Child Savings

Teledude · 18 Oct 2013 at 16:24

What are the options?

Don't want a Junior ISA as I want it locked away for 21-25 years - possible?

div0 · 18 Oct 2013 at 16:39

Is this likely to be in the form of regular savings, if so roughly how much / how often?

Or, is it more likely to take the form of a lump sum, tucked away for 25 years?

WillyNelson · 18 Oct 2013 at 18:30

Child trust fund?

Hyburnate · 18 Oct 2013 at 18:34

Why do you want it locked away for 20odd years? Probably best just telling them as sometimes if their strapped for cash and that's sitting there you're stuck. Never know what might happen

Biohazard · 18 Oct 2013 at 18:38

Hyburnate said:
Why do you want it locked away for 20odd years? Probably best just telling them as sometimes if their strapped for cash and that's sitting there you're stuck. Never know what might happen

So they can't nip your head constantly about wanting something that they don't need, or spend it frivolously in their teens. It's no guarantee, but it's certainly a good carrot.

mame · 18 Oct 2013 at 18:42

WillyNelson said:
Child trust fund?

I think those stopped with the government change.

Hyburnate · 18 Oct 2013 at 18:42

Biohazard said:
So they can't nip your head constantly about wanting something that they don't need, or spend it frivolously in their teens. It's no guarantee, but it's certainly a good carrot.

I'm personally in that position myself

I have a trust fund, money could be, well it could be coming in at a faster rate

But me nor my sibling can access it till I'm 18. Even if it was just to borrow it out of it until things get sorted etc.

Biohazard · 18 Oct 2013 at 18:43

What's that going to teach you?

Can't you sort it out somehow until the trust is yours?

grumpysculler · 18 Oct 2013 at 19:11

Teledude said:
n't want a Junior ISA as I want it locked away for 21-25 years - possible?

You can't save for that long in a children's account. The money would be held as a "bare trust" and they would have an absolute entitlement at age 18 (16 in Scotland).

Either you save in your own name and keep it ringfenced, or you do a more complex trust like a discretionary trust. Tax treatment of those is not always trivial.

Also bear in mind the £100 rule - one benefit of a JISA is that the rule does not apply...