Unclaimed Child Trust Funds
According to government sources there are over 670,000 young people (aged between 18 and 22 years), who may have cash languishing in a Child Trust Fund Account. And they – and their parents - may not be aware that such an account exists.
What is a Child Trust Fund?
Child Trust Funds are long term, tax-free savings accounts which were set up, with the government depositing £250, for every child born between 1 September 2002 and 2 January 2011. Young people can take control of their Child Trust Fund at 16 and withdraw funds when they turn 18 and the account matures.
What is a Child Trust Fund?
Child Trust Funds are long term, tax-free savings accounts which were set up, with the government depositing £250, for every child born between 1 September 2002 and 2 January 2011. Young people can take control of their Child Trust Fund at 16 and withdraw funds when they turn 18 and the account matures.
Where are the funds held?
The savings are not held by government but are held in banks, building societies or other saving providers. The money stays in the account until it’s withdrawn or re-invested.
How are the accounts funded?
Parents were given the opportunity to deposit funds in these accounts, but government also chipped in. Initial government deposits of £250 were made when accounts were opened (£500 if the child came from a lower-income family), and the same amount when the child turned 7 years old. Children entitled to the Disability Living Allowance received additional annual top-ups of between £100 or £200.
The child's parents or guardians had to be receiving Child Benefit for the child to qualify for the government contributions.
Do you remember setting up an account?
If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly.
If they do not know where their account is, they can use the online tool on GOV.UK to find out their Child Trust Fund provider. Young people will need their National Insurance number – which can be found using the HMRC app - and their date of birth to access the information.
THIS IS A FREE SERVICE, resist seeking the advice of third-party agents advertising their services offering to search for Child Trust Funds as agents will charge.
Please pass on this information to any friends or associates who have children in the 18 to 22 age range. As we have stated in this alert, there are still over 670,000 unclaimed accounts.
