Saving for an adult child

BrokenBumper

Hi all, 
My son's child trust fund is due to mature in a couple of weeks. I'd like to set up something similar over the next 10-15 years. I don't just want to pay it into a bank account in his name and I don't want to save it in my name. Are there any options available? 

Keep_pedalling

It is now totally down to him what he does with the money all you can do is advise him. 

eskbanker

Unless he needs someone to manage his finances for him (e.g. for medical reasons justifying deputyship, power of attorney, etc), he needs to open and run such accounts himself once he's an adult - you do have that option of saving in your name instead, but there wouldn't be any other alternatives that I'm aware of, unless there's something complex and expensive with trusts set up by solicitors.

wmb194

BrokenBumper said:

Hi all, 
My son's child trust fund is due to mature in a couple of weeks. I'd like to set up something similar over the next 10-15 years. I don't just want to pay it into a bank account in his name and I don't want to save it in my name. Are there any options available? 

Unless you want to endure the pain and cost of discretionary trusts, no. 

Ch1ll1Phlakes

Once he becomes an adult any money in his name is his and he can choose what to do with it. And you said you didn't want it in your name. Unless someone can suggest something else they only thing I can really think of it sorts is the Lifetime ISA or a pension as both have access restrictions.

While I'm not knowledgeable with this, I believe you could go down the trust route however you'd probably need legal advice with regards to this and it would probably cost you to set up and maintain.

Robin9

I think we are assuming he's turned 18

eskbanker

Robin9 said:

I think we are assuming he's turned 18

OP (effectively) stated that he'll turn 18 in two weeks:

BrokenBumper said:

My son's child trust fund is due to mature in a couple of weeks

Albermarle

Ch1ll1Phlakes said:

Once he becomes an adult any money in his name is his and he can choose what to do with it. And you said you didn't want it in your name. Unless someone can suggest something else they only thing I can really think of it sorts is the Lifetime ISA or a pension as both have access restrictions.

While I'm not knowledgeable with this, I believe you could go down the trust route however you'd probably need legal advice with regards to this and it would probably cost you to set up and maintain.

You could but I doubt the amounts of money involved would justify the cost and hassle involved.
Even with a lot of money involved they are usually best avoided if possible.

kempiejon

If I recall a CTF was just a tax wrapper. There are other tax wrappers for example a SIPP, ISA, LISA all available to most every adult I think. The CTF would have held underlying investments, perhaps the same investments could also be held within one of those other wrappers or even unwrapped. Any account would have to be in the individual's name and control mind you.
A parent can contribute to a spawn's investments should they desire but the parent doesn't control the funds.
 

xylophone

Had you considered asking your son to open a LISA which you would fund?

TheBanker

BrokenBumper said:

Hi all, 
My son's child trust fund is due to mature in a couple of weeks. I'd like to set up something similar over the next 10-15 years. I don't just want to pay it into a bank account in his name and I don't want to save it in my name. Are there any options available? 

What is the reason for this? Are you concerned that your son will 'waste' the money if you put it in a bank account in his name, or are you trying to help him maximise returns on money he won't need for a long time?

Legally, it is his money so if your objective is to stop him spending it, then I think you're out of luck unless he lacks mental capacity to manage his own finances. If he does lack mental capacity then this is a different situation. 

If you're trying to help him use the money wisely, there are various savings and investment options, but they would be in his name. However you and he should think about what the money might be needed for and what other savings (if any) he has. For an 18 year old, locking money up for 10 - 15 years (so not accessible until he's at least 28) might not be wise, especially if he doesn't have other savings. Is it possible that over the coming years he will want or need to spend the money on something like a driving lessons, a car, a rental deposit etc? Even if he does lack mental capacity, locking the money up for a long time would probably not be sensible unless he has access to other money.