before their next birthday. If you do not use the £9,000 limit, you cannot carry any unused amount over to the following year. How to pay money in For stakeholder accounts you can add money by: cheque standing order direct debit For savings or share accounts, check with your provider. Government payments Payments made by the government do not count towards the £9,000, apart from payments made by a local council to a child in care .

What happens when your child is 18

On your child’s 18th birthday, the Child Trust Fund matures. This means that: your child automatically takes over the account no more money can be added Your child can either: take out the money transfer the money to an adult ISA The Child Trust Fund will then close. Until your child withdraws or transfers the money, it stays in an account that no one else has access to. If your child lacks the mental capacity to manage their account when it matures You, or a close friend or relative, need to apply to the Court of Protection ( COP ) for a financial deputyship order so you can manage your child’s account when they turn 18. Once the account matures, the money can either be taken out or transferred into an ISA . In Scotland, applications need to be made to the Office of the Public Guardian in Scotland . In Northern Ireland, applications need to be made to the Office of Care and Protection .

Accounts for children in care

Some children looked after by local authorities have a Child Trust Fund account set up on their behalf. The Share Foundation acts as the registered contact for these accounts. How the account is managed The Share Foundation manages the Child Trust Fund account for the child and will: write to the child when they take control of the account change the type of Child Trust Fund account and provider if necessary and write to the child to explain why the change was made send account statements to the child They’ll manage the account until: the child turns 18 the child turns 16 and decides to manage the account themselves someone takes parental responsibility for the child, for example through adoption Take over the management of an account Contact the Share Foundation if you’re taking parental responsibility for a child and want to manage their Child Trust Fund account. The Share Foundation can only help if you are a parent of a child who was in care. If you have any other questions about a Child Trust Fund, you should contact the provider of your fund. You’ll need to provide evidence of parental responsibility, for example an adoption certificate. You’ll get a letter confirming that you can take over responsibility for the account. Show this to the Child Trust Fund provider who can update the account to say you’re the registered contact. Share Foundation Email: info@sharefound.org Telephone: 01296 310 400 Find out about call charges 1st Floor Ardenham Court Oxford Road Aylesbury HP19 8HT When a child in care turns 16 The Share Foundation will write to the child about 2 months before their 16th birthday, telling them how to become the registered contact for the account. If they choose to take control of the account, they can: start managing it when they turn 16 withdraw money when they turn 18

If your child is terminally ill or dies

If your child is terminally ill you can take money out of their Child Trust Fund account. If they die, the money passes to whoever inherits their estate (property and possessions). If your child is terminally ill ‘Terminally ill’ means they have a disease or illness that’s going to get worse and are not likely to live more than 6 months. Only the registered contact can take money out of the account. If you live in England or Wales, you have 6 months from the date of your child’s diagnosis to take money out of the account. If you live in Northern Ireland, you have 12 months from the date of your child’s diagnosis to take money out of the account. If you live in Scotland, there’s no time limit for taking money out of the account. What you need to do Fill in the terminal illness early access form to let HM Revenue and Customs ( HMRC ) know that: your child is terminally ill you want to take the money out of the account You’ll need to provide evidence that your child is terminally ill. If your child dies The money in the account will be paid to the person who inherits the child’s estate. This is often one of the child’s parents, but if your child was married, it could be their husband or wife. If you get Child Benefit for a child who has died this can still carry on for a short time. What you need to do Tell the Child Trust Fund account provider. They’ll usually need proof, for example the death certificate.

Child Trust Fund

Overview

A Child Trust Fund is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011.

Find a Child Trust Fund as a parent or if you are over 16.

The Child Trust Fund scheme closed in 2011. You can apply for a Junior ISA instead.

This guide is also available in Welsh (Cymraeg).

Paying into a Child Trust Fund

You can continue to add up to £9,000 a year to an existing Child Trust Fund account. The money belongs to the child and they can only take it out when they’re 18. They can take control of the account when they’re 16.

There’s no tax to pay on the Child Trust Fund income or any profit it makes. It will not affect any benefits or tax credits you receive.

View a printable version of the whole guide

Child Trust Fund

Overview

Paying into a Child Trust Fund

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Child Trust Fund

Overview

Paying into a Child Trust Fund

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