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The Child Trust
Robert_Sterling_3
Posts: 7,112 Forumite
Letters are going out from next week onward with some details of The Child Trust.
Babies born after 31 Aug 2002 will get a minimum of £250 in voucher form in April 2005.
The older the baby now is the more they get to compensate for the fact that they might be about 2.5 years old and have not earned any interest so far.
Where the total family income is low, under £13,000 per annum, the voucher will be £500+.
The voucher has to be assigned to one of many accounts available.
Accounts can be savings accounts or investment accounts.
The child gets their mitts on the dosh on their eighteenth birthday whether you like it or not ( The money not the child).
Anyone can bung in up to an overall total of £1200 per annum tax free ( lovely ).
For a more weighty exposition of The Child Trust
Visit this Site
Babies born after 31 Aug 2002 will get a minimum of £250 in voucher form in April 2005.
The older the baby now is the more they get to compensate for the fact that they might be about 2.5 years old and have not earned any interest so far.
Where the total family income is low, under £13,000 per annum, the voucher will be £500+.
The voucher has to be assigned to one of many accounts available.
Accounts can be savings accounts or investment accounts.
The child gets their mitts on the dosh on their eighteenth birthday whether you like it or not ( The money not the child).
Anyone can bung in up to an overall total of £1200 per annum tax free ( lovely ).
For a more weighty exposition of The Child Trust
Visit this Site
...............................I have put my clock back....... Kcolc ym
0
Comments
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Where a parent does not transfer the voucher value to a suitable savings or investment account within a reasonable time by default the value of the voucher will be placed in a suitable fund by the government.
A well founded rumour suggests that this might well be with a financial institution which is "proud to be different". ;)
...............................I have put my clock back....... Kcolc ym0 -
Well founded? How do you know that it's well founded?A well founded rumour suggests that this might well be with a financial institution which is "proud to be different". ;)
As I understand it the Inland Revenue will invest the voucher in one of a number of stakeholder Child Trust Funds if the voucher is not invested within 12 months. Which one will be chosen at random from their list.
The Inland Revenue have launched a dedicated Child Trust Fund website which gives much more clearer information about the CTF in an easy to understand language (or I thought so anyway). It includes details of when they will be sending vouchers out to those born between September 2002 and March 2005 and how to invest your voucher. There is also a section on other children's savings for those not eligible for the CTF.
https://www.childtrustfund.gov.uk0 -
The Sunday Herald says that by default the government will open an Equity Trust Fund. ...............................I have put my clock back....... Kcolc ym0
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The Sunday Herald would be right as all Stakeholder Child Trust Funds are equity based.0
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