childrens share isas

mrsS_2

Hi- have been trying to find out if i can invest in stocks and share isas for my 2 young children.(idea being thay will help fund university hopefully)

I have been trawling the internet and some articles say they cant have one until they are 16 (18 in some articles) and others say that I can. I dont want to waste time contacting companies if it is a no go.

I would be grateful for any replies

thanks in advance

dunstonh

Not until age 18 (cash iSAs from 16).

You can use unit trusts though and there would be no difference with most funds unless you intend putting rather large amounts in.

si1503

You can open a designated ISA so that once they become 18 the funds pass into their name and control.

RayWolfe

Don't think you can!

tom188

No the ISA is a wrapper and is only available to those over 16 for cash and 18 for stocks and shares. They cannot be designated to other people.

You can have a unit trust designated to them which can be transferred to them at some future date (eg age of 18).

Bear in mind the rules about parental gifts and the paying tax on them,

david78

si1503 wrote:

You can open a designated ISA so that once they become 18 the funds pass into their name and control.

No you can't. Only an Individual can open an account for him/herself. You can't open one for somebody else. Its what the I in ISA means.

As stated above you have to be 16 or older to open a cash ISA and 18 or older to open a stocks and shares ISA.

If they are young children and non-taxpayers, it would be acceptable to just open a unit trust, OEIC, or investment trust savings scheme for them. Then you can do this as a bare trust or just designate the account as theirs.

mrsS_2

thanks to all who posted on this one- much appreciated

si1503

david78 wrote:

No you can't. Only an Individual can open an account for him/herself. You can't open one for somebody else. Its what the I in ISA means.

As stated above you have to be 16 or older to open a cash ISA and 18 or older to open a stocks and shares ISA.

If they are young children and non-taxpayers, it would be acceptable to just open a unit trust, OEIC, or investment trust savings scheme for them. Then you can do this as a bare trust or just designate the account as theirs.

You are quite correct, kids can't open ISAs unfortunately, I wasn't really thinking when I made the post. You could open an account in your name to transfer to them once they become 18, however it wouldn't be able to be an ISA (tax-free) and would still be treated as part of your income, hence you'd be taxed on it.