Imagine this: you’re getting ready for your child’s future, maybe college or a first car. You remember something about a Child Trust Fund account set up years ago, but where is it now?
Don’t worry, you’re not alone! Many people have misplaced the details of their Child Trust Fund accounts. This guide will give you a clear path to finding that account and accessing those valuable funds.
What is a Child Trust Fund Account?
Before we dive into the “how,” let’s have a quick refresher on “what.” A Child Trust Fund (CTF) is a long-term savings account that the UK government started in 2002. Every child born between September 1, 2002, and January 2, 2011, received a voucher to start one of these accounts. Parents, family, and friends could add to the account, and the money would grow over time.
There were two main types of CTFs:
- Cash CTF: This is like a regular savings account where the money earns interest.
- Stocks and Shares CTF: This type invests the money in things like company stocks, which have the potential to grow more but also come with some risk.
When the child turns 18, they take control of the account and can use the money however they choose.
Why Can it be Difficult to Find a Child Trust Fund Account?
It’s easy to lose track of a Child Trust Fund account. Here are some common reasons why:
- Time: Many accounts were opened over a decade ago. People move, change their names, or simply forget where they put important documents.
- Account Inactivity: If no one has added money to the account for a while, it might have slipped your mind.
- Change of Provider: The bank or building society that manages the CTF might have merged with another or changed names, making it harder to recognize.
How to Find Your Child Trust Fund Account
Now, let’s get to the important part: how to find your child’s CTF account. Follow these steps, and you’ll be well on your way to rediscovering those funds!
Check Your Records
The first step is to look through your own files. You might have received letters or statements about the CTF. Check these places:
- Filing cabinets: Do you have a dedicated space for important documents?
- Old emails: Search your inbox for terms like “Child Trust Fund,” the provider’s name, or the account number.
- Bank statements: Look at old bank statements for any regular payments to a CTF.
Contact the CTF Provider
If you remember where you opened the account, contact the provider directly. They can help you locate the account if you provide some basic information, such as your child’s name, date of birth, and your National Insurance number.
Use HMRC’s Online Service
If you’re still unsure which provider holds the account, HMRC can help. They have an online service specifically designed to help you find a Child Trust Fund account. You’ll need a Government Gateway user ID and password to access this service. If you don’t have one, you can create one easily on the HMRC website.
Here’s how to use the HMRC service:
- Go to the HMRC website: Find the “Child Trust Fund” section.
- Log in: Use your Government Gateway credentials.
- Provide information: You’ll need to enter your child’s details, including their name, date of birth, and National Insurance number.
- Submit the request: HMRC will then search their records and tell you which provider holds the account.
Write to HMRC
If you prefer not to use the online service, you can write to HMRC. You’ll need to include your child’s full name, date of birth, address, and your National Insurance number. Send your letter to:
HMRC Child Trust Fund Team PO Box 1973 Newcastle upon Tyne NE98 1ZZ
Consider a Tracing Service
If you’ve exhausted all other options, you could consider using a tracing service. These companies specialize in finding lost financial accounts. However, be aware that they usually charge a fee for their services.
What to Do After You Find the Child Trust Fund Account
Once you’ve located the account, you can:
- Add to it: Continue saving for your child’s future.
- Transfer it: You might want to move the account to a different provider that offers better interest rates or investment options.
- Discuss options with your child: If your child is approaching 18, talk to them about how they plan to use the money.
Tips for Managing a Child Trust Fund Account
- Keep records organized: Store all documents related to the CTF in a safe place.
- Review the account regularly: Check the balance and performance, and make adjustments as needed.
- Consider your investment options: If you have a Stocks and Shares CTF, make sure the investments still align with your risk tolerance.
- Talk to your child: As your child gets older, involve them in decisions about the account.
Common Challenges in Finding a Child Trust Fund Account
| Challenge | Solution |
|---|---|
| Forgotten provider | Use HMRC’s online service or write to them. |
| Lost paperwork | Contact the provider directly with your child’s information. |
| Account is with a provider that no longer exists | HMRC should still have a record of the account and can direct you to the new provider. |
| The child’s name has changed | Contact the provider with both the old and new names and provide supporting documentation. |
What Happens to a Child Trust Fund Account at Age 18?
| Options | |
|---|---|
| Account Ownership | The account automatically belongs to the child. |
| Access | The child can withdraw the money or transfer it to a different type of account. |
| Maturity | The CTF matures, and it can be converted into an adult ISA. |
Conclusion
Finding a lost Child Trust Fund account might seem like a daunting task, but it doesn’t have to be. By following the steps outlined in this guide, you can increase your chances of locating the account and making the most of this valuable resource for your child’s future.
Remember to keep your records organized, review the account regularly, and involve your child in decisions about their financial future.
FAQs
How can I find my child’s Child Trust Fund account if I don’t have the account number?
You can still find the account even without the account number. HMRC’s online service and their postal search only require your child’s personal details and your National Insurance number.
What happens to a Child Trust Fund account if the child passes away?
In the unfortunate event of a child’s death, the funds in the CTF will become part of their estate and will be distributed according to their will or the rules of intestacy.
Can I transfer a Child Trust Fund account to a Junior ISA?
Yes, you can transfer a CTF to a Junior ISA. This might be a good option if you’re looking for better interest rates or investment choices.
My child has a disability. How does this affect their Child Trust Fund account?
If your child has a disability, they may be eligible for a Child Trust Fund with additional government contributions. You can find more information about this on the HMRC website.
Can I open a Child Trust Fund account now?
No, the Child Trust Fund scheme is closed to new applicants. However, you can open a Junior ISA for children born after January 2, 2011.
