Savings/investments for childrens future

Isn’t 3k cash the same thing, or 3k into a Revolut junior account where you can still set up weekly allowances so it’s not really available to them to spend?

conor_mc said:

Isn’t 3k cash the same thing, or 3k into a Revolut junior account where you can still set up weekly allowances so it’s not really available to them to spend?

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Sort of, but the plan is to invest the money into a Vanguard index fund to try to beat inflation.

Dan_in_Dublin said:

Sort of, but the plan is to invest the money into a Vanguard index fund to try to beat inflation.

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The point is that you can avoid missing out on 2 x €3K this year (because the Vanguard account isn't ready) by just making a cash gift this year if necessary - and then investing it on their behalf next year along with next year's 2 x €3K.

ClubMan said:

The point is that you can avoid missing out on 2 x €3K this year (because the Vanguard account isn't ready) by just making a cash gift this year if necessary - and then investing it on their behalf next year along with next year's 2 x €3K.

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Yes, but my question is, what is the best way to do this, so that this year's €6k gift is unambiguously recorded as being made this year? I don't think Standard Life would accept a cash deposit. Then what? Lodging cash back into our accounts and then transferring funds to Standard Life in Jan may be construed as an obvious dodging of the rules for annual gifts. A bank draft might work, as that can be shown to have been purchased/withdrawn on a certain date. It's also likely that Standard Life would accept a bank draft. Otherwise, a children's Revolut account could be better, as the account would be in my son's name. Suggestions welcomed, many thanks.

Edit: spelling

The likelihood of you getting pulled up on this is miniscule so I would just create the paper trail (eg Revolut Junior) and argue, if necessary, that any subsequent move back into your account is simply to accommodate a bank transfer into a fund.

Worst case, Revenue judge that your child has used up 6k of their 400k CAT allowance.

Dan_in_Dublin said:

We will try to get the account opened and funded before the end of the year, but I fear we may have left it too late

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The reality is that it's not too late. It's just that you've left it late to start researching how to do it, and do it right. You're also limiting yourself to just one provider by choosing Vanguard.

On these contracts, I'm not a fan of not having a clear trail of the source account (in both donors names) of the money, where it ends up, and its intended purpose. The donor/s may not be around to help the recipient with the paper trail.

You could, in reality, request the paperwork today, complete and submit it ( including AML documents) , be provided with EFT details of the life assurance company to do a transfer of €6,000 to and start a direct debit for €500pm from 01/01/2025. The €6,000 would be invested from date of receipt by the life office. Job done, and policy documents issued to you in next 7/10 working days.

But, that's the execution only model where you don't need advice on knowing what provider to run with, the exact product to request the information on and the fund/s you want to invest in.