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Investment for children that matures when they reach 25

(17 Posts)
Chapuys Mon 26-Jan-15 18:20:00

Message withdrawn at poster's request.

VadaSultanfuss Fri 30-Jan-15 01:27:26

I'm also interested in doing this although I would plan to drip feed the money in. We're newbie investors and this would be our first toe-dip in the waters so I'm keen to hear what others have done.

whooshbangprettycolours Sat 31-Jan-15 20:55:48

An off shore investment bond would work. You can allocate it to them to make it tax efficient. I like some of the Pru vehicles for this purpose.
A trust can work too but a discretionary trust not a bare trust. The tax implications mean an investment bond again rather than OEICs

bamboostalks Sat 31-Jan-15 20:58:57

Pensions are very tax efficient as the government add so much more to it. The idea is that when they reach a mortgage wanting age they can borrow against it. You invest stocks and shares.

whooshbangprettycolours Sat 31-Jan-15 21:01:40

I have seen someone borrow against a pension, but it wouldn't provide a deposit

Chapuys Tue 03-Feb-15 22:21:31

Message withdrawn at poster's request.

SoonToBeSix Tue 03-Feb-15 22:24:31

Just put it in a childrens ISA and don't tell your dc they exist until they are 25.

bobs123 Tue 03-Feb-15 22:27:48

Once they are 18 they can't have a childrens ISA - it gets converted to an adults ISA

bobs123 Tue 03-Feb-15 22:37:00

How old are they now? If young then perhaps a bond (I like the Prudence bond) or solid shares with dividends reinvested set up in a bare trust? I think that legally they are entitled to anything set up in their name once they reach 18. If this means them having to sign anything then it's a bit difficult hiding the investment from them until they get to 25.

Yes you could set up some sort of trust fund but I'm not sure of the costs involved.

I bought shares in the DC's names with the dividends going into a bank account and just told them it existed and the account would be theirs on their 18th Birthdays.

SoonToBeSix Wed 04-Feb-15 00:00:07

Yes I know it converts to an adult ISA but your dc still won't know it exists unless you tell them.

Medoc Wed 04-Feb-15 00:04:40

And presumably, there's no way of them finding out, as they are not exactly likely to be trying to use their ISA allowances from those years...

caroldecker Wed 04-Feb-15 01:08:14

You can set up a trust for them to only gain access when 25, but IFAIK this is tax inefficient.

caroldecker Wed 04-Feb-15 01:09:07

As people have said put it an ISA for them and do not tell then until the right age.

Chapuys Wed 04-Feb-15 06:47:46

Message withdrawn at poster's request.

bamboostalks Wed 04-Feb-15 11:43:46

Honestly pursue the pension angle. My brother in law has been saving into pensions since his kids were born. It's an amazing tax break. He's a top banker so I think he knows what he's doing.

caroldecker Wed 04-Feb-15 14:00:55

bamboo I would suspect as a top banker he has a number of investments for his children - if it is just £10k, that may not be the best advice

whooshbangprettycolours Tue 10-Feb-15 20:56:01

I have bankers as clients and they do indeed save into their kids pensions, ...their kids ISA's, their own ISA's, their pensions, their partners pensions, a GIA, off shore bonds, onshore bonds, the odd VCT and EIS, SEIS and sometimes even binary options. ...

An IFA that can't come up with a solution beyond an ISA isn't much cop!

The thing about an ISA is that you can't keep it secret as they begin to write to the child/adult at 18 by name. You'd need to open all their post.

Yes you can do it yourself but I would feel a bit remiss urging you on.

In all honesty, if you've not filled up your ISA's do it in your own name

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