Investing for my child

Jase_from_Up_North

My father passed away and left his share in a jointly owned property to my son, we currently have the property up for sale and after what little is left of the mortgage is paid off I intend to invest my half in my retirement fund and invest the rest for my son, around 20K, whats the best way to invest for say a 15 year period ?

innovate

If the property share was left to your son, I'm afraid, you don't have the right to take any of it for yourself.

Google for "my child inherited money" to find out more
https://www.google.co.uk/webhp?sourceid=chrome-instant&rlz=1C1CHFX_en-GBGB533GB533&ion=1&ie=UTF-8#hl=en&gs_rn=14&gs_ri=psy-ab&tok=1LXMnO8UGS2JFd2k8VgUug&cp=18&gs_id=eb&xhr=t&q=my+child+inherited+money&es_nrs=true&pf=p&rlz=1C1CHFX_en-GBGB533GB533&sclient=psy-ab&oq=my+chilc+inherited&gs_l=&pbx=1&bav=on.2,or.r_qf.&bvm=bv.46751780,d.d2k&fp=61fc87d788e6e96d&ion=1&biw=1456&bih=1065

xylophone

if the property share was left to your son, I'm afraid, you don't have the right to take any of it for yourself.

The OP speaks of a jointly owned property- presumably he owned it with his deceased father.

The late father left his share to his grandson presumably as an outright legacy and it is this money that will be invested for the child?

The OP will hold the money in absolute trust for his minor child until he reaches his majority. http://www.osborneclarke.co.uk/publications/services/tax/articles/the-powers-and-duties-of-bare-trustees.aspx

If the OP is capable of making the investment decisions, he could consider a selection of funds which he (and presumably the other parent) would hold in bare trust - https://www.hl.co.uk/free-guides/investing-for-children
He might consider holding an investment trust in bare trust, example here http://www.sit.co.uk/products/investing_for_children/features/how_to/

He might wish to hold some cash deposits which can also be held in bare trust. He might consider doing this through the tax free CTF/JISA.

The child has his own income tax allowance - if any of the funds pay interest rather than dividends the parent trustee(s) will be able to reclaim any overpaid tax on behalf of the child.

http://www.hmrc.gov.uk/rates/it.htm
http://www.incademy.com/courses/Unit-trusts-and-OEICs/Capital-Gains-Tax/16/1007/10002
http://www.hmrc.gov.uk/individuals/savings-income.htm

http://www.hmrc.gov.uk/taxon/ten-percent.htm

If the parent does not wish to make the decisions, he could consult an IFA? http://www.unbiased.co.uk/

Jase_from_Up_North

innovate wrote: »

If the property share was left to your son, I'm afraid, you don't have the right to take any of it for yourself.

Google for "my child inherited money" to find out more

As stated below Im the trustee for my son

xylophone wrote: »

The OP speaks of a jointly owned property- presumably he owned it with his deceased father.

The late father left his share to his grandson presumably as an outright legacy and it is this money that will be invested for the child?

The OP will hold the money in absolute trust for his minor child until he reaches his majority.

Many thx

atush

Whatever you do, with a 15 yr horizon I would suggest investing most of it (90-95% maybe) in equities rather than cash.

I like the bare trust IT route myself.

bugbyte_2

For 15 years I would go for an equal split between passive funds like the HSBC ones (HSBC FTSE 100, FTSE 250, America, Pacific, etc.), or if you don't want to balance the portfolio yourself or not confident making portfolio choices go for the vanguard lifestrategy route which a lot of people rate. Clicky.

Probably the cheapest place to buy passive funds is cavendishonline, but you cannot get the Vanguard fund on there. Vanguard is available at Hargreves Landsdown but someone more informed than me will tell you the cheapest place to invest 20K in it.




Not Advice, etc. - What would I know?