Unexpected 18th birthday windfall

Linda Johnston

15 September 2020

A neat piece of future planning has started to deliver. From 1st September 2020, turning 18 has an additional cause for celebration.  From that date, 18-year-olds are entitled to encash a Trust Fund set up on their birth by the government.

From September 2002 until January 2011, £250 was invested for each baby born in the UK entitled to benefit from Child Benefit, with a further minimum top up of £250 at seven years of age. Many savings pots could now be worth £1000. Parents could add to these savings over the years but could not access the money themselves.

However, many 18-year-olds may not know about their Child Trust Fund. Their parents may have forgotten, become estranged from the children, or moved from addresses the yearly investment statement was sent to. 

If parents didn’t use the opportunity when their baby was born, the opportunity was not lost, and the Revenue invested on their behalf.

While large 18th birthday parties may not be possible this year with Covid-19, it’s comforting to know that 2020 has something good to offer those coming of age.

Might you or someone you know be in line for this bonus? Check online through www.sharefoundation.org or www.gov.uk searching Child Trust Fund. The happy 18-year-old will need to have to hand their National Insurance Number and date of birth.