Help on savings for my baby

jdavies_3

Hello
I am looking for some advice:
My little boy is 8 months old and I have a childs trust fund set up for him, which pays out to him when he is 18.
I am also wanting to start up a monthly payment plan seperate to pay for his university fees - but I am wanting it in my name so that I can make sure he spends it correctly!!

I am wanting something the same as the trust fund, where I can not get the money out until x amount of years..... is there such a thing?

Many thanks

Jenny

Reaper

If you have not already used up your allowances then the simplest and most tax efficient way is to open either a cash ISA or a Stocks & Shares ISA (the better option in my opinion) or both in your own name.

Then when you want him to have the money you can simply gift it to him. It remains your money up until that point.

EDIT: P.S. Perhaps I ought to mention the downsides too in case they are relevant to you. If you die before gifting it to him or within 7 years of doing so there might be inheritance tax to pay on the money if your total worth comes exceeds the inhertiance tax thresholds. Also as the money will be in your name then to make absolutely sure he gets it if you were to die early I suggest you say what is to happen to the account in your will.

blinko

the best way is to keep control of it yourself, and use up ISA allowance and so on, i dont think there is anyting that will let you have it in someone elses name but you have control unless of course you dont tell him the password etc....

and 18 yers ia good timeframe to invest....

Reaper

blinko wrote: »

i dont think there is anyting that will let you have it in someone elses name but you have control

Actually you can using either a "Designated" or "Bare" Trust, or various other more obscure options, but it wasn't gioing to delve into that unless the OP said an own-name ISA wasn't what they wanted.

Cautious_Investor_3

Hi

I'd agree, no need to over complicate this, use an ISA for the tax efficiency and you can choose from either an equity or cash ISA depending on your attitude to risk.

Clearly you will have access to the money as it will be held in your name, the obvious answer to this is to be controlled and disciplined .

You could use trusts etc if you really do not want to have access to the money, but these can be expensive.

I hope this helps.

The Cautious Investor

Jake'sGran

Some of the better known investment companies have special schemes for young children but I think your name has to be shown too. If you Google for "investing for children" you might find something that will suit you. I do know that some of these investments for children do have a minimum amount each month e.g. £50. Have a look at Fidelity and M&G.