Can You Close a Junior ISA Before Age 18?
Understand if and when you can access Junior ISA savings before a child turns 18. Learn about the rules and limited early withdrawal options.
A Junior Individual Savings Account (JISA) is a long-term savings and investment account designed for children in the United Kingdom. These accounts offer a tax-efficient way to save money for a child’s future. While the funds within a JISA are generally locked until the child reaches 18 years of age, there are limited circumstances under which early access or closure may occur.
General Rules for Junior ISA Fund Access
Funds invested in a Junior ISA are legally owned by the child, not the parent or guardian who opened the account. Neither the child nor the registered contact (the adult managing the account) can access the money before the child’s 18th birthday. Parents cannot withdraw money from a JISA, as the funds are designated for the child’s future. This rule ensures the long-term benefit of the savings for the child.
When the child reaches 18, the Junior ISA automatically converts into an adult ISA. At this point, the now-adult child gains full control over the funds within the account. They have several options, including withdrawing all or part of the money, transferring it to another adult ISA, or continuing to invest it within the converted adult ISA.
Specific Scenarios for Early Junior ISA Closure
Limited circumstances permit the closure of a Junior ISA before the child turns 18. One scenario is the terminal illness of the child. If a child is diagnosed with a terminal illness, meaning an illness expected to worsen and lead to death, an application can be made to HM Revenue & Customs (HMRC) to release the funds early. This process requires specific medical evidence and HMRC’s approval.
Another circumstance for early JISA closure is the death of the child. In this event, the Junior ISA will be closed. The funds held within the JISA will then be paid out to the child’s personal representative as part of their estate. Upon the child’s death, the funds become part of their estate, subject to inheritance rules.
Steps for Accessing Junior ISA Funds
Accessing Junior ISA funds, whether at maturity or under exceptional circumstances, involves specific steps. For both scenarios, the first action is to gather necessary information and documentation. This includes the JISA account details, the child’s identification documents such as a birth certificate or passport, and proof of address. For early closure due to terminal illness, specific medical certificates and evidence are required, while for death, a death certificate and probate documents are necessary.
Contacting the JISA provider is an initial step to understand their specific requirements and obtain any necessary forms. Providers will guide the account holder or their representative through the procedural actions. These typically involve submitting completed forms and documentation, either via post or through a secure online portal.
After submission, the provider will verify the information and process the request. Processing times for funds to be released or transferred vary by provider. Funds are usually disbursed via direct bank transfer for withdrawals or transferred to an adult ISA upon maturity.