How to Open a Child Trust Fund
In the United Kingdom, children born between September 1, 2002, and January 2, 2011 are eligible for a long-term tax-free savings account known as a Child Trust Fund. One requirement for the trust fund is that the child must be the recipient of a "Child Benefit" voucher that will be deposited into the account once it is opened. Another requirement is that the child is a citizen of the United Kingdom. A final requirement is that only government-approved account providers may be used. Knowing the proper protocol for establishing a Child Trust Fund can save you time and frustration.
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Instructions
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Fill out a "Child Benefit Form" and send it along with your child's original birth certificate to: "Child Benefit Office (Washington); Freepost; NEA 10463; P.O. Box 133; Washington; NE38 7BR." Once the form is read and approved, the Child Benefit Office will send you a voucher for £50 or £250, depending on your child's age and when they became eligible for a Child Trust Fund.
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Select an account provider for the fund by opening your web browser and navigating to the "Child Trust Fund: A-Z of All Account Providers" sub page of the Directgov site, www.direct.gov.uk.
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Fill out the provider's application form or apply over the telephone and send the voucher to the branch or location to which you are directed by the provider.
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Tips & Warnings
All child born on or after 1st September 2002 will receive a voucher to open a child trust fund
All children regardless of income level will receive a CTF voucher. All savings in a child trust fund are tax free If you are a low income family (joint income below 15,575 pounds) you will receive and extra 250 pounds to invest. All children receive an extra 250 pounds to invest when they reach the age of seven.
References
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