CHILD TRUST FUNDS: INVESTING IN YOUR CHILD'S FUTURE

QUESTIONS AND ANSWERS

How long do you have to invest a CTF voucher?

The voucher you receive is valid for one year. If you do not open a CTF account before the voucher expires, HM Revenue & Customs will open an account and invest the voucher in their nominated stakeholder account on behalf of your child.

Can you change to a different CTF account after investing the voucher?

You have 15 days from using the voucher to change your mind. The voucher and any additional contribution made at the same time as depositing the voucher will be returned to you to invest elsewhere.

After these 15 days have lapsed, you will still be able to switch providers, but any money invested in the CTF account you originally chose cannot be taken out, except by your child on their 18^th birthday.

Can you make further contributions to your child's CTF?

Yes. A total of £1,200 can be added to each CTF account in each year of subscription. The subscription year runs from the child's birthday to the day before their next birthday.

Family and friends can also make contributions in the form of a one-off payment or via direct debit. They will need to contact the CTF provider directly and quote the child's name and reference number. This reference number will be required for each additional contribution to the CTF.

When will your child be allowed to access the money in their CTF account?  

Your child can access their money when they turn 18. The provider of the CTF will write to your child to inform them of how much money is in their CTF as at the date of their 18^th birthday. From that day on, the account will no longer be a CTF. The money will stop benefiting from the tax advantages.

Your child will have the right to use the money as they see fit. It is worth noting that, while the parent or guardian can influence how the child uses their money, the final decision rests with the child, who will then be an adult.