Most parents would like to help their children financially, whether it is making sure there is enough money for their education or helping them buy their first property. An early objective may well be to help their children understand the value and importance of money.
Tax will be a major factor to consider, as will the risks of giving too much too soon. It is therefore important to appreciate the basic tax and legal rules and also some of the investment products that are suitable for children.
You should think about the reasons why you are setting aside money for your children, as they have an important bearing on your investment decision. Timescale is likely to be an important factor in choosing the appropriate investments as is your attitude to risk. The best approach to handling these matters is to consult a good independent financial adviser.
At OCM we can help in a variety of ways and are always happy to work with any existing professional advisers you may have. Typically in these situations we will cover some or all of the following:
- Comprehensive financial planning for your family’s finances and estate planning.
- Investment planning for yourself, your family and any trusts from asset allocation to investment selection.
- Inheritance tax mitigation.
- Advice on the choice of appropriate trusts.
- School fees and other educational cost planning.