investing for children outside CFT/JISA

riskyb

Hi all, I am looking at how to invest in stocks and funds for children (under 2 years old). I know enoguh about the junior isa and the CTf's and I am looking at other options. I would prefer the stocks / funds are held in their names but with me having control over the account and being able to withdraw it if we need to.

So far I have come across the junior investment account from the share centre where u can have a 1) designated account - held in your name or 2) a bare trust - account held in trust for child till they are 18 and so not part of parents estate and as long as income not more than £100 then parents not liable for icome tax.

My questions are 1) has anyone here used this method of saving for thier children? Any pro's and cons?
2) are their other options / companies out there that I can check out?
thanks for your help
RB

Reaper

Yes I have. I chose the Bare Trust option with an Investment Trust called Baillie Gifford. Details here:
http://www.bailliegifford.com/pages/UKPersonalInvestors/Children/InvestingforChildren.aspx

You have a choice of 8 funds which you can mix and match. I mostly went for the Scottish Mortgage fund (nothing to do with housing!) as it is a steady performer and has low charges.

I also liked that you could choose the end date, it did not have to be on the child's 18th birthday (I chose to keep control until 21), though I am a little unsure of legality of that if the child demands the money at 18.