Child Investment Question -

jrc123

hi Forum

Quick question if anyone can advise:

I bought Vanguard S&P500 etf with Trading 212 in my name so my new born can have some savings when they are older.

What is the best way to get this now trasnfer in their name? or any ideas?

I dont want an JISA as that locks it away until they are 18, i still want access incase.

thanks for any ideas

Keep_pedalling

In case of what?

Nurse2047

the only way to have in their name is a JISA however you will give access to 18, if you want access post 18 keep in your name then give to them.

wmb194

https://forums.moneysavingexpert.com/discussion/6669207/child-investment-question

AJ Bell offers a non-Jisa Children’s brokerage account.

"…our Dealing account for children – also known as a ‘Bare trust’ dealing account. The parent or grandparent opening the account will be the trustee, with access available to the child once they turn 18."

https://www.ajbell.co.uk/dealing-account/children

Reaper

https://forums.moneysavingexpert.com/discussion/comment/82006519#Comment_82006519

No, a Bare Trust would do the trick. You can make withdrawals from it provided the money is used for the benefit of the child. They would still get access at 18.

However note the Bare Trust is taxable unlike a JISA. In practice that is not usually a problem as the child gets the full adult tax allowances. Keep an eye on capital gains though.

Also remember when the trust is set up the money belongs to the child from that point on. You cannot change your mind later on and decide to take the money back.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82006910#Comment_82006910

I would add that the formalised bare trust format would need to make specific provision for monies to be accessed and utilised on the child's behalf prior to age 18 vesting age.

I have pointed out in a couple of other threads that A J Bell's bare trust makes no such provision ( it is extremely limited) , whilst Hargreaves Lansdown's version is far more thoughtfully drafted to permit parental access to apply funds for the minors benefit - details below-

https://www.hl.co.uk/investment-services/investing-for-children/bare-trust-account

The OP should also bear in mind that unlike a JISA, any investment income generated above £100 will be taxable on the parentduring the child's minority, whilst if the investment already established is now in profit, a transfer to the child's name will use up some of the parent's £3000 CGT allowance on the gain at date of transfer.