child trust fund

GT60

Hi i have been told to get a trust fund so i can put all thechildren’s money in one place then when they are 21 they get a cut of what’s inthe fund. .
The children are 6, 14, 16 and 17.
E.G.> first one gets 25% of the fund then the next gets33% and the next gets 50% and the last one gets the balance,
Can anyone recommend a fund please it has to be one that ichose when and how much i put in.
E.G. One week £10 then say the next month £25 and so on wheneveri have some spare cash i just put it in the fund.
Thanks

Reaper

The closest to what you are describing is a Discretionary Trust. You will have to get a lawyer involved and that will cost you. I don't really recommend it for the sums of money you are talking about.

How about separate investments for each of the kids, or even use your own S&S ISA allowance (if any is left) and gift it when you want. Some slight inheritance issues to consider if you go that route but it is the easiest and cheapest option.

GT60

Thanks for that

atush

And the 16 and 17 yr old can have isas themsleves. But if you dont' want them to spend it in a year, better fix the rate as the money will be 'theirs'.

With younger children who have longer to go before getting the money I prefer saving into Equities. I use investment trusts myself.

k12479

That sounds pretty unfair, particularly to the eldest who may do particularly poorly out of it, while the youngest one could do quite well. If the eldest turns 21 and receives an amount and then the following year the next one receives more due to an an additional year of accrued cash/investments it could cause sibling resentment.

Perhaps concentrate on building something up for the 16 & 17 year olds first, followed by the 14 year old and worry about the 6 year later.

atush

there is nothing stopping the OP from saving additonal moneis for the eldest. But an inheritance is just that really. And as they will get their hands on the money before younger siblings, that could cause resentment as well.

I personally don't base any investment decisions over any resentment possibilities beyond making sure that I invest the same initially for each child.