child trust fund / ISA

xylophone

I noticed on one of the links you can either have ISA/or child trust fund. My son had a child trust fund set up by the government, would it be better to continue to pay into this or transfer to a child ISA?

If your child has a CTF it is possible to transfer to JISA - it can offer more flexibility and can offer a "double bite at the cherry".

https://www.skintedmintedmum.co.uk/minted-blog/how-to-transfer-a-child-trust-fund-ctf-to-jisa-with-a-double-scoop-of-tax-allowance.html

https://www.gov.uk/government/publications/isa-manager-bulletin-65/guidance-transfer-of-a-child-trust-fund-to-a-junior-isa

iammumtoone

IanManc wrote: »

is for you to sit down with your son and try to have a really serious talk with him about the money, what you hope he'll do with it and what he could achieve with it, and how sad you'd be if he wasted it, and perhaps offer to carry on managing it with him.

I think you are right this is the only way I will wait until he is nearly 18 to have this chat and just hope for the best.

atush

I agree, not telling about it (and looking for post from t he provider or going to lemail only) could work.

If you forget about the tax thing (my children were too old for Jisas) you can open an isa in your name you use for this and you have control, or in my case I opened an investment trust savings plan (you can isa or keep unwrapped). In my name, but designated to t he child in question. This saves no tax, but can be helpful to your spouse/executor if you die as these sums are clearly for their benefit- but if not mentionned in a will could be included in your general estate for distribution. So mention it to them or put them in your will.

I used them to pay all living expenses for the children while they went to university (incl travel home and books etc). In 2 cases, there was a small sum left which I gave to them on graduation (the 3rd went to law school so used all of his).

stoozie1

Why can't you keep it in your name as atush and I both suggested?

IanManc

stoozie1 wrote: »

Why can't you keep it in your name as atush and I both suggested?

Because the money is currently in a Child trust Fund in the child's name which doesn't allow withdrawals until the child is 18, and as soon as he is 18 he is the only person who can withdraw money.

iammumtoone

stoozie1 wrote: »

Why can't you keep it in your name as atush and I both suggested?

One so it is secured as his money there will be no option for me to touch it even in emergencies.

The other as I am a single parent so only one wage if I ever lose my job and can't find another if I need to claim any income based benefits I would be expected to spend it/it would effect my entitlement. I hope this will never happen but its better to plan for the worse.

iammumtoone

IanManc wrote: »

Because the money is currently in a Child trust Fund in the child's name which doesn't allow withdrawals until the child is 18, and as soon as he is 18 he is the only person who can withdraw money.

The only money that is currently in the child trust fund is the £250 what the government gave him. Its not used I just read that he can't have that and an ISA.

xylophone

Its not used I just read that he can't have that and an ISA.

He cannot have a CTF and a JISA.