Gifting money to a child (not my own)

jayencee

I would like to give money for Christmas to my two nephews, both young children, for them to have access to at, say, 18. I was thinking of premium bonds but it seems that these have to be held in the name of the parent. Does anyone have any other ideas rather than just giving the cash to their parents?

Landvoigt

Tricky. How is your relationship? I mean between the parents and you.

jayencee

It's ok, just would rather them not be able to use it for themselves lol

Reaper

The easiest option is a Junior ISA. You would have to involve the parents though the money would be safe - the parents could not spend it if that is a concern.

Otherwise invest it in a "Bare Trust". You nominate a couple of trustees to administer it until the child comes of age. You may need to inform the child/parent at some point though as the money counts as the child's for tax purposes, so if the child earns enough to breach the tax income tax limit the income from the Bare Trust becomes taxable at the child's rate. Unlikely in most cases though.

GingerFurball_2

If your nephews have a Junior ISA or Child Trust Fund then just pay into that.

jayencee

I will have to speak to the parents about that one, thanks