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Child Trust Fund as Godparent
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# 1
dave82
Old 26-04-2011, 5:10 PM
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Default Child Trust Fund as Godparent

Hi,

I am going to be godfather to my mates baby this weekend and rather than buy something useless I would like to start a trust fund with 100.

Any recomendations and how do I go about opening the fund?

Cheers D
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# 2
Reaper
Old 26-04-2011, 7:36 PM
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Default

Are you talking savings or investments? Some options copied and pasted from another post:

1) Add it to their CTFs if they have them, or Junior ISAs when they come out later in the year
2) Put it in your or the the parent's ISAs to hand out at a future date if you have not used up your limits.
3) Put it in a children's savings account. But keep an eye on it and be ready to keep switching as rates drop.
4) I would favour investing most of the money rather than putting it in savings accounts as investments ought to do better over the long term. The two standard options are:
A Designated Account - owned by you but just earmaked as being the child's money. As such withdraws can be made at any time for any reason and need not even benefit the child. The downside is it is taxed as being your money.
A Bare Trust - the money belongs to the child and is taxed as being theirs. 2 or more "Trustees" operate the account on behalf of the child.
Baille Gifford and F&C are two examples I often give. Of the two only Baille Gifford allows lump sums starting at 100.
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# 3
dave82
Old 27-04-2011, 12:48 PM
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Thanks. Sorry just spotted there is a sticky on this subject. The Baille Gifford one looks like the sort of thing I am after.

D
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