Child Investment Plans

cloud_dog

xylophone wrote: »

The OP might want to save until university age but not allow the child unfettered access to the money? His intentions/understanding of savings/investments/saving for child/on behalf of child/in child's name (or not) tax treatment etc do not seem wholly clear?

xylophone, there are lots of reasons why someone may / may not want to do something.

Your original response to me and your subsequent follow up are merely supposition.

I'll refer you back to some words in my original post "...from the little info you've put...", and this is why I asked the not so unreasonable question 'Why?' in the hope that the OP would come back with more info which may help clarify the most appropriate options rather than spouting lots of options.

As I've commented on numerous times consideration on 'control' of the money is the very first thing someone needs to consider and decide upon, the vehicle/product comes after.

xylophone

Your original response to me and your subsequent follow up are merely supposition.

Hang on a mo!

I'm not picking an argument here! When the OP said

Don't want a Junior ISA.

my answer was addressed to him?

And in my answer to you I think I was merely suggesting one possible reason for the OP's comments?

Is suggestion/supposition no longer allowed?

No need for "knickers in a twist"?:)

rmad24

Reason being I would like full control of the money and the have the ability to remove funds (if required to do so for the child).

The question was asked to see what other investment ideas people may have other than the JISA, in case I have missed something or a alternative suggestion is offered.

Thanks again for posting.

cloud_dog

rmad24 wrote: »

Reason being I would like full control of the money and the have the ability to remove funds (if required to do so for the child).

In which case an investment in your name (inside / outside ISA) or a discretionary/designated trust (possibly).

See here for IR treatment of income / capital of different trust.

A designated trust might be what you are looking for where the 'deed of trust' covers what / how the income capital can be used but I think the capital is deemed to given to the beneficiary at some point. Although as I said it depends on the deed that creates the trust.

It depends on how complicated you want to make and if there are other options, for example if you / your partner:

* don't use your own ISA allowance each year; you could utilise some of this
* one / both are lower rate tax payers; use your own basic investment account.

Alternatively as you are talking about £100 - £200 per month you could split it (however you want), i.e. £50 in to a trust in the childs name the remainder in your / your partner name / ISA account etc.

You could set up simple bare trust with staggered finish dates, although in England these usually run until 18; but different institutions can allow them to 21 (or 25 in rare instances).

EDIT: As an example... for our DD she has:
1) A savings account. Simple bare trust which she knows nothing of as yet and we deposit £50 pm in to that plus gifts for her
2) A Halifax savings account with a cash card which she puts money she earns (we don't do 'pocket money') in to and we add a simple £10pm
3) A CTF (pre-runner to JISA) which had a lump sum added initially and receives £50pm (this will stop at some point when we feel it is 'big enough' for an 18yo).
4) An investment account in OH name (basic rate tax payer) which we put in £150pm split across 3 funds. Both myself and OH know this money is for our DD. What, we don't know but it will be used to assist her.

cloud_dog

xylophone wrote: »

No need for "knickers in a twist"?:)

My nickers are certainly not twisted.... unlike the rest of me.

We merely needed fuller, confirmed, info from the OP to offer options.