£10k invest/save for grandchildren?

Camper2

I want to put £10k away for the grandchildren (ages 10, 8, 6) and that money is in Unit Trusts (in ISA wrapper) in my name at present.

1. Can I transfer it to the children as a joint holding for the 3 of them?
2. Will they get tax relief on that money?
3. Should I separate the money into 3 lots and invest individually?
4. If so - will each child have to pay management charges?
5. Should I invest as cash and not stocks and shares?

Any ideas will be most welcome!

xylophone

Do your grandchildren have CTF/JISA? (CTF will be transferable to the more flexible JISA from next April.) http://www.familyinvestments.co.uk/family-nest/guides/transfer-ctf-to-junior-isa/

You could sell the units , divide the proceeds into three and gift the money into CTF/JISA.(You would need to keep within JISA limits - currently £4000 per year.)

Otherwise you might consider selling the units and setting up a bare trust in an investment trust for each child?

Example http://www.bgchildsavings.com/pages/how_to_invest.aspx

Remember that assets in a bare trust will belong to the beneficiary absolutely and are taxed as his. The beneficiary has the right to access and control at the age of majority.

Otherwise you keep the assets in your name and make the gift at a time of your choosing - it then remains within your estate and is taxed as such.

You would insert a bequest of the investment to your grandchildren in your will in case you died before being able to make the gift.

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

jimjames

For item 5, personally I wouldn't use cash, all our children's savings are in stocks and shares.