Investing for Nieces and Nephews

FunnyFakingSexDirt

I have decided to give my 4 nieces and nephews £500 each to be put in savings until they are old enough to put it towards something they really want.


After some recent research about where to put my own money, I would like to use a mid risk Vanguard Life Strategy or an L & G multi index fund for their savings.


Can this be done using a Junior S&S ISA or will I have to arrange for my sister and brother to open one in their names? e.g. on iWeb.


Thanks

bowlhead99

You can't open a JISA for yourself because you're not a junior and you can't open one for them because you're not their parent or guardian.

Your siblings can open a JISA for each of their kids and you can put the money into it. The kids could not access them until age 18.

Or they can open one in their own names (i.e. your brother and sister) and you can give them the cash. As people can only contribute to 1 S&S ISA in a tax year, they may not be able to open one up this year if they already have one for themselves. But if they did, you could just give them £500 to top up their own ISA and hope they remembered which £500 was owed to which child.

If your brother and sister do have S&S ISAs already with spare capacity this year, that might be more efficient (in terms of charges) than creating whole new JISAs, particularly if the kids will want to take the money out before age of 18.

FunnyFakingSexDirt

OK Thanks, is there Junior ISAs I can recommend to my Brother and Sister to use that would allow me to choose one of the two mentioned funds?

xylophone

Do the children already have CTFs (born between 1 Sept 2002 and 2 Jan 2011)?

https://www.gov.uk/child-trust-funds/overview

These should be transferable to the more flexible JISA from later this year.

If a free choice of investment is required, choose a self select JISA- compare platform charges.

laidbackgjr

Personally I would either keep the money and invest it myself and then give the money when the niblings are older, or just give cash and leave the parents to invest. In our extended family there was a lot of anguish caused by giving money only if it's invested in a certain way. If the investment you suggest turns out to be a bad one and the £500 ends up being worth very little could your family relationships cope?

FunnyFakingSexDirt

@xylophone: I'm not sure if they have CTFs but the aim is to keep my money separate from savings from their parents, so when they are old enough to spend it, they know where it's came from, and it isn't just chucked in with the rest, so to speak.


@laidbackgjr We have decided a bit of risk is fine, and they are more than happy for me to choose a fund or two for the money. Making a loss on the money isn't ideal, but if it happens, it happens. My siblings and I are close, this wouldn't get in the way of our relationship. They appreciate the gesture.


I have tried searching for a suitable Self Select Junior ISA for the lump deposit of £500, that would allow me to choose one or both of the funds mentioned, but had no joy. Could anyone point me in the right direction please?

xylophone

If the children were born between the dates referred to above they cannot have a JISA at the moment as they are eligible for CTF - the CTF will be transferable to JISA in due course.

You can only contribute to CTF/JISA, you cannot open one for children not your own unless you are their guardian.

If you want to invest for your nieces and nephews outside the CTF/JISA, a bare trust for a child can be opened with the likes of Hargreaves Lansdown - you and a parent could be the Trustees.

Otherwise you might consider opening an investment trust savings plan held in bare trust for each child.

Example
http://www.bailliegifford.com/individual-investor/how-to-invest/investing-for-children.aspx

http://www.bgchildsavings.com/pages/how_to_invest.aspx

Vortigern

FunnyFakingSexDirt wrote: »

I have tried searching for a suitable Self Select Junior ISA for the lump deposit of £500, that would allow me to choose one or both of the funds mentioned, but had no joy. Could anyone point me in the right direction please?

Charles Stanley Direct, Fidelity Funds Network, Cavendish Online, all have JISAs, Vanguard LS, and L&G Multi Index. HL has JISAs and VLS.

chewmylegoff

FunnyFakingSexDirt wrote: »

@xylophone: I'm not sure if they have CTFs but the aim is to keep my money separate from savings from their parents, so when they are old enough to spend it, they know where it's came from, and it isn't just chucked in with the rest, so to speak.


@laidbackgjr We have decided a bit of risk is fine, and they are more than happy for me to choose a fund or two for the money. Making a loss on the money isn't ideal, but if it happens, it happens. My siblings and I are close, this wouldn't get in the way of our relationship. They appreciate the gesture.


I have tried searching for a suitable Self Select Junior ISA for the lump deposit of £500, that would allow me to choose one or both of the funds mentioned, but had no joy. Could anyone point me in the right direction please?

My sister has opened a JISA for my niece and I funded it and asked her to invest it in two index trackers which she was happy to do. Did it through HL but I expect there are cheaper options out there...

FunnyFakingSexDirt

Vortigern wrote: »

Charles Stanley Direct, Fidelity Funds Network, Cavendish Online, all have JISAs, Vanguard LS, and L&G Multi Index. HL has JISAs and VLS.

Perfect, thank you so much.