Setting up children’s Trusts for children under 18 who have never been married or in a civil partnership will be either:
- Bare Trust
- An Interest in Possession Trust
- An Accumulation Trust
- A Discretionary Trust
Child trust fund
A Child Trust Fund (CTF) is a tax-free way of saving. They are savings accounts for children that could be used to deposit free cash vouchers previously handed out by the government. CTF are no longer available to new-born children and have been replaced by Junior ISA’s in 2011, however holders of a CTF (parents, grandparents and others) may still deposit up to £4000 in those accounts, attracting a tax free interest. Funds are held up to a child’s 18th birthday; when they will receive a lump sum to spend how they wish.
Junior Individual Savings Account (ISAs)
Junior ISAs are long term tax-free saving for children who are under the age of 18 and who do not have a Child Trust Fund (CTF). From 1st November 2011 your child can have a Junior ISA if they:
- Are under 18
- Living in the UK
- Are not entitled to a Child Trust Fund account
This money cannot be withdrawn until the child is 18 years old.
At Beacon Wealth Legal we can help you plan for the future, helping to eliminate stress for those you may leave behind and making sure your children are provided for. Call us for more information.
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