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Savings account/trust fund for children - help!

(3 Posts)
Boobie2 Mon 09-Nov-15 10:52:04

My parents have given £2000 each to my children and have hinted they may be adding to this sum. Where do I put it? A savings account? Trust fund? ISA? Where?! I'm hoping it will not be touched until they're 18 at least. Also, should it be in my name or theirs?

milaforni Tue 10-Nov-15 21:39:15

We set up a college fund for our granddaughter. It's a tax free shelter we have here in the States. Not sure what is available where you live. We had an initial investment and then set up a monthly automatic withdrawal from our checking that adds a little every month. It should be a nice amount by the time it's time for her to go to university. Her parents add to it monthly also.

NoSquirrels Thu 12-Nov-15 12:12:50

You can get cash ISAs for children, which are in their name and pass to them once they are 18. At 18 you will get no say in how they spend it.

Or you can put it away in accounts in your/your DPs names, and give it to them when you feel they are responsible enough, or to go towards a specific purpose e.g. university fees/a first car etc.

Probably not a big enough amount at £2000 for a trust fund, as you'd need to pay to set it up and the fees would outweigh the hassle.

Depends on both your attitude to risk and how your DPs envisage the DC spending it. Would they be OK with them blowing the lot on a gap year at 18, or would they want it to go towards a house deposit, say? Or do they not care? I would discuss with them first, if I were you.

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