Do u save for your kids?

Kayalana99

Thats not strictly true...most childrens accounts once they turn 18 you lose the trustee right to access them...and it becomes thiers 100%. TBH I looked into this a few months back and couldn't find any that didn't do this unfortunatly but its not to say they don't exist! I would say you could just not tell them untill they are ready as well but most banks send a letter to both trustee and child saying it is now thiers.

Thing is, this is my problem as well if I put it in thier name then they will get it when thier 18 so for now its in an account in my name but if I don't obvouisly I will have to pay tax on the interest and some childrens savers accounts are better interest..

I'll probally do something more with it later on when thiers more in them!

bizzybee

Been saving £25pm in Invesco Perpetual High Income Fund for the past 15 years and accordingly to statement that arrived yesterday it's worth £9,569.

Not sure what I would have if I'd paid it into a bank account.

sweaty_betty

Kayalana99 wrote: »

Thats not strictly true...most childrens accounts once they turn 18 you lose the trustee right to access them...and it becomes thiers 100%. TBH I looked into this a few months back and couldn't find any that didn't do this unfortunatly but its not to say they don't exist! I would say you could just not tell them untill they are ready as well but most banks send a letter to both trustee and child saying it is now thiers.

Thing is, this is my problem as well if I put it in thier name then they will get it when thier 18 so for now its in an account in my name but if I don't obvouisly I will have to pay tax on the interest and some childrens savers accounts are better interest..

I'll probally do something more with it later on when thiers more in them!

Might be worth checking as I'm sure I read something to say that parent/guardian names are taken off children's accounts when they turn 16, so might have free access to the cash then.

It could be that you keep paying into children's account(s) until they're 15 and then switch the money into your account so they don't get access to it. Sounds a bit tight, but I would imagine this is legal so it would allow you to control it for longer.

Kayalana99

It did cross my mind but if you have alot of money in a trust for a child then take it out..you can get done for avoiding tax. -__- It could probally still be done though lol

Rummer

We have a two different types of saving related to our DD. One is a child trust that will be exclusively hers when she turns 18. I had wanted to put all the savings we planned for her into that but as my OH sensibly pointed out she could blow it all on a massive holiday at 18 and then be left with nothing. So we have also set up a separate account in our own names that will be a back up fund for uni etc.

stormbreaker

I am still named on my sons account and he is 18. We only just moved his money into an ISA and I thought we had closed the account but I recently got a letter addressed to me but him to, to say about the interest in it.

I had moved my sons accounts to get a better interest and I think my eldest was around 8. As a result the account was solely in his name which I disagreed with at the time but could do nothing. I kept the book but was appauled when the bank wrote to him around the age of 12(just as he was going to high school) and offered to change his account and give him a cash card.
So my advice would be to open a childs account early so you can be trustee. You normally get better interest and as has been said no tax.

nikki2804

I have a trustee account for my son (almost 4) and pay £20p/m into it. I am due a second baby in September and will probably save the same amount. I will reassess the situation and see if i can save anymore. I would be happy to have £5000 for each of them when they reach 18, not a lot of cash but its better than nothing!

emma-uk

Only £10pm with Xmas & Bday money topping it up into a bank savings account for kids. If we could afford more I'd save more and will move his CTF into a JISA soon with an investment provider.

My parents never saved for me and I never expected them to.

meanmarie

I have been saving for each of my five grandchildren since they were born and 12 year old now has almost €6000 in his credit union account....intend to save for them until they are at least 18 provided that I am around until then! I didn't save for my own children as we were very skint when they were small but managed to educate them all to degree level and give them a small amount to help furnish their houses when they bought them...whatever we leave in our estate will be divided equally between them so happy enough that we have provided well for them, have always told them that their education was their inheritance, so they don't expect anything.

Marie

lowlitmemory

Kayalana99 wrote: »

Thats not strictly true...most childrens accounts once they turn 18 you lose the trustee right to access them...and it becomes thiers 100%. TBH I looked into this a few months back and couldn't find any that didn't do this unfortunatly but its not to say they don't exist!

There is, we have a child savings account with Lloyds and they write to you just before the child's 16th birthday and at that point you can either choose to leave it all in their name, or transfer it into your own account. We will be transferring it into our own account. We'll be trying to save bits of money for him here with a view to giving it to him when he needs it e.g. when he gets married or wants to buy a house or have a baby.

We have also set up a junior ISA for him, which will become his when he turns 18 (or possibly 16, can't remember) and in it we are putting all the 'gift' money he gets from his birth/birthdays/Christmas etc from friends and relatives. As this money is gifts to him, we feel it should morally be given to him at the age of majority and it's not up to us to withhold it.