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Saving for children

All, We have two children who we want to save money for when they reach 21.

The eldest is 7 and we have a "standard" saving plan running for the past 6 years. The premium is stepped so that it increases every year and the final year of the 10 year plan will be approx £50. After that we intend on continuing for another 10 years @ £50/month so that the policy will mature when the child is 21.

The young of the children does not have a plan yet, but we have just switched from endowment to repayment mortgage and are going to continue with endowment part (~£60/month 18 years remaining).

Are there any implications with this set up and can we just gift these 2 policies to the kids when the are 21 ?

Cheers

A
Reply to
Ady
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Consider an investment trust (or unit trust) saving scheme in the child's name (

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list some). The fees on some plans are quite high especially if they are being "sold" by agents, and some plans actually penalise you if you want to stop contributions for a year or two. Contact whoever runs the plan about putting it into a child's name. There shouldn't be a problem with you acting as the child's representative until they are

  1. If it is in your name you will probably pay more tax.

Reply to
DP

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