Options For Your Children’s Future

Dentists work extremely hard to provide for their dependents. With a variety of options available, dentists should be able to offer their children a sizeable nest egg.

You can set up the account or savings plan in your name but ‘designate’ it to the child’s name. This makes you liable for any tax payable should the income generated exceed £100 per annum. However, all income arising from investments designated by anyone other than parents will be the child’s, making it tax-free unless they exceed their personal allowance (which is the same as an adult’s).

Bare Trust investments remain in your name, and you hold them in Trust on the child’s behalf. For tax purposes, the investments are the child’s, enabling you to make full use of your own annual Capital Gains Tax (CGT) allowance, and is also useful for higher rate taxpayers. Upon reaching 18, the child will gain control following completion of appropriate paperwork.

Alternative options include Accumulation and Maintenance trusts, where Trustees control the income or capital received by beneficiaries, or general Discretionary Trusts for greater flexibility.

For any protection tax, investment, pension or retirement advice, contact expert independent financial planners money4dentists and discuss how to take control of your finances and your future.

For more information call 0845 345 5060 or email info@money4dentists.com or visit www.money4dentists