childrens saving help

smelly1973

Our son has just been given 20k from his grandad(passed away)..
Hubby and I don't want him to access it until he turns 21.Ten years time.we don't want access to it either.
we have no idea what to do with it. when we have looked on-line, it just seams to be isa's..

Any help would be greatly recieved
thanks

justme111

If you do search on this forum for children investment trust you will find useful info.

theoretica

Your son will have the right to manage his own money at 18 unless the will said differently.

xylophone

If the money is an absolute and unconditional gift to your son and the only reason he cannot have immediate access is that he is too young to give a valid receipt for the gift, then you will hold it for him in bare trustuntil he reaches the age of 18 (16 in Scotland) when he will have an absolute right to access to income and capital.

The money can be put into a child account (see here for example http://bank.virginmoney.com/savings/find/results/childrens-accounts/new/) - assuming that the child is not a tax payer you may complete an R85 on his behalf until he is 16 - after that the R85 would have to be rescinded and any overpaid tax reclaimed by you on R40 until he reached the age of 18.

You could also hold fixed term accounts in bare trust assuming the Bank/Building Society was content for you so to do.

If there is at least ten years until your child reaches his majority, you might wish to consider stock market investment in bare trust- you could use an OEIC or an investment trust - example and explanation of why bare trust is important here http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/
http://www.trustnet.com/Education/SaveChild.aspx?ms=6

http://search.hl.co.uk/search?section=content&module=hlsearch&__qin=&q=bare+trusts+for+children&site=hl_group&client=hl_group&proxystylesheet=hl_group&filter=0&numgm=2 might be worth a look.

smelly1973

Sorry not replied , been one of those weeks......
thank you for the replies.
It has given us lots to think about.
thank you for the links .Will be looking through them this evening.
many thanks