saving for grandchildre

jackyann

I put this on the "saving" forum, and no response, so am trying here!
First grandchild is due soon, and we would like to start some savings.
I do appreciate that a lot of people here are not in a position to put much aside, but the principle remains, whether it's £10 or £10k, so advice weldomed.
Saving in the child's name (and Junior ISA will be in by then) means they don't pay tax (unless they become prodigies, unlikely!)

However, we have an above-average-number of children and not a clue how many grandchildren we might end up with! So we can't give a great deal to #1 and find ourselves with nothing for #whatever.
We are reluctant to set up a regular saver account for the same reason. Also, we have some capital now that can be used - who knows about the future?

Maybe we could buy NS&I bonds or certificates with the intention of sharing them out among grandchildren?
Or maybe we could put into Junior ISA for #1, then when/if #2 comes along, stop paying into #1 whilst we even up? Might still end up unfair, depending on numbers & gaps between.

Thanks for considering. PS: can't edit thread title, so apologies for the missing "n"

make_me_wise

Why not set up an account just in your names for now and have it as the 'grandchildrens' account. The higher the amount in one account the more interest it will make you. You could set up a 1 year bond. That way its not tied up for too long. In 2 or 3 years time when there might be more grandchildren on the scene you could split it evenly between them. Add into it at birthday and xmas times. Doesn't have to be huge amounts. It soon all builds up. Congrats on your impending first grandchilds arrival, you must be so excited.

My in-laws are looking forward to the arrival of our twins in January next year. They will be their 7th and 8th grandchildren, though our first. All they are saving for is a long holiday to get away and have some peace. To be honest I dont blame them, lol!

mountainofdebt

Would agree with what make me wise has said.

Unless you are prepared to do it for all grandchildren then I would advise you don't do it for any of them.

My Sister's PIL have openly said that the eldest grnadchild is their favourite for the simple reason that he is the eldest. Fortunately the others are too young to appreciate the differing treatment but it won't be long before they do

Newly_retired

I have four grandchildren under 10 and it is not easy to keep things even but regardless of any savings for them, I have left them equal amounts in my will.
Meanwhile, starting with #1 I began a savings account but when the rates dropped I withdrew it to my own a/c and am now transferring it month by month to a Regular Saver at 6% with Halifax for each child. When that matures I think I shall put it into NS &I, if their index linked certs are still open at that point.Hope this helps.

marywooyeah

Presumably your daughter/son will set up a trust fund for the child? could you just have a £10 a month payment direct debit set up so you are contributing but its not such a big amount that you wouldnt be able to help the next grandchild.

you say you have an above average number of children, do you mind if I ask how many?

Savvy_Sue

Do you want them to get the money on an ongoing basis, or hang onto it until you die and pass it on then? Either way, I'd set up one pot - I think Halifax let you have different 'jars' within an account if that would help, I never really got my head round that one! - but if you want them to get it after your death, then you need to get that into your will.

donteatthat

I'm not sure that the child trust funds are available now but there is going to be a junior isa instead.

CH27

I would open one account & save in that.
The balance can be split between however many grandchildren you have at your death or a specified date.

marywooyeah

donteatthat wrote: »

I'm not sure that the child trust funds are available now but there is going to be a junior isa instead.

oh I didnt realise they weren't I'm sorry, I have a three year old and he has a child trust fund so didnt know they had changed.

Beckyy

I agree with one account and save when you can, then split it at an appropriate time. That way there's no struggling to give each child so much, or match ammounts between children.

Savvy_Sue

Beckyy wrote: »

I agree with one account and save when you can, then split it at an appropriate time. That way there's no struggling to give each child so much, or match ammounts between children.

Of course one argument against that which the OP must consider is that the money remains yours until death or such time as you decide to share it out.

However much you want to regard that account as 'for the grandchildren', if you ever need means-tested benefits (like Pension Credit), or residential care, that money is YOURS for the purposes of those calculations.

Nor can you suddenly divide it up if the situation is looming on the horizon, because THAT would be 'deliberate deprivation of assets'. And the money may even be needed to pay for your care.

If the account was opened in the child's name, with you also named, then you might get round that, but that brings you back to the 'how do we make it fair when we have no idea how many there might be?' situation.

Having said that, 'fair' isn't always achievable. No it wouldn't be 'fair' if you'd regularly put even £5 a month away for 5 years for one of them, but couldn't afford to do so for the next 25 (grandchildren). Sometimes children have to learn that life's not 'fair', and if, for example, more arrive after your death then it's not that you wouldn't have loved them, but you didn't know they were coming!

So this might be something to consult a solicitor about, especially if you intend to leave this in your wills. I think there are ways of putting money 'in trust', and if you do that you can specify that it's divided up in X years' time, where X gives enough time for all the grandchildren to have finally arrived, even if that's after your death.