helping with a child's education

[hlf2888]

I have had the same caretakers for the last 5 years and I have grown fond of their daughter who will be 6 soon. I want to help her get a good education. How can I gift her with the education money yet not let it be accessible before she is 18? I do not want to put it into a will.

Is there some sort of insurance policy, annuity, long term deposit where the account holder can not access the funds before 12 years?

[Gloria]

I have had the same caretakers for the last 5 years and I have grown fond of their daughter who will be 6 soon. I want to help her get a good education. How can I gift her with the education money yet not let it be accessible before she is 18? I do not want to put it into a will.

Is there some sort of insurance policy, annuity, long term deposit where the account holder can not access the funds before 12 years?

Very nice of you. I think it would be a good idea to approach a bank, get an "ejecutiva" to guide you in the matter. I'm not familiar with the banking system so I cannot help you much.Sorry.

[tiagoabner]

Although I'm a finance professional, I don't work in Chile or with Chilean banks. However, the same basic guidelines should apply.

Gloria's advice is perfectly correct: approach your financial advisor, lawyer or, barring that, the "ejecutiva" at your local bank branch. They will easily be able to provide you with the best setup for this. This kind of fund is done through a long term deposit that is connected to an ETF to garner interest through the period.

[admin]

How "good" an education are we talking about here?

Harvard Medical School or just make sure she can read and write by the time she graduates?

How ever you do it, the funds are going to need a custodian of some sort; and preferably, one that the parents, the uncle, the whatever can not drain for other purposes.

[Rhodolite]

I have another thought. Some professional educators believe that the quality of a child's primary education is more important than her university education. If you do not require 12 years for your gift to grow, perhaps you would enjoy giving her the experience of a better primary education. That may help her get into a free, quality school similar to Liceo Bicentenario Zapallar (Curico).

http://www.liceozapallar.cl/REGLAMENTO% ... 202017.pdf

[Gloria]

I also have some information for you. Banco Estado has 2 savings accounts ( cuenta de ahorros) named "Cuenta Ahorro Niños" and "Cuenta Ahorros Estudio Seguro". Here's the link.http://www.bancoestado.cl/imagenes/_per ... ahorro.asp
With this information you can go to the bank and ask for details.