Funds investment with children's own money

lostilly

Hi, my 3 children (13, 15, 17) were lucky enough to have been given money by their grandma several years ago. Since then the money has been in cash accounts (switched annually) in their names with OH and me as trustees (the 17 year old now has a cash ISA in her own name too).

I am now thinking of putting some of their money into unit trusts/OEICs. I view this as long term (greater than 5-10 years) as they will still have cash for possible uni etc.

My plan would be for my wife and I to open non-advisory accounts (fund supermarket) with a broker in our names with the children’s initials as designations. This is where I need some help as we haven’t really invested before and I am nervous of the rules & procedures.

• For tax purposes I assume that the investment is still treated as the children’s when it is held in such an account.
• Is it correct that the accounts become the children’s to control at age 18? I am hoping to persuade them to keep the funds in place (and maybe even put a bit more in now & again!) as they will have some other cash.
• At 18 how do the funds transfer over to their control? Can you keep them with the same broker and somehow change the account name or do you have to sell up and reinvest with all the costs involved?
• If when funds are transferred to their control at 18 can they then be wrapped in a S&S ISA in their account without having to sell up and reinvest like you would do with shares?

Sorry for long post but I am trying to get to grips with new stuff so many thanks in advance for any help.:)