Protecting child savings

chumbawumba_2

Are there any other ways to protect savings for your children, other than a child ISA. I’m at the limit for that for this year but have other money I wish to protect for them. Thanks 

eskbanker

Protection from what?  FSCS covers institution failure and income tax is unlikely to be an issue unless there's a large amount outside tax shelters or a substantial element is gifted by parents?

JGB1955

Premium Bonds?  What are you trying to protect them from?

singhini

Premium Bonds (which has already been pointed out). Or you may want to consider (in no particular order): 

Junior SIPP -----> limited to £2,880 per year (topped up to £3,600 with tax relief). However the money as you know will be locked away until age 57 (current rules).

Standard regular savings account -----> the child has their own personal tax allowance (£12,570), so interest is usually tax-free if they don’t have other income.

Trust Fund -----> Bare Trust or Discretionary Trust -----> i've not a clue (think you need solicitor? which if you do will cost money)

Gold Sovereigns -----> CGT exempt 

Classic Car -----> Buy something like a Merc 190e or BMW E30 or E46 for a couple £k (stick it in the garage and who knows in 20 years time could be worth £0,000's if its low number of owners and low mileage) 


i must stress other than the classic car, i have done none of the above (i don't have any children or any spare money) -----> i have a classic car that's draining my wallet  😂
 

kermchem

Remember that if you put money for a child into accounts that pay taxable interest over £100 and the money came from parents then HMRC will decide that the interest is the parent’s and tax them, or at least set it against parent’s Personal Savings Allowance.

chumbawumba_2

eskbanker said:

Protection from what?  FSCS covers institution failure and income tax is unlikely to be an issue unless there's a large amount outside tax shelters or a substantial element is gifted by parents?

Sorry I wasn’t clear. I meant as a protected lump sum. So it can’t be used for any other purpose or classed as an asset 

chumbawumba_2

JGB1955 said:

Premium Bonds?  What are you trying to protect them from?

Sorry I wasn’t clear. I meant protect from being classed as an asset of mine. 

eskbanker

chumbawumba_2 said:

eskbanker said:

Protection from what?  FSCS covers institution failure and income tax is unlikely to be an issue unless there's a large amount outside tax shelters or a substantial element is gifted by parents?

Sorry I wasn’t clear. I meant as a protected lump sum. So it can’t be used for any other purpose or classed as an asset 

I'm not familiar with the term "protected lump sum" other than in the context of pensions - where is it coming from, e.g. some sort of insurance payout perhaps, or something requiring a trust?

chumbawumba_2 said:

Sorry I wasn’t clear. I meant protect from being classed as an asset of mine. 

If you're simply looking to ensure that the money is recognised as being the child's (irreversibly) rather than the parent's then any children's saving account will allow this?

xylophone

Why is this protection from being regarded as a parental asset required?