Grandparents Saving for Children

tonybraines

I wish to invest money for a grandchild that is in care and may be adopted. I do not wish to lose control of the investment - can anybody please advise

atush

You could open an acct in your name with them as the designee. But if they are adopted, won't you lose access to the child and not know where they are/their new name?

tonybraines

Thanks for your advice

My grandaughter is 9 and has been in care for several months and contact is made through Social Services. I appreciate the problems that can arise if she is adopted.

I have looked at Junior ISA's but only parents can take these out, plus the money automatically goes to the child when 18 which is too young.

I am looking for something where I can place a lump sum, then add to it over the years, but to have control, ie draw mony out should the foster parents or my grandchild should need it for a good cause, education for example.

Should I die before she is ogf an age to handle the money invested then the Trustees of my Will, will follow my instructions.

I am hoping that her whereabouts will be found through Social services.

ANYBODY OUT THERE who can recommend a product.

Reaper

You have not said whether you are looking for savings or investments. I chose the investment route using an Investment Trust called Baille Gifford, but there are plenty of alternatives along the same lines. You choose whether you want a Bare Trust or Designated depending on your tax situation and the amount of control you want over it.

Most schemes are designed to end by age 18 and hand the money over. Baille Gifford did at least let me pick the end date when I set it up as a Bare Trust (I chose age 21) but I am a bit dubious about the legality of that should the child decide to challenge it.

Bank savings accounts for children also often have the option to run them as "Designated" accounts too which allows you to keep control.

sabretoothtigger

Sounds like an unfortunate case, you should make sure the kid knows the rough details of the bank with their account before they are possibly lost in the system. I would not presume social services will allow contact or communication even

I think shares and unit trusts can be held in the name of a child though minors cannot own or control these directly before 18

http://www.rbs.co.uk/personal/investments/g3/guides-to-investing/guide-to-investments-for-children.ashx

jackyann

I have asked for advice here in the past and found this:
http://www.familyinvestments.co.uk/junior-bond/how-we-invest/
Haven't taken it out yet, so it's not a recommendation, just a suggestion. You could also take out a bond with say, NS&I (ie: tax-free) in your name and write into your will that it is to go to your grandchild, should you die before you are able to gift it to them.
However, this is a difficult situation and I think you are wise to keep control of the investment. I have known situations such as this and they can be fraught. In one, the child was very sensible and grateful for the money from his grandparents. However, his adopted siblings, who until that point, were just all the same, were now placed in a less advantageous position; and it was awkward.

You may find Coram's Children's Legal Centre helpful: they are a charity with great experience of adoption and indeed pioneered "open adoption" where children kept in touch with relatives.
I have also found the Post-Adoption Centre very helpful in matters affecting relationships, I don't know if they can help with financial matters.

tonybraines

Thanks - should be very helpful indeed

tonybraines

Thank you to all who have offered advice upto now.

Any further advice would be welcomed

lisyloo

I am hoping that her whereabouts will be found through Social services.

I don't believe you have any right at all to find an adopted child.
Whether money could be passed on I don't know.
It's up to the child whether they want to re-establish contact at the relevant age.

phred

I have opened ISA accounts for my grandchildren but they are in my name.
I have made a will and left named accounts to them.

This gives me control over the accounts, (unless I die :eek:), I can add to them if I wish and I can change my mind if the kids turn out to be wasters.

jimjames

jackyann wrote: »

I have asked for advice here in the past and found this:
http://www.familyinvestments.co.uk/junior-bond/how-we-invest/
Haven't taken it out yet, so it's not a recommendation, just a suggestion. .

Personally I would avoid any friendly society plan such as this. They are expensive with high charges, inflexible with fixed terms and amounts and do not allow you to start and stop at will.

In contrast an investment trust plan will allow any number of lump sum payments, variety of investment choices, low cost and can start and stop monthly payments at any time. I use various ones and have found them very flexible.