Accounts for under 21's 23 July 2004 at 4:19AM edited 7 April 2010 at 11:49PM in Savings & Investments 7 replies 2.5K views

Paul_Varjak

Post deleted

rinoa778

I think you can only buy Premium Bonds in someone else's name if they are 16 or under.

System

how old is she??? cant you put the money away in a high interest savings account in your name for x years and when its her 21st just hand over the money into her account.. (hand the bank balance reciept in a b/day card written by her gran should do it)

isasmurf

Depending on your daughter's age you might be able to open an account and nominate a trustee. You can certainly do this for young children, but I've not seen anything for children over 16. If you don't get an answer here, it'd be best to speak to a few banks for some options.

Paul_Varjak

RINOA:

Thank you!



OTHERS:

Mother's granddaughter is aged twenty.

Had thought about opening an account in her parents' name but that would mean that tax is paid on it. However, it is possible to open an account in mum's son-in-law's name only as he works at sea and does not pay UK tax.

Fatboy_NSS

Unfortunately I really don't think this is possible. If she wants the gift to be tax free then she has to give it direct to her granddaughter. If the account is opened in anyone elses name then the taxman would treat it as a gift to them rather than to the granddaughter, which would remove the tax break.

I think the best option would be for your mother to put the money into a fixed term savings account in her granddaughters name. The granddaughter would have to know about the gift as she would have to sign to open the account, but then once the money was deposited she wouldn't be able to access it until the term of the account expired (ie until after her birthday).

Paul_Varjak

Being tax-free is not a problem as brother-in-law is in merchant navy so he has no UK Income Tax. But he still has a UK tax allowance that he can utitlise by putting investments in his name temporarily.

Fixed term account! Had not thought about that! I would prefer her to have the account in her name. She is just starting her sandwich year so should not need the money anyway. A one year account should do fine! Just hopes she is sensible enough not to cash it in and lose interest!

ohit

Why not write it in her will to pay granddaughter £3k on the day of her 21st birthday??