Nicholls Stevens Financial Services

THINKING ABOUT THE GRANDCHILDREN

Hopefully you have enjoyed a holiday and maybe during the summer month you have seen a little more of your grandchildren

We are frequently asked about methods of saving for children and grandchildren. Many Grandparents wish to build up a fund to help with further education or training, or to provide the deposit for a first home.

Government help

As you are no doubt aware the Government now lend a hand in helping families give their children a good financial start in life. Every child born after 1 September 2002 receives a £250 voucher at birth and a further £250 voucher at age 7. Children whose parents qualify for child tax credit may be eligible for a further £250 voucher. It is possible for parents or grandparents to contribute up to a further £1,200 per annum to the Government backed scheme. These funds will build up tax free and the child will have access at age 18.

Child Trust Fund

There are three types of scheme available: savings, shares and stakeholder and we can advise on which scheme my best suit the needs of your particular grandchild.

If you want to contribute more than £1,200 per annum you can do this directly into a scheme which is designated for the benefit of the grandchild. A regular savings arrangement into a collective investment is ideal. The grandchild has his or her own annual capital gains tax allowance so it should be possible to build up a fund which is not subject to tax Some grandparents may like the idea of investing in an ethical fund and this is possible

If you want any help please let us know and we can give you a recommendation