The main disadvantage of a Junior ISA is that your child will get free reign over all of the money at 18. Parents who are struggling to decide if they will trust their future kid’s responsibility and resolve may want to consider alternatives. And that’s totally fine.
You may not be using all of your own personal ISA allowance of £20,000. So, you could consider investing some money for your child within your own tax-free wrapper. Adults can have both a Cash ISA and a Stocks and Shares ISA, so there is plenty of choice.
Then, you can then gift the money to them at a time you feel is right, whenever that may be. You don’t even have to gift all of the money in one go. The point is, you have control.
In this scenario, the drawback is that you consume your own personal allowance. However, if you are already putting in far less than £20,000 then this may not be necessary to consider. Remember, ISAs are Individual Savings Accounts. If you are a couple, you each get a £20,000 allowance.
The downside is that if something happens to you as a parent, without a will, your money may not end up in your children’s hands. A will can easily be set up to cover these occurrences by using an online will writing service.