Junior Pension - Pensions for children

[SoTiredNeedHoliday]

Has anyone started one for their child? Looking to find out if people think it is a good idea or not. So far I've seen:

• savings that will grow until they are 55 or so depending on when the rules allow it to be accessed
• a way of saving for your kids where they can't touch the money while they're young (when they might not make good money decisions)
• government top up to a certain amount per year

any thoughts?

You can give away up to £3,000 as gifts per annum with no IHT repercussions. This is an individual limit - so two parents and four grandparents would be £18k per annum.

Thanks secrets

May I ask what happens to a child's investments and pension if the child dies before reaching 18? Presumably after 18 they can nominate a beneficiary, but a friend's son has just been diagnosed with a terminal illness, and we never really know what's ahead. My children don't have wills, even though DH and I do.

Whoever inherits their estate - usually the parents.
www.gov.uk/junior-individual-savings-accounts/if-your-child-is-terminally-ill-or-dies

We have named a beneficiary for DDs pension should she die before she gets it. She can obviously change this to someone of her choosing when she is in control of it.

Thank you so much, Sue (great name btw )

Our DC have written Wills which are logged with our solicitor. They are only mid-20s, but as you say Phil, none of us know what lies ahead. Your poor friend.