What is going to happen to my child's Junior ISA when they turn 18?
The Junior ISA will automatically move to an Adult ISA. Your child will be able to instruct us whether they would like to continue to save, or if they would like to withdraw the money from the Plan – or as mentioned above they can do both. Before we accept any contributions into their ISA after age 18 we will need their instruction.
We know that some parents may have decided to keep this as a surprise for their child and have been saving over the years. Although this is a perfect gift, to help with university, towards a new car or even a new home, don’t let the surprise be spoilt by someone else – start talking to your child about their Junior ISA.
If your child’s Junior ISA was originally a Child Trust Fund, when HMRC provide your child with their National Insurance Number in the letter it will state:
“Child Trust Fund
When you turn 16, take control of your Child Trust Fund. Ask your parents or guardian, for more information go to www.gov.uk/child-trust-funds”
So your child may come to you with some questions about whether they have one, and then ask why they do not have one.
As more children start to receive their National Insurance Number letter, or see the news and information available online about Child Trust Funds this could also ruin the surprise and even maybe cause a little confusion.
Additionally, whether the Junior ISA was originally a Child Trust Fund or not, we legally have to write to the child one month before their 18th birthday to let them know that their Junior ISA will be automatically rolling into an Adult ISA.