Child Trust Fund - Frequently Asked Questions (FAQs)
Can my child have a Child Trust Fund?
How much will my child get?
When will I receive my Child's Child Trust Fund voucher?
How do I open a Child Trust Fund?
Who can pay in to a Child Trust Fund?
How can I pay into a Child Trust Fund from Liverpool Victoria?
Children won't be able to look after their Child Trust Fund so how will it work?
What happens if I don't open a Child Trust Fund account within 12 months?
Can my child's Child Trust Fund be accessed early?
What happens at age 18?
What if my child was born before 1st September 2002?
Can I cancel or transfer the Child Trust Fund?
Can my child have a Child Trust Fund?
Your child can have a Child Trust Fund if they were born on or after 1st September 2002, Child Benefit has been awarded for them and they are living in the UK.
How much will my child get?
They will receive a voucher from the Government worth at least £250, to invest into a Child Trust Fund account. The amount could rise to £500 for families who receive full Child Tax Credit. You must use the voucher to open an account within 12 months of the issue date.
When will I receive my Child's Child Trust Fund voucher?
You should receive the voucher shortly after the first child benefit claim has been processed.
How do I open a Child Trust Fund?
First you need to choose who is going to be the Registered Contact. The Registered Contact is the only person who can open a Child Trust Fund or tell the Child Trust Fund Provider how to look after their child’s money.
A parent or person with parental responsibility (a legal term meaning someone with the rights and duties of a parent) for the child can be the Registered Contact.
Next, choose which Child Trust Fund provider to invest with from a range of approved providers.
Once you have chosen, send the voucher and an application form to that provider who will set up a Child Trust Fund account for the child.
Who can pay in to a Child Trust Fund?
Parents, relatives, friends (in fact anyone) can pay in gifts up to an overall total of £1,200 each birthday year. Once the gifts are paid in, they cannot be returned to the donor and will be invested until your child reaches 18. The Government has also confirmed it will make an additional contribution of £250 at age 7 (£500 for families who receive full Child Tax Credit).
How can I pay into a Child Trust Fund from Liverpool Victoria?
Children won't be able to look after their Child Trust Fund so how will it work?
On the application, a parent or guardian will sign a declaration that they will become the Registered Contact for the Child Trust Fund and then will have responsibility for looking after it. At age 16, the child will become the Registered Contact for the final two years, giving them an opportunity to ‘be involved’.
What happens if I don't open a Child Trust Fund account within 12 months?
If an account is not opened before the voucher expires at the end of 12 months, HM Revenue & Customs (HMRC) will automatically open a Stakeholder Child Trust Fund with a provider on the HMRC list. In this situation you would have no say as to which Child Trust Fund provider would be used.
Can my child's Child Trust Fund be accessed early?
What happens at age 18?
The Child Trust Fund will mature when the child reaches age 18 and the fund will be paid to the child unless they specify otherwise. There will be the option to roll over the funds into an ISA if required.
What if my child was born before 1st September 2002?
If your child is not eligible for the Child Trust Fund there are other ways to save. For example, we offer a Tax Free Savings Plan into which you can save £25.00 per month.
Can I cancel or transfer the Child Trust Fund?
Once the Child Trust Fund is opened it can not be cancelled however you can transfer to another Child Trust Fund either with us or with another provider. You can also transfer a stakeholder or non-stakeholder Child Trust Fund from another provider to us.
