Buying shares for kids

Rachelbf

Hi,

I want to buy some shares for my kids, partly to teach them about how shares work but also as part of savings towards uni. Because I'm using this to help teach them, I want to be able to buy shares in identifiable companies, rather than in funds, and to be able to buy them in the kids' names. The amounts I'm buying won't be massive (perhaps a few hundred pounds over a year per child). I've heard of bear trusts which sound ideal but I keep hitting brick walls when I call dealers. If anyone has any tips re how to buy shares at reasonable prices and stick them in a bear fund I'd be very grateful!

TIA

Rachel

Lokolo

You won't be able to give the shares to your kids, shares = contracts = no under 18s. They will have to be in your name.

John_Pierpoint

My parents tried this for our kids during the period that M.Thatcher was selling the family silver.
I ended up with certificates "Mr Pierpoint a/c x.y.z" These are trustee holdings for child with initials X.Y.Z.

They were a useful educational tool, as in those days I could claim back the ACT (income) tax (I got the kids to fill in the forms etc.).
At the age of 18 they were transfered into the names of the children. They were joined by demutualising Building Society shares. (Northern Rock anyone). Son still has a "portfolio" but daughter cashed in her certificates to pay off student debts.

On balance having that little bit of income of their own, the modest capital gains gave them an insight into how the system works.

BTW it is a "bare" trust if you will bear with me.

gt94sss2

Rachelbf wrote: »

I've heard of bear trusts which sound ideal but I keep hitting brick walls when I call dealers. If anyone has any tips re how to buy shares at reasonable prices and stick them in a bear fund I'd be very grateful!

Selftrade offer this facility but call it a 'Designated Dealing Account' - you would need to complete Section C of their application form

As has been said, the accounts will be held in the name of 'Rachelbf a/c childs initials'

Regards
Sunil

Rachelbf

Thank you all of you for your help - that's set me on the right path - sorry I've been so slow to reply, bad weekend!

Best wishes,

Rachel