Child Trust funds replaced by Junior ISA's

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Child Trust funds replaced by Junior ISA's

The government plans to launch a tax-freeJunior ISA' to replace the abolished child trust funds (CTFs) abolished in the summer.

The new funds, which will allow parents to save for their children's future, will be available from autumn 2011 but will not benefit from government contributions as CTFs did.

Details are yet to be finalised but the annual contribution limit is likely to be a few thousand pounds investable in cash or stocks and shares.

The Treasury said the money in the Junior ISA will be owned by the child but they will not be able to access it until they reach adulthood.

The decision to launch a Junior ISA has been welcomed by the Tax Incentivised Savings Association (Tisa) which said a children's saving account would provide a focus for financial literacy and financial inclusion.

Carol Knight, Tisa head of member services, said:

'We fully support this announcement. Following the decision that children born after the end of this year will not qualify for aCTF there has been a real need for a scheme that is attractive to the consumer, is simple, provides choice, flexibility and variety and that is built on a brand they can trust.

'There is an increasing awareness of the need to take personal responsibility for the future whether it be retirement, higher education or housing. Many parents even now are making financial sacrifices to help children through university or onto the housing ladder so this new savings scheme will play an essential role by providing a vehicle which the public feels comfortable with and will help families make provision for the future.'

If you wish to save for your children's future contact Credencis.

We are situated near to Derby, Leicester, and Nottingham.

Credencis

"Live for today, Invest for tomorrow"

http://www.articlesbase.com/personal-finance-articles/child-trust-funds-replaced-by-junior-isas-3794548.html

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