Grandma wants to invest money for DC's, is child trust fund best option, help!!!

[Kushti]

My Grandma puts money into DC's child trust funds every moneth but would like to double the amount as she says her money will die with her (she is 85). Would it be best to open seperate ISA's for them or get her to double up CTF payments? Any advice appreciated, thanks!

If your child has a ctf they can't have a junior ISA, CTF perform quite poorly though.

She could contribute more to the CTFs or you could look at a higher-paying savings account for them and declare them as non tax-payers. CTFs being based on stocks and shares are a long-term investment and, depending on who they are with, are quite likely to outperform cash deposits over any 18 year period. If you want to spread the risk, some cash and some stocks makes sense.

The only other point is inheritance tax. If Grandma's total estate qualifies for IHT after she goes (currently £325,000), any large gifts made in the 7 years immediately preceding her death could be liable. However, Grandparents can give away up to £2500 each year with no impact.

Kushti, questions like this are best answered by an independent financial advisor. They have to undergo special training in how to advise people just like you. Even better, they are regulated by the financial services authority - the FSA. Even advisors at your bank need training and are regulated - so maybe pop along and see them. Or contact your local citizens advice bureau - they often have people trained in financial matters. Cheers.

My mother bought my two N S & I savings/premium bonds last September and my youngest has already had a 'win' of £25.00, so not a bad return for 6 months investment!

Fifi - what happens if one of them wins a million?

Fwiw we've always discouraged people from putting money into their CTFs because I just think that when they turn 18 and get a pile of cash there's no way they'll do anything responsible with it. I'd almost certainly have gone on holiday with it and I sort of expect them to do the same (after all it's their money). I'd rather it went somewhere where I had a bit more control (mwah hah hah....)

My Mum opened a Jump account for DS when he was born. She did lots of research and found it to be the best one. In my post-birth haze I can't say I paid much attention to the details but it would be worth checking out.