Lump sum saving for grandkids

mike88

I wish to invest a one off lump sum for my grandkids aged 3 years and 3 weeks.

Their parents are saving for them as well.

My intention is to invest in an Emerging Market Unit Trust on the basis that in 18 years time it might be worth more than a regular building society savings account. I want to keep control of it in case the parents who are conservative investors will cash it in for a low risk investment.

I do not think kids under 18 are able to hold unit trusts so what is the best way of investing?

Lokolo

If you aren't using your ISA allowance for Stocks and Shares, use this.

dunstonh

A unit trust with a designation for the child along with a record of a gift (for IHT purposes) should do the trick. You remain in control of it and it doesnt get passed to the child until they are in their early 20s or if you prefer it earlier. it can be cashed in and given to them as cash or transferred to them to continue if they wish.

McKneff

dunstonh wrote: »

A unit trust with a designation for the child along with a record of a gift (for IHT purposes) should do the trick. You remain in control of it and it doesnt get passed to the child until they are in their early 20s or if you prefer it earlier. it can be cashed in and given to them as cash or transferred to them to continue if they wish.

Hi dunstonh, for the uniniated, how do i go about getting one of these.

dunstonh

If you want advice, use an IFA. If you are happy to DIY then Hargreaves Lansdown will do unit trusts outside of an ISA. On the application form it asks you for the designation and thats where you put the childs name. When you get the confirmation you just create a paper record that the contribution was made in xx/xx tax year as part of your gift allowance and keep it with that. There is no formal forms for that. Its just a record signed by you. Some places will have a certificate or similar to "flash it up" a bit.

SensibleSi

Hi, I'm also thinking about saving long term for my kids.

Can anyone tell me the difference between a child-oriented investment trust and a unit trust?

I'm aware of the structural differences but I can't find anything that clearly describes the benefits. Are there differences in how much I can invest, potential risks, charges or returns?

I appreciate it may be a tricky one but I'd be grateful for anyone's insights.