Child Trust Fund effects of living abroad

darbooka

With regard to the new Child Trust Fund, does anyone know what would happen if the family of a recipient child goes abroad for an unknown length of time after the account has been opened?

trafalgar_2

It's a difficult one,the fund will be fine and can be managed as if you were still here but if you are away too long ,you may lose child benefit entitlement and I believe from what I have just read ,that you need to be in receipt of CB to get child trust fund...........therefore any top-ups will only be given if you get CB and it make also effect how much you can put into the fund.

You have to inform child benefit if you are leaving the country for any lenght of time..............I think it's over 12 weeks and you may lose your benefit ,dependant on your reasons and if you intend to return

hope that helps a little

darbooka

Trafalgar many thanks - that is helpful. I see what you're saying regarding top-ops and continued contributions; however, at least regarding the initial amount would that remain secure and available if a family leaves the UK for an unkown length of time or could that be taken away as well? And, who is the actual trustee for the child's account - government, parents, bank?

trafalgar_2

No that can't be taken away once it has been given to the eligible child,

You'll find lots of great info here on how the funds are managed and by who etc

"Question..............if I have a child then go to live abroad






answer.........Your child’s CTF account will be open for them until they are 18 when they become entitled to the money in it. A further Government payment will be made about the time that the child is seven years old- your child will not get this payment unless they are resident in the UK and child benefit is in payment for them at that time. You will be able to put money into the CTF account from abroad. "



basically you will be the registered contact and you can decide to move it from one trust fund provider to another if you think it will 'perform' better there ,so you in effect manage the fund.

hope that helps

Dormouse

I've wondered about this, too. Isn't there a tax-related issue if your child is living abroad when they're old enough to get the money?

trafalgar_2

not sure on that one Dormouse ,could be worth asking the Inland Revenue that one ...........would be interesting to know.

Savvy_Sue

trafalgar wrote:

not sure on that one Dormouse ,could be worth asking the Inland Revenue that one ...........would be interesting to know.

We don't seriously think anyone's thought that far ahead, do we? Gosh, that WOULD be a first!

trafalgar_2

nah I doubt it........but it won't be long if there's a chance of grabbing it back:rolleyes:

darbooka

Dormouse wrote:

I've wondered about this, too. Isn't there a tax-related issue if your child is living abroad when they're old enough to get the money?

What could possibly be at issue in relation to tax - wouldn't it be the case that someone living abroad and thus not resident in the UK would not be liabile to pay UK tax anyway?
Maybe if the 'abroad' is in a European country and by the time the trust fund matures there will be a Eurowide continental tax and the UK will be part of that, then in such a circumstance might be a tax issue conceivably.