J
journeyman10
Guest
Hi All,
I'm setting up an investment account for my son - to pay for future education (e.g. university) fees, maintenance, etc. In addition to myself and my wife, relatives (grandparents, aunts, uncles) are making contributions to this fund. In addition to lump sums to set it up, some on-going payments will be made.
My question is whether or not there is a tax advantage / disadvantage to setting up the account in my son's name as opposed to my own name. In particular, are there implications for gift tax ? Note that my son is only 6 month's old, so cashing in the investments is a long way off!
I've looked at two funds so far - Quinn Life Freeway Pride'n' Joy and Eagle Star Child Savings Plus.
Quinn Life have said that the account has to be set up in my name, and that there are no tax advantages to setting it up in my son's name. However, my son can be named as a beneficiary on the fund - the rep was unable to tell me what benefits derive from this, though.
Eagle Star's literature (see PDF brochure downladable from [broken link removed]) describes some tax advantages to assigning the fund to the child, but is not very clear. Additionally, their rep said that there was no advantage to making such an assignment.
So, seems there is some confusion out there amongst the fund providers themselves !
I'd be grateful if someone could describe what tax advantages (if any) derive from setting up the account in the child's name.
Many Thanks,
journeyman
I'm setting up an investment account for my son - to pay for future education (e.g. university) fees, maintenance, etc. In addition to myself and my wife, relatives (grandparents, aunts, uncles) are making contributions to this fund. In addition to lump sums to set it up, some on-going payments will be made.
My question is whether or not there is a tax advantage / disadvantage to setting up the account in my son's name as opposed to my own name. In particular, are there implications for gift tax ? Note that my son is only 6 month's old, so cashing in the investments is a long way off!
I've looked at two funds so far - Quinn Life Freeway Pride'n' Joy and Eagle Star Child Savings Plus.
Quinn Life have said that the account has to be set up in my name, and that there are no tax advantages to setting it up in my son's name. However, my son can be named as a beneficiary on the fund - the rep was unable to tell me what benefits derive from this, though.
Eagle Star's literature (see PDF brochure downladable from [broken link removed]) describes some tax advantages to assigning the fund to the child, but is not very clear. Additionally, their rep said that there was no advantage to making such an assignment.
So, seems there is some confusion out there amongst the fund providers themselves !
I'd be grateful if someone could describe what tax advantages (if any) derive from setting up the account in the child's name.
Many Thanks,
journeyman