CTFs worth £2.4bn in future

The first group of children in Britain and Northern Ireland who have been eligible to set up a child trust fund (CTF) through a solicitor are looking at reaping around £2.4 billion in today's money when they reach 18, Children's Mutual estimates.

This money includes the £250 voucher that the government provides to start the fund as well as the tax-free interest accrued on this and the amount in top-ups that children receive through gifting.

The amount of money growing in trust funds is likely to see 18-year-olds in Belfast and Northern Ireland with an extra £9,500 cash on average as they start out into adulthood.

Children born in Belfast and Northern Ireland on or after September 1st 2002 receive a £250 voucher to start their account, which is often done through solicitors to ensure the best investment is made and kept safe.

After critics have claimed that upon hitting the age of 18, teenagers are likely to blow the money, an independent advisor claims that parents should take some responsibility for the investments they make for their child.

Phil Perry, a spokesperson for Ark Financial Planning Limited, said: "A CTF is something that, although there are specific policies available for children, if it has the child's name on it, it does mean that it falls into their possession at a certain time.

"[Parents] have a responsibility and a duty of care with their child to make sure that the fund attains the best growth that it can, although I believe there are a huge percentage of people who have just stuck theirs in a building society in a cash type fund."

Parents in Belfast and Northern Ireland should visit their solicitors to discuss what to do about their child's CTF and the best way to make the most of the tax-free account.

Contact us for legal advice