JISAs

Question 1

Benefits of JISA

Answer 1

Benefits:

• Tax free growth
• Tax free income
• doesn’t count towards David and June’s isa allowance
• range of funds to meet atr
• gift our of normal expenditure so immediately exempt for IHT

Question 2

Drawbacks of JISAs

Answer 2

Drawbacks

• children have right to choose investments at 16
• children have right to funds from 18/ David and June lose control of money
• children may not go to university
• Limit to how much can be invested
• minimal impact on reducing the estate