Child Trust funds
Discussion
I am going to create a Child Trust Fund for my God daughter as an ideal way for her to have a lump sum when coming of age.
Does anyone have any experience of this?
I want something that I can start up with a small amount £200 and people can add in to it as and when.
What is the best way to go into these sort of things?
PS I am a financial numbskull
Does anyone have any experience of this?
I want something that I can start up with a small amount £200 and people can add in to it as and when.
What is the best way to go into these sort of things?
PS I am a financial numbskull
She will already have one, they are automatically setup if she doesn't.
Once money goes into a CTF she will have full control when shes 18 so can run off and spend on what she wants and there is nothing you can do about it.
Don't put it into a cash fund unless you are very risk adverse as you will make nothing over 18 yrs.
Once money goes into a CTF she will have full control when shes 18 so can run off and spend on what she wants and there is nothing you can do about it.
Don't put it into a cash fund unless you are very risk adverse as you will make nothing over 18 yrs.
Kudos said:
She will already have one, they are automatically setup if she doesn't.
Once money goes into a CTF she will have full control when shes 18 so can run off and spend on what she wants and there is nothing you can do about it.
Don't put it into a cash fund unless you are very risk adverse as you will make nothing over 18 yrs.
This is kind of what I don't want. As I don't want her to be able to blow it all at 18.Once money goes into a CTF she will have full control when shes 18 so can run off and spend on what she wants and there is nothing you can do about it.
Don't put it into a cash fund unless you are very risk adverse as you will make nothing over 18 yrs.
elster said:
This is kind of what I don't want. As I don't want her to be able to blow it all at 18.
In that case you aren't really saving for HER.You are saving for YOU.
If you are making the choice about how the money is spent then that is as good a definition as any for "your money"!!
As a result the government clearly aren't going to help you avoid tax beyond your ISA or pension allocations.
You could just start a separate savings account in YOUR name which you will "give" to her at a time of your choosing (to spend on something you approve, I guess).
Again - no tax break.
You could earmark some of your ISA (if you have one) for her in the same way - then she would benefit from the tax break but you would lose out.
Both of those options aren't going to encourage others to deposit much though!
Also, those sorts of gifts might end up owing inheritance tax if you croak and it's big enough.
Why not set up the junior ISA and help raising her so that she WON'T blow it at 18?
walm said:
elster said:
This is kind of what I don't want. As I don't want her to be able to blow it all at 18.
In that case you aren't really saving for HER.You are saving for YOU.
If you are making the choice about how the money is spent then that is as good a definition as any for "your money"!!
As a result the government clearly aren't going to help you avoid tax beyond your ISA or pension allocations.
You could just start a separate savings account in YOUR name which you will "give" to her at a time of your choosing (to spend on something you approve, I guess).
Again - no tax break.
You could earmark some of your ISA (if you have one) for her in the same way - then she would benefit from the tax break but you would lose out.
Both of those options aren't going to encourage others to deposit much though!
Also, those sorts of gifts might end up owing inheritance tax if you croak and it's big enough.
Why not set up the junior ISA and help raising her so that she WON'T blow it at 18?
So only she has access to the money once over 18, but can't have it all until 25 or something like that without trustees say so.
I know I had one when I was a child, not sure if I am explaining what I mean properly.
elster said:
A trust fund, as in a fund set up with trustees who oversee and her being the beneficiary. Not me saving money.
So only she has access to the money once over 18, but can't have it all until 25 or something like that without trustees say so.
I know I had one when I was a child, not sure if I am explaining what I mean properly.
Sorry! That makes total sense.So only she has access to the money once over 18, but can't have it all until 25 or something like that without trustees say so.
I know I had one when I was a child, not sure if I am explaining what I mean properly.
I am sure these can be set up but you would need to speak to a proper lawyer and I doubt it would have any tax advantages.
Gassing Station | Finance | Top of Page | What's New | My Stuff