Nephew Investment

Unoriginalguy

I was thinking - instead of buying birthday presents for a 1 year old, I'd stick the money into an investment and then can enjoy it at 18. Maybe do that until they're 7 ish and will want the cash.

Problem is that doing this is very complex. I cannot simply go down, buy a bond, give them that bond, and have them cash it out at 18 for whatever it is worth.

I've read about Child Trust Funds but that is something the parent has to do. Stocks, premium bonds, are not something a child can legally own.

Any suggestions? I want something simple and ideally inflation beating (*most years).

I have done some research but it is hugely complex to say the least. I feel like I need a lawyer just to consider this...

Lokolo

You could always use your own S&S ISA allowance if you don't already, then gift the money at 18. This would be the simple way to do it.....

Unoriginalguy

Lokolo wrote: »

You could always use your own S&S ISA allowance if you don't already, then gift the money at 18. This would be the simple way to do it.....

It would be easy. The only "issue" with that is a social one - namely that it won't seem like a real gift at all. Just "I have money in my account which is his birthday present!"

Even for me it would be a nightmare to track exactly how much he has and also to remember 18 years from now to send it over.

Reaper

The option I went for was an Investment Trust fund set up as a trust fund. It's not as complicated as it sounds as many of the investment companies will do the setting up of the trust for you for free. You (or the parents) could be the trustees. It is also tax efficient as the child's tax allowances can be used and it normally avoids most inheritance tax if that was an issue. For example:

Baille Gifford - I chose this one
F & C - longest running investment company