Adding Funds to my Portfolio for Children

SieIso

Hi,

I'm piggybacking on a conversation I spotted yesterday but I thought it raised an interesting point as I'm in a similar position. I wanted to setup a S&S JISA for my two kids and I'm opting for Fidelity. However, I have fears about them being silly at 18 so I'm also going to keep some money within my own Vanguard portfolio for them. I have two questions:

1. Does this process that I'm embarking on make sense? Their own individual S&S ISAs with separate funds mixed in with mine?
2. For the funds that I add to mine on behalf of the kids. How do I manage any gains they make? It seems very complicated to calculate.

Thanks in advance.

Albermarle

However, I have fears about them being silly at 18 so I'm also going to keep some money within my own Vanguard portfolio for them

You are hedging your bets, which in my opinion is usually a wise thing to do.

eskbanker

If you don't want them to have automatic access at 18 then keeping the investments in your own name is the only realistic option, but I'm not seeing the process of 'managing the gains' as involving 'very complicated' calculations - surely it's not difficult to record the unit price for each acquisition and then eventual sale, as this is the process everyone has to use for unwrapped investments for CGT purposes?

SieIso

eskbanker said:

If you don't want them to have automatic access at 18 then keeping the investments in your own name is the only realistic option, but I'm not seeing the process of 'managing the gains' as involving 'very complicated' calculations - surely it's not difficult to record the unit price for each acquisition and then eventual sale, as this is the process everyone has to use for unwrapped investments for CGT purposes?

Unwrapped in an ISA?

DiamondLil

I have investment accounts for my grandchildren. Each account is designated to a particular child. I drip money into these as and when, and I'm liable for the taxes on any gains which is fine with me. Simple to manage and easy to set up.

eskbanker

SieIso said:

eskbanker said:

If you don't want them to have automatic access at 18 then keeping the investments in your own name is the only realistic option, but I'm not seeing the process of 'managing the gains' as involving 'very complicated' calculations - surely it's not difficult to record the unit price for each acquisition and then eventual sale, as this is the process everyone has to use for unwrapped investments for CGT purposes?

Unwrapped in an ISA?

No, the process you'd need to use for this purpose is essentially the same as that used (for a different purpose) outside the ISA.

SieIso

DiamondLil said:

I have investment accounts for my grandchildren. Each account is designated to a particular child. I drip money into these as and when, and I'm liable for the taxes on any gains which is fine with me. Simple to manage and easy to set up.

Are these outside of ISAs?

wmb194

SieIso said:

DiamondLil said:

I have investment accounts for my grandchildren. Each account is designated to a particular child. I drip money into these as and when, and I'm liable for the taxes on any gains which is fine with me. Simple to manage and easy to set up.

Are these outside of ISAs?

They must be or else reference wouldn't have been made to being liable to tax.

DiamondLil

SieIso said:

DiamondLil said:

I have investment accounts for my grandchildren. Each account is designated to a particular child. I drip money into these as and when, and I'm liable for the taxes on any gains which is fine with me. Simple to manage and easy to set up.

Are these outside of ISAs?

Yes, simple general investment accounts outside of ISAs. Keeps things simple (I also have ISAs in my name).