Investing for Children: The Difference You Can Make
Starting to save early for a child or grandchild’s future can give them a much-needed financial leg-up, and gifting wealth now could cut future inheritance tax bills, outlines this report by Brewin Dolphin.
Key options include:
A Junior ISA allows you to save up to £4,260 (£4,368 in the 2019-20 tax year) in a tax-efficient way.
A bare trust is particularly useful for grandparents who want to keep tax on savings to a minimum and retain some control.
A junior pension can give a child a substantial head start on saving for retirement, making this one less thing to worry about when they become an adult.