Child's inheritance and tax implications

Alexland

I would also suggest looking at consolidating the inheritance and CTF into the Vanguard Junior ISA but rather than the Life Strategy 80 fund (which is a static 80% stocks and 20% bonds so quite volatile) then I would suggest looking at the Target Retirement 2025 fund which will gradually reduce the stocks exposure from around 65% now (it would have started over 80% if you had a longer time horizon) down to around 40% by the time they are 18 in circa 2028. This reduces the impact of a market crash shortly before the money may be withdrawn. If you get the feeling the money will be invested for longer (eg not for uni but to help buy a house in their mid 20s) or you want to take a bit more risk then you could always go for the 2030 or 2035 fund.

Alternatively stick the money in Orbis Access with the Balanced fund and they will charge no fees on investments made in the first 12 months (including a transfer in of the CTF) until the child is 18. I am doing this until my toddler son is around 10 and then I might move to Vanguard TR for the reduced volatility in the outer 8 years.

Tiesome

This is interesting. Do the same rules apply if the bequest comes from the USA from a US citizens will?

Keep_pedalling

Tiesome wrote: »

This is interesting. Do the same rules apply if the bequest comes from the USA from a US citizens will?

That is an interesting question, but you should really start a new thread rather than piggyback it on to an old one.