Child Investment plan & CTF (F&C)

stue

Hi all,

I am seriously considering the F&C CTF share account because of the low charges.

I am also considering the Child Investment plan by F&C for my other child, who is not eligible for the CTF.

My question is can anyone point me to information about the pros and cons of a Bare Trust and a designated plan?

Milarky

stue,
This might help address your question:

From F&C:

http://www.fandc.com/uploadfiles/uk_re_it_fc_ctfbaretrustform.pdf

"Why might I need to set up a trust?
Where an investment has been made
solely for the intended benefit of a child
and no trust arrangement is set up, it may
be difficult (for others) to distinguish these
assets from the personal or other property
of the legal owner. (It is common practice
not to allow a child to be the legal owner
of shares until he/she reaches 18 years of
age (16 in Scotland)). This is likely to lead
to two consequences. First, in the absence
of any strong evidence that a trust exists,
the Inland Revenue will regard the
investment as belonging to the legal owner,
who will be taxed on any returns or gains
from it. The second is that, in the event of
the legal owner’s death, the investment will
form part of his or her estate and so may
not directly, or possibly even never, reach
its intended recipient, the child."

More information and links here:

F&C offers a lot of excellent and clearly written information on the options for parents with children who both qualify for CTF payments and those who do not qualify.

In general they also communicate with investors very well in an unashamedly non-technical fashion.

Hope that helps

stue

Thanks for this.

I am ploughing my way through the F&C material.

I was just wondering if there was any other decent material designated plans and bare trusts.

Or if anyone had made thes decision and why.

Stu