Child trust funds are a long-term savings plan, an ideal investment for a parent for their children. It applies for children who were born from September 1st 2002 to January 2nd 2011.

A child trust fund is an account where parents deposit money and they cannot withdraw until the children reach the age of 18 years. Eligibility of a child to the child trust fund is subject a number of factors listed below:

•The child must have been born between the dates given above.

•The child must be a UK resident

•The parent must be a receiver of the child benefit that is given to parents in the UK

•The child must not be subject to any restrictions from the immigration control

There are a number of cases that are considered specially. These are mainly those that the child was born between the required dates but the parents do not live in the UK. If such children were born to parents who are serving in the UK ministry of defence, then they are eligible for the benefit. Another special case where the child trust fund benefit is awarded is when the parents of a child are nationals of the European Union, working in the UK but their children remain in their country of origin. Such children are eligible for the benefit. This benefit is guaranteed by the EU registration that allows resident members to get benefits of the country they are working in. However, the UE legislation is just for people within the region. If a parent has a child who was born within the required time but works abroad, their children are not eligible for the fund. However, if a child lived in the UK and moved abroad, they can still continue contributing since it is possible to contribute to the fund from abroad.

In a case where child was born after September 1st 2002 but left the country before the trust fund was launched on April 6th 2005, they are not eligible for the fund unless they return to the country and claim it. When they claim, they are given a voucher. Eligibility for the benefit is not automatic. It is only given to those who claim it.

In the UK the child trust fund providers of the fund are financial institutions that are approved by the revenue and customs department after having met the set requirements to become child trust fund providers. The providers are required by the UK legislation to give stakeholder accounts. They are also the people who are supposed to relay information to the citizens about the funds. The providers serve under the watch of the UK government. This is because they cannot sustainable run the funds and parents are advised that they should always choose the provider that they trust and feel are capable of managing their funds. There are a number of financial experts and consultants who give advice on the best financial providers to choose for the fund. However, these are likely to charge a fee.