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Setting Up A Savings Account for a Child
notsowiseoldowl
Posts: 1 Newbie
My step daughter has just given birth to my darling new grandaughter (she's now 2.5 months old), and I would like to set up a savings account for her as part of her Christmas present.
The problem is my step daughter is not very trust worthy and I do not want her to have any control and more importantly access any of the cash we put away for her daughter.
I had originally thought of of NS&I child bonds, but they appear to have changed their rules since 09/12, so the parent now has control (My parents bought them for my daughters, and the bond info was always sent to my parents not me).
At moment the best I can come up with is a joint account in my partners and my name and attaching a codicile in our will that that account is left to her in it's entirety, just in case we don't make it to her 18th/21st birthday. Although this seems a very messy way of going about things not to mention expensive as we will not be able to effect an R85.
If anyone out there can think of a cleaner, better and more tax effiecient way of protecting these savings, I would be both interested and grateful.
The problem is my step daughter is not very trust worthy and I do not want her to have any control and more importantly access any of the cash we put away for her daughter.
I had originally thought of of NS&I child bonds, but they appear to have changed their rules since 09/12, so the parent now has control (My parents bought them for my daughters, and the bond info was always sent to my parents not me).
At moment the best I can come up with is a joint account in my partners and my name and attaching a codicile in our will that that account is left to her in it's entirety, just in case we don't make it to her 18th/21st birthday. Although this seems a very messy way of going about things not to mention expensive as we will not be able to effect an R85.
If anyone out there can think of a cleaner, better and more tax effiecient way of protecting these savings, I would be both interested and grateful.
0
Comments
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A junior isa might meet your needs. The money becomes the property of the child at 18 and cannot be used by the parents.0
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A junior isa might meet your needs. The money becomes the property of the child at 18 and cannot be used by the parents.
Only a parent or guardian open one though, and they are in charge of administering it until the child is 16.
There's also the fact that the money is released to the child at 18 to do what they want with, perhaps not the best age to get a decent sized sum of money! The only real benefit is the tax free status.
OP, I'd put the money in a longer term investment product in your name, so that you can hand it over when you feel the time is right. Have you read the savings articles on this site?0
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