Young adults may have unclaimed Child Trust Fund accounts

Citizens Advice has announced that many young adults may have unclaimed money in Child Trust Fund accounts. These accounts were for children born between September 1, 2002, and January 2, 2011. The government started these tax-free savings accounts with at least a £250 deposit for each child. On average, those eligible could have around £2,000 waiting for them. The money in these accounts can only be accessed when the child turns 18. If a young person is 16 or older, they can manage their own account, but they must wait two more years before withdrawing any funds. People can add up to £9,000 each year to their Child Trust Fund. The income and profits from these funds are tax-free and do not affect any government benefits. Citizens Advice has utilized TikTok to raise awareness about these funds. They advise young adults to check if they have an account. If you suspect you may have a Child Trust Fund, you can contact the account provider directly. If you do not know who that is, you can ask a parent or guardian for help. Alternatively, you can reach out to HM Revenue and Customs (HMRC). They can help locate the account but will require your National Insurance number and, if applicable, adoption details. Typically, HMRC will reply within three weeks if you apply online. The registered contact is responsible for managing the Child Trust Fund until the child is 18 or takes control of the account. Responsibilities include managing investments and updating personal details with the fund provider. As the Child Trust Fund scheme ended in 2011, parents can consider a Junior ISA instead. This account also allows for tax-free savings and investment for children's futures and becomes accessible at age 18.