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Whether you’re a parent, grandparent, godparent, or just someone who wants to give a child a great start in life, you’ve probably thought about putting money aside for them.
It might be for their college fees, a first car, or even a deposit for their first home — and while saving is always a good idea, how you do it can make a big difference in the long run.
That’s where Aviva’s Children’s Investment Trust comes in. It’s a clever way to invest for a child’s future — while staying tax-efficient and keeping control until they turn 18.
What Is Aviva’s Children’s Investment Trust?
This is a long-term investment set up through a Bare Trust. You put a lump sum into an Investment Bond, and it’s legally set aside for the benefit of a child under 18.
You stay in charge as the trustee, and the child gets access when they turn 18. It’s a smart way to gift a sum that can grow over time — and it might even avoid a tax bill.
Why Choose This Over a Regular Savings Account?
You’ve got options when it comes to saving for a child, but here’s why this one stands out:
You’re Giving It the Chance to Grow
Rather than letting the money sit in a deposit account earning minimal interest, you invest it in funds with the potential for growth over the years.
It’s Tax-Savvy
One of the biggest wins is the Capital Acquisitions Tax (CAT) treatment. In Ireland, each child can receive a certain amount tax-free (currently €40,000 from a grandparent or €400,000 from a parent).
Here’s the key bit: the investment growth doesn’t count toward that tax-free limit.
Example:
Let’s say you invest €40,000 for your grandchild. Years later, it’s grown to €83,000. The €43,000 gain doesn’t count towards CAT, so there’s no tax to pay. That’s more money staying in their pocket when they need it most.
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You Stay in Control
You choose where the money goes, how it’s invested, and you can track performance or switch funds along the way. You remain in full control until the child turns 18.
The Money’s Protected for Them
Once the trust is set up, the money is legally theirs, but they can’t access it until they’re 18. That gives you peace of mind that it’ll go towards something meaningful, like education or a first home.
Can Anyone Set This Up?
Yes — it’s not just for parents. Grandparents, godparents, aunts, uncles, or even close family friends can set up an investment trust for a child under 18. It’s a meaningful way to pass on wealth and support their future goals. Just keep in mind the Capital Acquisitions Tax (CAT) thresholds — gifts from parents fall under one group, while gifts from others fall under a lower threshold. Staying within these limits can help you give generously without triggering a tax bill.
What You Need to Know Before You Set It Up
Like any financial decision, there are a few things to be aware of:
- Once you put the money into the trust, it belongs to the child — you can’t take it back.
- The child must be under 18 when you set it up.
- There’s an exit tax and a 1% life assurance levy — but Aviva takes care of these for you.
- The trust must be registered with Revenue under anti-money laundering rules.
When This Might Not Be Right for You
This might not be the right fit if:
- You want to keep access to the money for yourself.
- You’re not ready to make a permanent, non-reversible financial gift.
- The child is already over 18.
- You want the option to change the beneficiary down the line.
So, How Do You Get Started?
It’s simpler than you might think. You’ll sit down with one of our financial advisors who can guide you through:
- Setting up the trust
- Choosing the right funds
- Registering everything with Revenue
- Managing the investment online going forward
Once it’s done, you’ve created something really meaningful — a gift that can grow with the child.
Get a Savings & Investments Quote
Get a Savings & Investments Quote
Thinking about investing in your child or grandchild’s future? Our financial advisors can help you explore your options and find the right fit for your goals.
At True Wealth, we’ll explain everything clearly — no jargon, no pressure. You’ll get advice that’s tailored to your goals, your risk level, and your budget.
Want to learn more? Aviva’s Children’s Investment Trust guide gives a clear overview of how it works, who it’s for, and how it can help you make a lasting, tax-efficient gift.
Get in touch today to talk about setting up a Children’s Investment Trust or to explore your other savings and investment options.
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All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
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