Childrens savings without access til they are 25

Matt17

Are there any savings accounts or investments where I can invest a lump sum now and that the children who are 8 and 5 wont be able to access until they are 25?

xylophone

Who is providing the capital, parents or others?

Matt17

Grandparent

xylophone

And under what circumstances is the capital being provided - for example, gift or legacy?

If a legacy, what are the precise terms of the will?

Matt17

It will be a gift

xylophone

It looks as if you will need a discretionary trust with the grandparent as settlor and perhaps you and the grandparent/another relative as trustees.

http://www.hmrc.gov.uk/trusts/types/discretionary-accum.htm

With so long a time scale, you might wish to consider stock market investment.

Example http://www.hl.co.uk/investment-services/fund-and-share-account/faqs has information about setting up a trust account.

The alternative is to use a bare trust for each child but be aware that the child would then have the absolute right to access and control at the age of 18 (16 in Scotland).