Savings for the later benefit of children

Jul 29, 2004 1 Replies

My son is divorced and his ex does not allow him (nor anyone on his side of the family) to see his children, and we suspect that presents to them are not passed to them.


So "our" family would like to build up (modest) funds for the benefit of the children when they are, say, 21 years old. So instead of sending the children birthday/Xmas presents we would just pay cash into some kind of fund.


What options are available for this i.e. what sort of fund?



It would be simplest if payments into the fund did not have to be routed through any particular individual.



Presumably we could simply open a Building Society account in the children's names but would that require their signature at the outset? Could we stipulate that withdrawals must await their 21st birthday?



Could we set up a trust? What sort of trust? How would that operate? Would payments-in have to be routed through the trustee(s)?



Advice on this really would be most welcome.



Mike


I guess any sort of fund would be suitable. List of fund performances here . Given the likely time span, my choice would be for higher income equity funds (purely because the requirement for higher income imposes a sensible investment strategy on the fund manager) then Exchange Traded Funds (ETFs). Don't pay full charges on UTs/OEICs as it's normal for brokers to reduce initial & annual charges eg

Here's an overview of different trusts

They'll be links to other companies involved in the previous discussions on the subject -

hth

Daytona

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