Savings/trust for nephews/nieces

This is a clear case where free advice is totally inappropriate. All the potential donors need independent professional advice.

Peter Crosland

Bitstring , from the wonderful person Peter Crosland said

I wasn't asking for advice, I was asking what the options/possibilities were. For instance some life assurance and UT companies used to offer schemes aimed at this (but that was some time ago, and before current money laundering regs became a PITA) 'Independent professional advice' is maybe the next step, if appropriate, and if the cost was reasonable within the scope of the fairly feeble amounts of money we are talking about. Fwiw, I =am= one of the potential settlors, and I'd still like to know what the possibilities are(or where to find out .. and no, I don't mean a £200/hour advisor).

For a straightforward flexible savings account the Halifax have a good deal. The rate is good, and can be tax free subject to completion of the paperwork. It's no good looking for anything more sophisticated unless you are looking at a very large sum, certainly 10K plus.

Let me spell it out for you! Free advice is often worth exactly what you paid for it. Anyone who thinks they are going to get anything more than general advice on a NG is at best naive, and at worst downright foolish. To get relevant, and valid, advice on financial matters for anyone, and particularly for people with assets well in excess of the IHT threshold is something that requires detailed professional advice. That advice would be based on a detailed examination of the finances of each individual not on a few vague sentences such as those in your original post. That advice is going to have to be paid for in one way or another. This will be by way of a fee or on commissions. That is the way the real world functions.

Peter Crosland

Have a look at the various schemes operated by the investment trust companies - Witan via Jump Savings, Alliance Trust, F&C, etc. They all allow designated accounts for minors to be established by parents or grandparents, which are effectively bare trusts.

Bitstring , from the wonderful person Bystander said

But what.,, if any, are the complication of opening such an account in name(s) of someone else - possible with appropriate documentation, or not possible at all?

Bitstring , from the wonderful person Terry Harper said

Thanks that's more like the sort of helpful advice I was looking at. Presumably they would also allow any other third parties to contribute??

Bitstring , from the wonderful person Peter Crosland said

Apparently yours is ..

I was hoping for exactly that .. general advice. Presumably by 'this NG' you mean 'uk.legal', because my experience of uk.finance is that they are a lot more help than you want to be. Fine .. back under your pebble .

No it isn't, it requires reading a whole bunch of documentation, rather more up to date than my last CII advanced financial planning course notes. The IHT threshold is a red herring - the amounts going in will be within the 3k/donor annual exemptions. I don't want to know how to duck IHT, I've already figured that out, I want to make sure that the savings aimed at these minors doesn't fall back into any of the donors inheritance tax estates - i.e. that it is really theirs, not someone else's.

I was inquiring about trusts, but a quick flick through the literature reminds me that most trust are basically one per settlor/settlement, i.e. they would probably be a PITA for regular donations, from multiple sources, so something simpler (like a tax free NS account, in the name(s) of the children?) would probably be better.

Nope, quite a lot of the real world gets by with people being helpful and nice to each other. Not, perhaps =your= real world, but the one you are excluded from. I'm not at the stage of buying anything, I'm still trying to find out what the options are. I've had two helpful replies, and two from you. 8>.

In message , GSV Three Minds in a Can writes

There are two pints 1/ the wrapper and 2/ the investments.

1/ Sounds like you need a relatively simple trust along the lines of an Accumulation & Maintenance trust or similar.

For IHT purposes the capital settlements made could be PETS but could also be gifts out of income if appropriate. The beneficiaries need never know of its existence until payday.

2/ The trust can invest in most asset classes available to individuals and using a life bond wrapper (of the portfolio variety) would be appropriate for easier ongoing tax charges and administration. You can put most asset classes in such a wrapper.

In message , GSV Three Minds in a Can writes

No they wouldnt. All who could subsequently contribute would be the original investors. Also it only works for 'minors' which although the beneficiaries may be now, they wont be later yet still at a time when the trustees want to retain control.

Well it is pretty clear that you are not interested in advice but just someone to agree with your rather jaundiced views. No doubt the Chancellor will get his reward in due course!

Plonk!

Peter Crosland

Peter Crosland posted

Serves the OP right ... From now on he will have to get along without the benefit of Peter C's free advice! :))

Bitstring , from the wonderful person john boyle said

We could probably live with that in the interests of simplicity and keeping lawyers off the case. And I guess we could get around the 'who can invest' problem either by having all potential contributors be original investors, or by just funnelling the money through one source, although I suppose that limits it to 3k/annum, unless it demonstrably comes out of income.

You mentioned 'parents and grandparents' .. is that the total scope (i.e. uncles/aunts are a non starter?).

In message , GSV Three Minds in a Can writes

No. Anyone you like!

I don't think that it matters from whom the money comes. It may have to be the trustees cheque though that goes to the managers.