Invest for Children

Status
Not open for further replies.
V

vidapura

Registered User
Messages
56
Hi,
Apologies if this is the wrong place to ask this question. Please point me in the right direction if so.

We are in the priviliged position of being able to bank the childrens allowance for our two boys. (6 and 8)

We have recently had a notification from the Credit Union that our 8yr old sons account is approaching the €5k limit, after which we will not be able in deposit more.

In light of the bad interest rates etc I'm thinking maybe I could just invest the two lump sums for them in .. something.. but I don't know what... for 10 or more years until they need it for college or whatever.

I'm wondering if anyone could advise as to where to put the money and what implications there might be tax-wise? Do they incur inheritance tax? Gift tax?
Im afraid I don't really understand but the term 'trust fund' is in my mind and I'd like to know if that is what we need to set up?

Thanks in advance for any advice.
 
you need to think about what you are doing, if you are saving for the kids college expenses why bother putting it in their name, youll be paying those expenses and there are no tax implications of doing that, if you are going to gift them that money for them to pay themselves technically you are using up part of their CAT threshold.
 
HI, thanks.
Ohk.. Capital Aquisitions Threshold.. I have to read up about that so.
I thought if we just opened accounts in their names it would be their money.. no?
 
There are loads of existing threads about children's savings that might be worth searching out and reading. Taking a "silo" approach to children's savings rather than considering your overall household finances holistically may not be the best way to approach this. E.g. if you have a high mortgage or other unsecured debts then using the Child Benefit to reduce these may be a much better investment for your children's future. A Money Makeover might be a better way to approach this.

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
www.askaboutmoney.com
 
Brilliant, thank you . I will have a look at the Money Makeover so.
Its just that I am an older parent so I wont be around much into the lads twenties so I'm just trying to look out for them.
Also our marriage is probably ending so I just wanted to ringfence money for them alone.
But yeah, it might make sense to put more into finishing out the mortgage etc..
 
Status
Not open for further replies.
Back
Top