Investment account for new born baby - No access until 21/25 (preferably 25)

The_Real_Cheddar_Bob

I'm happy to invest in a fund. 

What I have learnt from this thread so far is, it is possible to open an investment account but funds are available at 18. It is possible to invest in a pension but its quite a time longer than id want him to access the money.

Self investing and gifting the money gives me the control, but is my least preferred option as i'd want him to be able to plan and look forward to a helping hand, should he need one. 

What about a trust fund? 

DiamondLil

I have six investment accounts with Charles Stanley. Each account is designated to one of my six grandchildren. These are straightforward investment accounts, so all tax is paid by myself.

This way I can choose when to give them the funds.

My will has instructions as to what I wish to happen to the accounts if I die before I've gifted the money.

Albermarle

What about a trust fund? 

Not a simple option and potentially costly . Would seem an OTT solution .

Nurse2047

Could you not split money between JISA, Premium bonds and Junior Sipp?

DireEmblem

IMO, you want to pick an investment that you dont have to micromanage.  Keep it in your own name, and then you can choose the appropriate time to pass it to them, be it 25, or possibly earlier if they are going to put it to good use - buying a house, etc.

I would say to just pick a cheap global equity tracker, and have it in your own name.  VWRP or ACWI are cheap all world equity trackers.

If you dont think you will fill up your ISA, then great use that and all the gains will be tax free when you pass them on.

For myself, I remember having next to no money up until after I graduated, and decided to 'enjoy my freedom in my 20s' as many others did.  The down side to that, being I didnt really save much until later for a house deposit, which would impact the next 50-60 years of my life (but I had a good time anyway).  

I probably spent an average of £400 a month on rent over 10-12 years, so you're talking 50-60k I won't see again.  Thats a good chunk of a mortgage, as I remember a 1 bed in the centre of town was around 110k back in say 2007.

Keep_pedalling

DiamondLil said:

I have six investment accounts with Charles Stanley. Each account is designated to one of my six grandchildren. These are straightforward investment accounts, so all tax is paid by myself.

This way I can choose when to give them the funds.

My will has instructions as to what I wish to happen to the accounts if I die before I've gifted the money.

In the event of your early demise what you wish to happen to the money and what your GC will be legally entitled to are likely to be very different things. Wishes in wills are not enforceable. 

We have funded JISAs for our GC and are happy for them to do as they wish with it when they reach 18. 40% of it would probable end up being waisted on IHT if we keep hold of it. 

AnotherJoe

The_Real_Cheddar_Bob said:

I'm happy to invest in a fund. 

What I have learnt from this thread so far is, it is possible to open an investment account but funds are available at 18. It is possible to invest in a pension but its quite a time longer than id want him to access the money.

Self investing and gifting the money gives me the control, but is my least preferred option as i'd want him to be able to plan and look forward to a helping hand, should he need one. 

What about a trust fund? 

Maybe I'm missing something, why cant he do all that in knowledge of the fund you are building for him?

You could also have a smaller JISA for him which he does have control over when he's 18 and see what he does with that as a guide to when he gets the rest of the money which you may or may not have told him about.

AnotherJoe

Keep_pedalling said:

DiamondLil said:

I have six investment accounts with Charles Stanley. Each account is designated to one of my six grandchildren. These are straightforward investment accounts, so all tax is paid by myself.

This way I can choose when to give them the funds.

My will has instructions as to what I wish to happen to the accounts if I die before I've gifted the money.

In the event of your early demise what you wish to happen to the money and what your GC will be legally entitled to are likely to be very different things. Wishes in wills are not enforceable. 

We have funded JISAs for our GC and are happy for them to do as they wish with it when they reach 18. 40% of it would probable end up being waisted on IHT if we keep hold of it. 

That  seems like an overly strict interpretation of what DL said,  perhaps drawing too liberally on the use of the word "wish"?

If the will says GC1 gets investment account 1, GC 2 investment account 2, are you saying that wont happen?Or do you believe their will literally uses the word "wish" ?

Sea_Shell

AnotherJoe said:

Keep_pedalling said:

DiamondLil said:

I have six investment accounts with Charles Stanley. Each account is designated to one of my six grandchildren. These are straightforward investment accounts, so all tax is paid by myself.

This way I can choose when to give them the funds.

My will has instructions as to what I wish to happen to the accounts if I die before I've gifted the money.

In the event of your early demise what you wish to happen to the money and what your GC will be legally entitled to are likely to be very different things. Wishes in wills are not enforceable. 

We have funded JISAs for our GC and are happy for them to do as they wish with it when they reach 18. 40% of it would probable end up being waisted on IHT if we keep hold of it. 

That  seems like an overly strict interpretation of what DL said,  perhaps drawing too liberally on the use of the word "wish"?

If the will says GC1 gets investment account 1, GC 2 investment account 2, are you saying that wont happen?Or do you believe their will literally uses the word "wish" ?

Specifying an account each is great, right up until the point that you change platforms or account number and don't update your will!!!

Keep_pedalling

AnotherJoe said:

Keep_pedalling said:

DiamondLil said:

I have six investment accounts with Charles Stanley. Each account is designated to one of my six grandchildren. These are straightforward investment accounts, so all tax is paid by myself.

This way I can choose when to give them the funds.

My will has instructions as to what I wish to happen to the accounts if I die before I've gifted the money.

In the event of your early demise what you wish to happen to the money and what your GC will be legally entitled to are likely to be very different things. Wishes in wills are not enforceable. 

We have funded JISAs for our GC and are happy for them to do as they wish with it when they reach 18. 40% of it would probable end up being waisted on IHT if we keep hold of it. 

That  seems like an overly strict interpretation of what DL said,  perhaps drawing too liberally on the use of the word "wish"?

If the will says GC1 gets investment account 1, GC 2 investment account 2, are you saying that wont happen?Or do you believe their will literally uses the word "wish" ?

No I am not saying they will not get it quite the opposite. If the will makes a bequest to each GC of each of those accounts, then they will be entitled to receive it when they reach 18 (16 in Scotland) regardless of any wishes that they don’t get control until 21 / 25.

If you really want more control beyond the grave then you are going to have to go down the discretionary trust route, but most don’t because they are a pain to manage and are subject to some pretty hefty taxation.