Top Child Trust Funds Article Discussion Area

cloud_dog wrote: »

I don't think anyone can really answer this as it all comes down to your situation / risk attitude.

Some people look at the CTF money as 'free' money and are therefore happy to take risk with it but....... Its up to you.

Fair enough. Guess I should just go make a decision and go for it!

I was wondering if anyone can recommend the best bank or building society to put set up my sons child truct fund, have received 250 from the government and will be adding to it monthly.

Many Thanks

Does anyone know which child trust fund is best at the moment to invest in? Either of the three choices, stocks and shares high risk, low risk, or the "just savings" one... and who with?

davidshads wrote: »

We would like to open a trust fund for each of our children which they can't access until their 25. Are there any such funds?

Not sure if you are talking in terms of a Child Trust Fund (CTF), government scheme, or putting the money in to trust for the child.

You would not be able to do what you want via a CTF as the money becomes the childs on their 18th birthday so..... You are left with creating a deed of trust, of some sort, depending on circumstances.

I need to confirm that I am no expert but......

A Bare Trust probably is not what you want as generally these cease at age 18 and the money belongs to the child. I think there are occurances wherer these can go to age 21 (some building society savings accounts may allow for age 21).

You need to decide what rules / constraints are applicable to the money, i.e. is the money to be put in to trust until age 25 and then all the money goes to the child or is the money in trust for the child (age 25) but you have discretionary access for the benefit of the child, i.e. University fees or a car before age 25. I believe this is called a Discretionary Trust. If the money is in your name but 'in trust' for a child any income (or capital gains) will be taxed against you and not the child.

Unfortunately after all of this I don't have an answer for you. In fact I am researching trying to do something similar for my mum who wants to gift a few thousand to each of her grandchildren but for some of the money to be directly attributed to the child (at a certain age) and for some to be managed by the parents with any unused monies going to the child by a certain age.

The only thing I keep comming up with is that you should consult with a solicitor to arrange.

Ok I don't understand how my children's trust funds are working. They both have Childrens Mutual ones. DS is 3.5 and he has £203 in his now which is a substantial loss on what has been put in but DD who is only 1 has £608!

Long term is this going to pan out fairly, the woman on the phone said that DS will have more shares and long term they will be worth more as he still owns all the shares that have been bought but is this even right? Surely they are buying and selling shares all the time not just keeping them all? Also why such great performance for one account and not the other?

I have stopped paying in monthly because I do not want to throw money away but I am a bit worried that DS will feel hard done by if DD gets a lot more money than him. Does anyone understand how it all works?