help needed on where to put kids savings

leasandy

i have 3 kids aged 14/12/8 we have just lost my husbands dad and going to receive money from the sale of his flat would like to invest atleast 10k for each child but dont know which is the best way to do this for them any advice would really help me plz

xylophone

You can invest as bare trustee for each of your children in cash/shares/OEICS/investment trusts etc. However, be careful re tax treatment if the money is willed to you/your spouse rather than direct to the children ie, if you are making the children a gift out of your inheritance. You might want to make use of CTF/JISA where the "£100 rule" does not apply?

It might be that a Deed of Variation would be appropriate?
http://www.hmrc.gov.uk/tdsi/children.htm
http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm - remember to use current allowances.
http://www.hmrc.gov.uk/individuals/savings-income.htm
http://www.investmentguide.co.uk/sg-tex11.htm
https://docs.google.com/viewer?a=v&q=cache:b2yQlT9l7UoJ:www.theaic.co.uk/Documents/Factsheets/AICChildrensFactsheet.pdf+holding+shares+on+behalf+of+a+child&hl=en&gl=uk&pid=bl&srcid=ADGEESi5-cK2jv4pVy6Bz8WYDqPVLW1rmHVCGjWwztkrn0vofa06YR8G1npKDXSxwXjFN4mDmUXm1L6EGqP-37qjJ866rsf27P6J64BG_MmZqsJp2lUPcmCzLR_KioVARFhY88xyv33w&sig=AHIEtbQf2qulbTpAxpcE_OSaqojMAfXUOA
http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/

leasandy

thanks for taking your time to help me going to have to look into your links carefully it would be a gift as money was left to my hubby so need to look very cafefully on whats best for them i dont know much about savings but will learn

Totton

I'd select 2 or 3 investment trusts and think long-term with the likes of Law Debenture, Murray International, Scottish Oriental Smaller Companies etc. The age of the children being what it is you may want them to have the money sooner so thinking cautious I would look at Personal Assets, Capital Gearing or possibly RIT Capital Partners which is now on a discount.

Another good defensive fund worth a look is Worldwide Healthcare but there are quite a few to choose from.

HTH,
Mickey