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  • FIRST POST
    • Hellsbellshg
    • By Hellsbellshg 12th Jan 19, 4:51 PM
    • 5Posts
    • 3Thanks
    Hellsbellshg
    Should I use Lifetime ISA to save for my young child long term?
    • #1
    • 12th Jan 19, 4:51 PM
    Should I use Lifetime ISA to save for my young child long term? 12th Jan 19 at 4:51 PM
    I'm trying to work out the best way to save for my 1 year old child. I do not want a standard child ISA because I do not want him to access the money at 18 years old, I'd like to keep control of the money until he is well into his 20's, established in a career and then I'd like him to use the savings as a deposit for a house ideally. I'm 37 this year so wonder if I should use a Lifetime ISA in my name to save for him? When I turn 60 and can access the money he will be about to turn 25 which is what I had in mind timescale wise anyway. What do people think? Is this a crazy idea? Aside from the obvious issue of not being able to access the money earlier without the fees incurred for this, I cannot see any other downside and could make a huge chunk of interest for him with the 25% they offer annually. Any advice or thoughts are welcome. Thanks :-)
Page 2
    • Flobberchops
    • By Flobberchops 13th Jan 19, 3:39 PM
    • 898 Posts
    • 714 Thanks
    Flobberchops
    Absolutely; if you weren't using your LISA subscription yourself and you're happy to reduce your overall ISA subscription ability by 4k (max) per year, that could be a simple and effective way to get a good return on money for future gifting.
    I work for a UK bank, but any comments made on this forum are solely my personal opinion. Caveat Emptor!
    • Facknats
    • By Facknats 13th Jan 19, 4:57 PM
    • 23 Posts
    • 31 Thanks
    Facknats
    How are people planning to gift the LISA sum? I would have thought that this would turn out to be problematic firstly, when you would have to complete the house sale for your adult child, as your firsr ever house buy or the names don't match up. And the other option would be withdrawal with no bonus..

    Am I missing something?
    • Alexland
    • By Alexland 13th Jan 19, 4:59 PM
    • 4,195 Posts
    • 3,510 Thanks
    Alexland
    You can withdraw from a LISA at 60 with accumulated bonuses without needing to buy a property.
    • Facknats
    • By Facknats 13th Jan 19, 5:32 PM
    • 23 Posts
    • 31 Thanks
    Facknats
    Ahhh I see. Thanks!
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