anyone investing in OEICs for their kids? how have you set this up?

[serenequeen]

hi everyone

would really appreciate some advice on how to best structure some investments for the kids.

we're not talking anything fancy, i just want to invest the childrens' allowances and birthday gifts efficiently.

i currently have a uk tracker fund wrapped in a mini isa for ds - it's in my name. i'd like to set something similar up for dd, but can't open another equity mini isa in my name.

so should i transfer ds's account into his own name and then set up another one for dd in her name? set up another fund for dd in my name - but without the isa wrapper? that doesn't seem fair to her, as she won't get the same tax breaks, but in practice it's extremely unlikely that substantial gains in excess of annual allowances will arise anyway with the amount we are putting in.

i would like to retain control of the cash until they are 21 if possible - will they get control at 18 if the investments are in their names?

any advice very much appreciated.

thanks in advance

Don't worry about the ISA wrapper - as you said, the tax breaks are only for the CGT, and you are unlikely to go above those limits - and tbh the breaks probably won't exist by the time they access it.
And under 16's can't have an ISA, so it would have to be a straightforward unit trust or OEIC (no real diff btw except single pricing on OIECS and so sometimes higher AMC to make up for the lack of spread)
Unfortunately yes if the investments are in their names they will get control at 18. And if they are in your name and not designated to the kids then they will still be treated as part of your estate for IHT and CGT purposes. We have gone down the designation route because I'm happy for them to get it at 18 (but v. hopeful I can persuade tehm to spend it wisely!) You probably need to actually set up a trust if you want to delay - this can be done quite simply but you will need a solicitor.