The Child Trust Fund – will it enable your offspring to buy a new car at 18 or will they have to settle for a second hand bike?

Your child could be entitled to a Child Trust Fund account if he or she satisifies a small number of requirements:

*Your child was born between 01 September 2002 and 02 January 2011 and

* You received at least one child benefit payment for that child before 04 January 2011

* Your child lives in the UK and is not subject to any immigrant restrictions

The money in the fund belongs to the child, and they can have access to it once they are 18. Parents, family and friends can pay into the account up to a total of £1,200 per year. If you are on low income or the child receives disability living allowance, the government may pay additional moeny into the account too.

There is no tax to pay on the fund or anygrowth it makes. When the child withdraws any money from the fund, it will not affect your benefits or any tax relief you get.

The Child Trust Fund is a very useful way to consider helping a young person start their adult life with some useful capital to help them buy a car, pay for higher education or anything else they choose to do with the proceeds.

For more details, talk to your Family First IFA.

Click here to send an eMail request for advice on Children's Savings Plans