Clients often ask us to review various savings vehicles available to support younger generations entering the world. As a result, we’ve developed and are delighted to launch the Courtiers Junior ISA.
One of the ways for a parent or grandparent to invest or save money for their child or grandchild is to make a series of gifts into a Bare or Absolute Trust, as outlined in our article series Bright Futures. As the child turns 18, the accumulated savings could provide a handy cash sum to spend on whatever they want…such as a house deposit, university costs or a first car.
However, there is now an alternative or complimentary vehicle. With a Courtiers Junior ISA, parents, grandparents, friends and family alike are able to save up to £4,368 a year (the 2019/20 Junior ISA allowance) on the child’s behalf.
The Courtiers Junior ISA invests in stocks and shares, which offer access to the growth potential of the stock market. Importantly, a parent or guardian controls the funds in the Junior ISA until the child reaches age 18, following which the Junior ISA will revert to an adult Stocks and Shares ISA. However, savings can be augmented as the child may start to place money into an adult cash ISA from age 16.
Through advice and discretionary management from your Courtiers Adviser, we can invest according to your attitude to risk and guide you (and eventually the younger generations) to help ensure your investments are working as efficiently as possible.
To learn more about the new Courtiers Junior ISA, please speak to your Courtiers Adviser directly, or contact us.