Junior Investing and Next Generation Planning at Netwealth

Yes, we offer Junior Stocks and Shares ISAs.  Only a parent or legal guardian can open a Junior ISA in the name of a child.  The person opening the account will be the registered contact and will be responsible for how the money is invested.  Although the Junior ISA must be opened by a parent or legal guardian, anyone can make a contribution as long as the total does not exceed the annual limit which currently stands at £9,000 per tax year.

Yes, as a child can only hold one Stocks and Shares Junior ISA, any existing Stocks and Shares JISAs will need be transferred to Netwealth.  Our client service team will send you a pre-filled form to complete and once received will take care of contacting your current provider.

Yes, as a child cannot cannot hold both a Child Trust Fund and a JISA, if they have a CTF this will need to be transferred to Netwealth where it will become a Stocks and Shares JISA. Our client service team will send you a pre-filled form to complete and once received will take care of contacting your current provider.

You cannot withdraw funds from a JISA.  Once your child turns 18, we will invite them to open an ISA with Netwealth and their JISA will be converted into this adult ISA.  They will then have full access to their ISA and may withdraw from it if they wish to.

Not at present but it is something that we are looking to add to our product offering.

Junior GIAs offer a more flexible way to invest on behalf of your child than a Junior ISA. Unlike Junior ISAs, there is no limit to how much you can contribute to a Junior GIA or how many you can open on behalf of your child. The money held within a Junior GIA can also be accessed by the trustees at any time for the benefit of the child (e.g. to pay for school fees).

Although returns with a Junior GIA are taxable, you may be able to use the trust to make use of your child’s annual tax allowances for both income and capital gains. This is usually the case if the settlor of the trust is anyone other than the child’s parents, for example a grandparent.   

As with a JISA, from an inheritance tax perspective, contributions to a Junior GIA could be counted as regular gifts out of excess income and so the capital would be outside your estate immediately.

At the age of 18, the Junior GIA can easily be converted into a regular GIA to ensure they remain invested.  This can remain as a Bare Trust managed by the parent or trustees if the child agrees to this in writing once 18.