Investing for your children’s future

Supporting your children onto the housing ladder is a very generous act, but starting an investment plan from a young age has even more advantages. Setting aside funds early on means that even modest amounts invested, on a regular basis, will benefit from the effects of compounding. It also, reduces the risk of investing more significant amounts at the wrong time or during periods of market volatility.

By the time your child reaches 18, this could mean they have a substantial fund to assist with university life or a generous pot for their first house deposit.

Of course, from an estate planning perspective, by using gifting allowances to fund the investments – currently, a lump sum of up to £3,000 per year, and unlimited gifts of £250 per year – parents and grandparents, indeed anyone could benefit from the transfer of wealth without any Inheritance Tax penalties.

The use of gifts and trusts* are best understood in the context of your own personal circumstances. If you want to know more about how they can help with your estate planning needs, please contact us.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

*Trusts are not regulated by the Financial Conduct Authority.