Jul 25 2008
Those interested in saving for children have been told of the benefits of bare trusts by two experts this week.
Bare trusts – a common trust to safeguard money for under-18s – was recommended by both Cardiff-based independent financial advisor James Gadd and the Times Money section.
Writing in Wales' newspaper the Western Mail, Mr Gadd discussed a number of options for saving for children in case of divorce or death.
He said of bare trusts: "It holds the asset in the trustee's name and allows the beneficiary access to both income from and property in the trust at any time. It can be used to gift money over your lifetime."
Mr Gadd added there no inheritance tax (IHT) charges if you survive for more than seven years after the money is transferred.
Meanwhile, the Times offered a guide on investment for children which included bare trusts.
Since there is no trust document, the newspaper said the bare trust would be "extremely easy to administer" in practical terms.
The Times also described Child Trust Funds, child ISAs and other products.
