What happens when your child turns 18

When your child was born, you made the wise decision to set up a Child Trust Fund that’s close to reaching maturity now they are approaching their 18th birthday. Once they turn 18, they’ll need to make a decision where they will be asked to make an instruction on the account, which could involve them continuing their investment journey or withdrawing the money invested.

Below you’ll find details of what will happen to the account on their 18th birthday and the options that are available to them.

What happens on their 18th birthday?

On the child in your life’s 18th birthday, their Child Trust Fund will turn into a matured CTF account, meaning it will have the same benefits and charges as before, but it will be closed to any new investment. The matured CTF will remain the same as before until they tell us what they want to do with their investment.


We can’t accept new contributions into a matured account (even from you) so any direct debits will stop on, or before, their birthday but the annual charges on the account will remain the same as before (£25+VAT on a shares account or 0.7% of investments for a stakeholder account).  We can help start direct debits up again if they transfer into a new account though.

Father is cooking dinner with his son
Boy sitting in front of computer

Your child will receive a letter from us around the date of their 18th birthday asking them to make a decision about their investment. The quickest and easiest way to go through their maturity journey is online, on our Investor Portal.


Alternatively, they’ll find a form on our CTF hub which they can fill out and send back to us to let us know their decision. Please note this can only be done once they’ve turned 18, but they don’t have to make a decision right away.


We’ve listed the options available to them below, but should you or your child have any questions about the process or the options, you can contact us.

Let’s talk about risk

The value of their investments and any income from them can go down as well as up and they may not get back the original amount invested. Tax allowances and the benefits of tax-efficient accounts are subject to change and tax treatment depends upon your individual circumstances.

What options are available to my child when they turn 18?

Continue investing

They can transfer into our CT ISA, CT GIA, or CT LISA. Key information on both of these products can be found in the section below.

Withdraw the investments

They are able to withdraw the money that’s been invested, without paying a fee.

A combination of both

You can also transfer some of your shares into one of our adult plans and withdraw the rest.

Continue investing and keep the same fees until they turn 21

They can continue to invest for their future with Columbia Threadneedle by moving into one of our three investment plans for adults with no transfer charges.


We’ve also reduced the annual charge on our adult products until your child turn 21, meaning they’ll benefit by keeping the same rate as the shares CTF (£25 + VAT) rate for up to three years. Read more on our three investment plans below.


Alternatively, they can also transfer the account to a savings plan with another provider.

Our adult Savings Plans

CT General Investment Account (GIA)

A flexible solution for long-term investors, with no annual limits.

CT Individual Savings Account (ISA)

A savings plan with no income tax or capital gains tax paid on any profits.

CT Lifetime Individual Savings Account (LISA)

For those aged 18-39 saving for their first home.

What happens next?

Between now and their 18th birthday, they should have a think about what they want to do with the money invested. As a parent or guardian, you could play an important role in their decision-making process so it would be beneficial to discuss their options with them. Ultimately, though, only the young adult can make and give us their decision. Whilst we can’t accept an instruction about the future of their investment until they’ve reached 18, there are a couple of things that they can do now.

Firstly, download the Update Contact Details form, which is designed for your child to fill in so that we can keep in touch with them regarding the account and also to provide details of anyone they’d like to help with the account once they’ve turn 18, should they wish. It’s important we have their correct contact details in order to update them with any actions they may need to take regardless of which option they decide to choose.

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