Is there a reasonably safe, tax effective, long term investment
option for children that a trust can invest in?
Q.
Is there a reasonably safe, tax effective, long term investment
option for children that a trust can invest in? One where no
interest is paid until the investment matures in say ten years time
to avoid having to deal with annual tax return issues?
A.
The perfect investment is an insurance bond. Because the income
accrues in the form of bonuses there is nothing to declare on the
investor's tax return each year and after ten years they can be
cashed in tax free or left to keep on growing. Furthermore, when
deemed appropriate they can be transferred free of capital gains
tax to another person. Your financial advisor will help you choose
what is appropriate for your situation.
Each week financial advisor Noel Whittaker answers your
questions.
