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Child Trust Funds - What's your view?

(13 Posts)
MistressMary Tue 15-Feb-05 20:45:33

Just discussing this with OH.
We get a voucher for 250 quid, which we then open an account with. Seven years later we should get another sum of money yet to be decided.
We can add money, but til 18 is untouchable for our Ds. So if anything happens God forbid to us or him before that time, it goes where?
And if we don't use the voucher and it expires the Inland Rev open an account on our behalf.
Am I right? A bit of a numpty at the best of times. What's your take on this scheme?

wobblyknicks Tue 15-Feb-05 20:52:56

You're right as far as I can see. Personally I don't trust it at all, don't trust any Government 'good idea'. Am going to put the money into a CTF account and just leave it, and set up a separate savings account to properly save for dd.

gingerbear Tue 15-Feb-05 20:55:57

It is our (taxpayers) money anyway, not the governments.
here is the inland revenue page about it

also check here

misdee Tue 15-Feb-05 20:57:21

already have savings accounts for my kids, dont save much in them (£8 per month each), but this gets used for holidays etc, or large items they may want in the future (last year dd1 wanted a tv, and told her she had to use her money to pay for it, which she did, and she was only 4 at the time, too much responsibility maybe??). i have had dd2 voucher for about a month now, and still havent opened an account for her. will do so at some point. probably when i go and open dd3 account once she is born and i have her voucher as well.

gingerbear Tue 15-Feb-05 20:57:46

sorry, second link is

pixiefish Tue 15-Feb-05 20:58:04

same as wsk. Dh has a theory that this is creative accounting by gordon brown. it'll buoy up the financial markets won't it. Have been saving the family allowance every month though and have started thinking about an Isa on her behalf.

mistressmary- if anything happens to the child before 18 then from what i can gather the trust fund can be closed and the money reverts to you. if something happens to the parent then the money stays where it is till the child is 18

gingerbear Tue 15-Feb-05 20:58:26

sorry, second link is

yingers74 Tue 15-Feb-05 21:04:39

yes you are right.

The scheme is just a political crock in my opinion to get us parents to vote labour in the election, to me it does not make sense to give 250 pounds to a child born to a millionaire or to expect poor parents to be able to contribute enough for it to cover something like uni fees. Also there is nothing to stop our lovely dds and dss blowing the whole lot when they are 18 on alcohol or designer clothes! I would rather the money was not given to us and instead spent on cheaper childcare, ie more nursery centres or alternatively scrap tution fees or even just ensure all parks have adequate play areas for different age groups.

However, despite my rant, it is certainly better than a slap in the face so I shouldn't complain .

I won't be voting labour though!

MistressMary Tue 15-Feb-05 22:56:25

See I'm not the only cynical view then.
Thanks for the links too gingerbear.

bunni Wed 16-Feb-05 08:44:00

and there I was wondering what to do with mine really???? now have the voucher for dd2 but what about dd1 do I now have to find another £268 to start one up for her too as she will not have one????? That means dd2 will get more money later on???? I do have bank accounts for them both anyway where I put money in each month.
So are all others that have children before gonna start one up for them too????

Bozza Wed 16-Feb-05 08:53:11

Actually bunni it has worked out alright for me in that respect. Because DS was given a lot more money when he was born than DD was. So the money from the govt should get it close to balancing and then I will sort it out to bring it a bit closer.

yingers74 Wed 16-Feb-05 20:20:10

bunni - unfortunately, you can't open an child trust fund for older children. U can open an ordinary account etc but not one of these special ones which are tax free. It is unfair.

galaxy Wed 16-Feb-05 20:32:12

YOu can open an Isa which is tax free for them

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