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He's no longer eligible for Child Savings Accounts, but I don't want him to be able to get his hands on the lump sum we've been saving for him. I also don't want to put the money in my own name, if possible.
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272Once he turns 18, you can open an ISA in his name, but don't give him any of the documents to access it until you think he's responsible enough to use it right. Just make sure he understands what your doing for him, and doesn't try to find the statements and get access to it! If you're worried that he might, you can not tell him you've opened it and intercept all the statements - it works best when the son is at university, or you can get the documents sent to a friend or relatives address so they don't see them. That's what my Dad did for me whilst I was at university, and signed it over to my name when I mentioned I was saving for my first flat.
Posted on 10 February 2010 |
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804Put the savings into an account in 'Your Name re: His Initials'. That would be a 'Bare Trust' which would be due to him at 18, although you should be able to continue to administer it because it is in your name. You should need his birth certificate to open the account. It would show his name and yours as parent.
That is what I did for my son's university costs, so he didn't get hold of any of it and it wasn't all spent until he was 23.
As it is a segregated account, it doesn't normally count as your account for tax purposes.
However, you say that you have been saving for him. If the parents were the source of the money and more than £100 interest is payable, then it is regarded as the parents income for tax purposes. You haven't been infringing that rule yet, have you?
If Grandparents, or Aunts, or friends were the source then it would classify as your son's income and his own personal allowance would prevent tax being due.
So far as the tax exemption form is concerned, he will have to sign it as he has now reached employment age.
Mike
Posted on 10 February 2010 | Love 0 loves
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134You could start a pension for him.
Posted on 10 February 2010 | Love 0 loves
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8How long do you want to keep saving for him?
Harpenden Building Society has an account that does NOT allow ANY withdrawals until "the account holder reaches their 18th birthday"
Can be operated by branch or post, minimum opening amount only £1, and a reasonable interest rate of 2.45 gross - you can do the usual thing of completing an R85
http://www.harpendenbs.co.uk/savings-childrens.asp
Posted on 10 February 2010 | Love 0 loves
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