Setting Up A Trust Fund For Another's Child

MyEggNest

Question:

I have been looking into opening a trust account as a long term gift for my friend's and their baby daughter. Is this possible or does it have to be for your own child? If it is possible, would it affect me being able to open a trust for my own children when they come along? As far as contributions are concerned, would I be able to make contributions on an ad hoc basis, i.e. on her birthday/Christmas etc? Thanks in advance for your assistance.

Regards

Ben


Answer:

Hi Ben, as your friends will be the one receiving the £250 voucher form the government they will be the ones who have to open the child trust fund, there is nothing to stop you gifting them the money, or alternatively you could do something called a unit trust, you can open as many of these as you want for many different children etc, the limiting factor may be that the minimum premiums for these are generally higher than the child trust fund. Please find enclosed my contact details if you would like to discuss this further, regards, Steve


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