saving for children as grandparents

catfreak147

My husband has a grandson who is 4. For around 3 years the mother of the child has refused contact with us. We know that presents we send are not given to the child and cheques are never cashed. We would like to make some contribution to his life as he grows up, but have to accept this may not happen. We thought about setting up a savings account in his name, in the hope that one day he could have the money and use it as he wishes. We would put the same amount of money into it (xmas, birthday etc) that we would spend on the other grandchildren. Any ideas?

xylophone

I assume that the child is a non-taxpayer - if you want to open an account for him or in trust for him a parent would need to sign the R85.
There are also issues around the R85 when the child becomes 16 - see
http://www.hmrc.gov.uk/tdsi/children.htm
Presumably your son is still in touch with his child and could set up a bare trust account for him - if he supplied you with the number and sort code of the account, you could make direct payments to the account as and when you wish.


http://www.money.co.uk/savings-accounts/childrens-savings.htm