Saving for the grand children

dragonnet

Hello everyone just registered am not sure i'm in the right place but here goes, i'm actually looking for some kind of savings plan that i can deposit money into when ever i can, so not one where i have to put in the same amount on a regular basis and also on my death leave a cash amount to be deposited into that account so the grand children can have a little sum which i also would like them or any one else not to be able to touch until they are either 18 21 or 25 if any one knows of which or where i should be looking would be a great help,thanks in advance

atush

Anything put in their name would their property and they could have access at a younger age than you want- look at Junior ISAs (if they don't have Child trust funds). If they do have CTFs, make a lump sum payment.

xylophone

http://www.hmrc.gov.uk/tdsi/children.htm take note of the R85 requirements and of what happens when a child turns 16.
You do not have to use accounts specifically for children. I am assuming that they are all under 18 at the moment so if you want to save in an account with you as Trustee you simply need to check whether the account you favour will accept a "re" or Trustee designation.
http://moneyfacts.co.uk/compare/savings/accounts/search/

It is difficult to keep control beyond the age of 18 and usually requires something more than a bare trust.
http://www.lawdonut.co.uk/law/personal-law/family-trusts-and-inheritance-tax/trusts-for-children-and-other-family-22-faqs
http://www.investmentguide.co.uk/sg-tex11.htm

dragonnet

Thanks for your replies i think they did receive child trust funds i would have to ask my daughter in law but not sure if she has already used them to set up a savings plan herself, they are all under 7,i will have a look now at the links xylophone, thanks again

savingmummy

We have CTF`s where people can add to that as and when they can, and we`ve have just opened an ISA (junior) for our children they can`t touch them until they are 18, account goes into their name once they turn 16.

atush

I think you can't have both a CTF and a JISA for the same child?

xylophone

savingmummy wrote: »

We have CTF`s where people can add to that as and when they can, and we`ve have just opened an ISA (junior) for our children they can`t touch them until they are 18, account goes into their name once they turn 16.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672


"Who can have a Junior ISA
Your child can have a Junior ISA if they:
are under 18
live in the UK
are not entitled to a Child Trust Fund (CTF) account
Your child can’t have a Junior ISA if they already have a CTF account."

dragonnet

hello again, from what i understand if they have a child trust fund which i believe they will from their ages they cannot have a junior isa too, but i would like to have a savings plan for them preferably with no one knowing about it only my husband and myself, so that can be wrote in the will and when the time comes only then they would and their parents then know about it, so i am looking for something i can organise with with really only me my husband the solicitor and who ever i am going to open a savings plan with. thanks once again for your replies

xylophone

As far as I know if you propose opening accounts with you/your husband as Trustees of a bare trust for each child what you propose is not feasible.
A bare trust is a very simple form of trust, where one or more trustees (also referred to as a nominee) passively holds the assets for the beneficiary. The beneficiary is entitled to both capital and income, and to take possession of the assets when they like – provided the beneficiary is legally capable (ie of sound mind and aged 18 or over). http://www.lawdonut.co.uk/law/person...mily-22-faqs#4

http://www.hmrc.gov.uk/trusts/types/bare.htm
"Bare trusts are commonly used to transfer assets to minors. Trustees hold the assets on trust until the beneficiary is 18 in England and Wales, or 16 in Scotland. At this point, beneficiaries can demand that the trustees transfer the trust fund to them."

See also http://www.hmrc.gov.uk/tdsi/children.htm

Otherwise you are looking at a much more complex Trust arrangement which you will have to discuss with a solicitor experienced in Wills and Trusts - see link to HMRC site above.

The only other thing you might do is regard one or both of your ISA accounts as "earmarked" for your grandchildren and leave the monies therein to the children in your wills, but of course you would need to have regard to the IHT considerations.

Expert advice tailored to your situation seems called for.