Give the next generation a head start

Views & insights

Your child could face significant financial challenges in an uncertain economic environment. Here are some ways to potentially transform their financial future..


15 July 2021 | 3 minute read

Your child or grandchild could face significant financial challenges in an uncertain economic environment, alongside high property prices and living costs.

Here are a few simple ways you could potentially transform their financial future.

Save into a Junior ISA

You can invest up to £9,000 into a Junior ISA (JISA) in the 2021/22 tax year. Dividends and growth within these accounts are tax free. While only parents or legal guardians can open a JISA, anyone can contribute – be they grandparents, godparents, or family friends.

The child can access money in a JISA at age 18, using this however they wish – perhaps towards university costs, or building a property deposit.

Make use of bare trusts

If you hold assets on behalf of a child in a bare trust there are no investment limits, and money can be used at any time for the child’s benefit, such as towards school fees.

Gains or income on investments held in a bare trust can use the child’s personal tax allowances, and the account can remain open beyond the child’s 18th birthday, although at that age they become legally entitled to access the money if they wish.

Pay into a junior pension

If you would like to give a child a head start for retirement saving, a junior pension is an attractive option.

You can save up to £2,880 a year – boosted by tax relief from the government to a maximum of £3,600 a year. Anyone can invest on behalf of a child into a junior pension, but only a parent or legal guardian can open the account.

Make a gift count

You can gift wealth you have accumulated over the years in several ways. Each year you can give away up to £3,000 which will not be subject to inheritance tax (IHT) when you die. You can also give £250 to any number of people each year, free from IHT.

It is also possible to make further tax-free gifts – known as ‘potentially exempt transfers’ – but you have to survive for seven years after making the gift for your estate to get the full benefit.

It can be tricky knowing when and how to give money to your family alongside securing your own financial future. A financial adviser can help you to build a tailormade plan to ensure you and your family have the financial security you need today and in the future.


The value of investments, and any income from them, can fall and you may get back less than you invested. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Information is provided only as an example and is not a recommendation to pursue a particular strategy. Opinions expressed in this publication are not necessarily the views held throughout Brewin Dolphin Ltd.

Tagged with

Are you on track for a secure financial future?


Start talking to us today about your future financial plan and we can help you make sure it is a resilient one.

Book free consultation

More on this topic

You may be interested in

Managing CGT through unitised funds

DFM business support 3 min read
Managing CGT through unitised funds

Investing in your 50s – four top tips

Investing 3 min read
Investing in your 50s – four top tips

How to stick to your plans when cash is tight

Financial planning 3 min read
How to stick to your plans when cash is tight