I have recently been looking into investment funds for our two year old, something we would put about $30 a week into for around 18 years to build some cash for her to use on something we find appropriate (education, house deposit etc).

The dilemma I face is the options I have for this -

1 - Setting it up in my child's name would give the lower tax rate of 10.5%, but she would have control of the money at 18 years old, something I don't like the idea of.

2 - Setting it up in my name would mean I have full control and can give it to her when she needs it for something important, but I would pay the higher tax of 28% on returns, which would make a fair difference to the amount earnt over 18 years

Trying to decide which way to go I have considered a couple of other options, but I know very little about them and possible implications

1 - Setting it up in her name to have the lower tax rate, withdrawing the money when she turns 17 and putting it into an account with my name. This would give the benefit of a low tax rate for 17 years and maintaining control of the funds when she turns 18 (at the cost of starting to pay 28% on returns which I am fine with as it would only been a few more years until she ideally bought a house or something with the money) 

2 - A couple of people have suggested setting up a trust, all I have been told about this is that I could stipulate when and how the funds are used? can anyone elaborate on this? for example, would I still set up a managed fund in her name and have that transferred to the trust somehow? can I make the conditions very simple and just say the money can be used for what I think is good? and can I change these conditions later? lastly, what would it roughly cost to have a trust set up for this? I am wondering if it would cost more to implement and manage a trust  than the amount of extra money I would pay in tax by having the managed fund in my name at 28% for the whole life of the fund?