What is a Child Trust Fund in England?

Question

In 2007 I got a letter from HM Revenue & Customs Child Trust Fund with my sons ref. number that he is eligible for a trust fund, and that I was sent a info pack & voucher to use to open an account for my child, which I didnt get. The letter also says that the voucher has now expired and not been used, and when this happens they are obliged to open a Child Trust Fund account for my child with a starting payment of £256 with a Trust Fund Provider, and that the money belongs to my child. It is a Stakeholder account. My son is abroad with his mother, can I collect the £256 to send him?

Answer 1

A Child Trust Fund is a long term savings plan for newly born children, designed for them to have money when they are 18.  You can get a replacement voucher at www.childtrustfund.gov.uk.  You can’t “cash in”, only your son can at age 18.

Disclaimer:

The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances.  To find and IFA please call 0800 085 3250 or go to http://www.unbiased.co.uk.

Answer 2

It is a trust fund set up for children. Each new born gets 250 and another 250 when they turn 5 (low income families receive 500 per time). The fund can be invested   with registered fund managers and should gather interest over it's life. At 18 the child receives the amount directly to them. You can choose to make additional payments if you want, you can not make withdrawals. If the parent doesn't open an account of their choosing the Inland revenue automatically open a 'stakeholder' account on their behalf

Answer 3

It's like an savings account that each child now gets.

They  can't touch the money 'til they are 18 and it's up to you if you want to deposit more that the £250 the government contribute...

Answer 4

No. He can access it when he's 18 its designed so parents cant get to it. It's for your son. Add to it so he has more when he's older thats what my friends are dong for their kids.