Saving for a child in your name

Tom99

[FONT=Verdana, sans-serif]Depending on your age and if you have scope, you could open a SIPP in one of your names with your daughter listed as beneficiary.[/FONT]
[FONT=Verdana, sans-serif]That would immediately be outside the scope of IHT and if you are over 55 when your daughter reaches 18 could be cashed in to give her the money.[/FONT]

Wildsound

AnotherJoe wrote: »

Yes you make a good point about life events but that works two ways, you might decide that the wife needs the money more than the child and having it locked up in a trust so the wife cant get, lets say the cure for Alz* because its £250k and thats inaccessible would be a bad outcome.

* or more mundanely, 2 hip operations rather than waiting 5 years on the NHS

As far as I am aware, you could just have the wife as one of the beneficiaries of the trust (if you're setting up a discretionary trust) if that was a legitimate concern.

Terry_Towelling

AnotherJoe wrote: »

Yes you make a good point about life events but that works two ways, you might decide that the wife needs the money more than the child and having it locked up in a trust so the wife cant get, lets say the cure for Alz* because its £250k and thats inaccessible would be a bad outcome.

* or more mundanely, 2 hip operations rather than waiting 5 years on the NHS

I've thought about the pros and cons of the life-events argument which is why I personally wouldn't go down the Trust route (although another post makes the point that you can include other people in it). As for the amount locked up I'm afraid I hadn't thought about amounts anywhere near those you postulate. We might just have that much in our house value but savings for a grandchild/child could never amount to even a few percent of that. We must move in very different circles.

As for a cure for dementia (including Alzheimer's disease) - fat chance! - and if it were to cost £250K, I'd have to sell the house and pay it but things don't work that way - and we'd have nowhere to live afterwards - and let's face it, stopping brain atrophy is one thing, rebuilding the brain afterwards and reacquiring all of those lost skills is quite another.

But I digress - I simply gave a view and that's all there is to it. Good luck with the new hips - I presume that's why you mentioned that example.:)