Can Bare Trust savings be transferred to different providers?

IanSt

nw2425 wrote: »

Thanks IanSt for your reply.
...
As with one of the other respondents, you now have me thinking about whether there would be any benefit to using a Bare trust rather than just keepign the funds in our names. Woul dyou know?

Tax is a potential reason for using a bare trust - but I'd advise using an ISA (especially if you do go down the investment route) so apart from IHT those issues would hopefully go away.

And if you feel it necessary then you can put the details in your wills so that there are no issues with who the money is earmarked for.

The main positive of keeping it in your own name is that you can evenly divide out the total money saved with all your grandchildren at a time that you feel is suitable - my mother-in-law put money into bare trusts for the grandchildren and there ended up being a 50% difference in the amounts paid out between highest and lowest simply because of the relative positions of where the stock market was when the money was put in and taken out.

She wasn't happy to feel that she was discriminating between the grandchildren but unfortunately she did not have the spare money to make up the differences - DW and myself made up the difference ourselves for our children, but DW's brother didn't for his 3.

cloud_dog

nw2425 wrote: »

Thanks cloud_dog for the reply.


We had considered a JISA but his parents have already opened one for him and I believe there is a linit of one per child (and we want our funds kept separate).


I think you may still have answered my intended question with your explanation about opening and closing accounts - we would want to be able to do this to move the funds around for the best return.


You've also got me thinking about whether there is any benefit to using a Bare trust rather than just keeping the funds in our name as you suggest. Do you know of any benefits to make a Bare trust worthwile As we are only talking about £500 a year I don't think there'll be any real tax implications.

Hi

The benefits of a bare trust (as mention above) are tax related but also there is clarity of your intentions should the worst happen.

I would echo the sentiments already mentioned about considering investing rather than saving over such a period of time but recognise it is a personal choice. Or perhaps you could do a bit of both, or save for investment early on and then switch to some savings as they approach 18.

Another thing to bare in mind is do you know how many GC you will end up with, will you have the ability to treat them all equally?

As an example, I did something for my nephew, became nephews, whereby I utilised one of the Investment Trust companies regular investment schemes (I used Balliae Gifford; unfortunately they no longer offer this) in my name. It is documented with my family that this investment is intended for the nephews at 18 with a target amount/shares for each. It is not excluded from my estate or tax considerations but I manage that. An alternative would be to use my ISA account and simply note that investment X is for the nephews.

This gives me complete freedom to transfer or manage appropriately. Bare in mind that each time you open an account in a minors name you are likely to need to present evidence of identity, birth certificate etc.