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Where Taxpayers and Advisers Meet

Bare Trust transfer to a JISA

sigmund
Posts:87
Joined:Mon Nov 02, 2009 10:03 pm
Bare Trust transfer to a JISA

Postby sigmund » Wed Mar 17, 2021 6:49 pm

I would be very grateful if anyone could give me advice on the following. I and my eldest daughter are trustees for a bare trust in favour of my grandson (the son of my youngest daughter). If my youngest daughter opens a stocks and shares JISA for her son, is it possible, as trustees, for us to transfer £9000 per annum from the bare trust to the JISA? If it is possible, would it be advantageous and could it cause any difficulties?

Stats
Posts:12
Joined:Mon Mar 05, 2018 10:07 pm

Re: Bare Trust transfer to a JISA

Postby Stats » Wed Mar 17, 2021 10:27 pm

If the money is already in a Bare Trust, it is effectively the grandson's anyway so I cannot see a problem. It is effectively a left-hand to right hand transaction. If this is planned to be a annual event, perhaps consider the grandparents making the payment directly.
If regular and, grandad's finances permit, the cash could arguably be exempt from IHT under the presently-generous rules permitting "regular" gifts out of "surplus" income. There may be complications though if the source is the parents, as opposed to grandparents.


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