Advice on savings for kids future

xylophone

A JISA is a Junior Individual Savings Account.

An ISA is an Individual Savings Account.

Neither can be joint accounts.

bowlhead99

Each child gets a JISA allowance for a maximum amount of contributions per year that can sit inside a tax wrapper in their name and be invisible to the tax man. You can contribute £4k to each of their accounts a year (much more than the £50 a month you intend to use).

You can't have one ISA between them; legally it would only belong to one of them because HMRC doesn't allow you to set up their tax-privileged accounts to be shared and joint. Whoever's name it is in, can just take it out and spend when they're old enough.

But assuming you have spare space in your own ISA wrappers, you and/or your partner could put money into your own ISA investments each month, never pay any tax on it, but mentally think "x% of this is going to be gifted to child A when he's old enough to appreciate it, and y% to child B, and the rest we will keep for ourselves and spend on general family stuff". In that way, your own ISA account isn't a joint or shared account but you do know how you intend to split it out and make some nice presents in 10-20 years from now.

kinsae112

bowlhead99 wrote: »

Each child gets a JISA allowance for a maximum amount of contributions per year that can sit inside a tax wrapper in their name and be invisible to the tax man. You can contribute £4k to each of their accounts a year (much more than the £50 a month you intend to use).

You can't have one ISA between them; legally it would only belong to one of them because HMRC doesn't allow you to set up their tax-privileged accounts to be shared and joint. Whoever's name it is in, can just take it out and spend when they're old enough.

But assuming you have spare space in your own ISA wrappers, you and/or your partner could put money into your own ISA investments each month, never pay any tax on it, but mentally think "x% of this is going to be gifted to child A when he's old enough to appreciate it, and y% to child B, and the rest we will keep for ourselves and spend on general family stuff". In that way, your own ISA account isn't a joint or shared account but you do know how you intend to split it out and make some nice presents in 10-20 years from now.

Understood, thank you!