Adding Funds to my Portfolio for Children

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.


Comments

  • Albermarle
    Albermarle Posts: 21,006
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    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
    eskbanker Posts: 29,776
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    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
    SieIso Posts: 132
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    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?
  • 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
    eskbanker Posts: 29,776
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    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
    SieIso Posts: 132
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    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
    wmb194 Posts: 3,092
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    SieIso 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.
  • SieIso 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).
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