Saving for a child? (Not comfortable handing over at 18)

xylophone

Llyllyll wrote: »

This is a very timely thread as I am interested in this also.

Knowing nothing about trusts but having just briefly looked at HMRC's website, would a discretionary trust not be suitable?

Not unless you do know something about Trusts and are prepared to deal with the complex tax treatment.
http://www.hmrc.gov.uk/trusts/types/minors.htm
http://www.hmrc.gov.uk/trusts/types/discretionary-accum.htm

property.advert

Mmmmm..... so we have some who would squirrel it away or invest it. Worthy perhaps but life is also for living and memories of a summer in the Mediterranean will live on longer than any compounded interest received.

Bringing up kids to think only one way or the other is hardly perfect. The truly balanced mind will assess the merits of each course of action and the impact on future needs and desires. Should the major necessities be covered, then there is nothing wrong in a splurge.

I'll wager the mind of the young traveller returns far better equipped to deal with the rigours of the business or educational life ahead.

atush

As I said, having taught my son the value of money he did go on holiday to spain by himself. but at least he wasn't spending it getting his ar*e tattooed with girls names he managed to pull while put getting leggless. Or returning full of STDs. He is living, and has even planned another holiday with mates next summer.

Squirreling it away and investing it is what good parents do. Telling them to live it large, is not. But I still take them on at least one foreign holiday a year, so they are still living it up.

alexanderalexander

Jake_Armitage wrote: »

....

This is a slightly different issue, but since we are working with a 20 year timescale for your investment surely you ought to be putting your money into equities as opposed to cash? With accumulated returns, this is likely to leave your child with much more money at the end.

Additionally, if you don't already have a stocks and shares ISA, you can simply open one in your own name and then cash in the funds whenever you want to gift the money to your son (this will give you absolute control over the money).

Jake_Armitage

alexanderalexander wrote: »

This is a slightly different issue, but since we are working with a 20 year timescale for your investment surely you ought to be putting your money into equities as opposed to cash? With accumulated returns, this is likely to leave your child with much more money at the end.

Additionally, if you don't already have a stocks and shares ISA, you can simply open one in your own name and then cash in the funds whenever you want to gift the money to your son (this will give you absolute control over the money).

Hello it's been a while! Re-read this thread and there is some great advice to come back to for myself and others. My main reason for shying away from stocks and shares ISA is because I don't like risk. I'm not very well educated on how much risk they involve mind.

My son is now 2 and has a very healthy amount which continues to grow. Currently it is earning a fixed rate which is still very competitive in todays cash ISA market.