Saving for the Grandchildren

justme111

Sorry was not clear to me in who's name it is. If it is in child's name then they would have control over it at 18, would not they ? Is not it the same as bare trust?

jimjames

justme111 wrote: »

Sorry was not clear to me in who's name it is. If it is in child's name then they would have control over it at 18, would not they ? Is not it the same as bare trust?

It's in the parent's name but listed as RE: Child name. Parent has full control over the account and can choose when to release funds. It's not the same as a bare trust but I'm sure someone else can explain better what the difference is.

justme111

Bare trust is released to a child automatically on 18th birthday i think. Si yours is just an investment account which is taxed as if it was yours and part of your estate? Is it treated in any way differently because it has child's name on it ?

Bufger

I was looking at the same for my children. My criteria was I would save over time looking to save £15-20k for each of them. When they were saving for a deposit or for university I would wait until they're dedicated to saving and over half way there before they have access - I want them to show financial independence and awareness first.

In the end I decided to just save it in a premium bond account in my name. I put into it every month and forget about it. If i get a payout great, if i dont then im still saving without touching the money and i'll release it at my discretion. If I pass away before that point the money will be devided amongst them and paid out.

xylophone

Bare trust is released to a child automatically on 18th birthday i think. Si yours is just an investment account which is taxed as if it was yours and part of your estate? Is it treated in any way differently because it has child's name on it ?

See https://select.bestinvest.co.uk/investment-guidance/investing-for-children/trusts-and-designated-accounts

The difference between a bare trust and a designated account is explained.

justme111

That's the point , xylophone. I looked into it before - it would be op's savings investments earmarked for children. So jimjames advice was just recommending a specific investment , not something which has different conditions due to being done for a child

sqwiffy

I've been using the Halifax saver(6%)for my grandchildren for the same reason as Drumuk and it's about to end the year, so the letter has arrived to warn me it will change to a low interest one. They are aged 10 and 6 and they have those trustfunds/ISA things their parents have. Are you only allowed one of these? I assume so. Should I just look for the best regular saver to transfer to? I hope it's alright to add this to your post Drumuk? I'm new too, although I lurk a bit!

PasturesNew

I'd be wary of doing it "for each one" - my cousin's got 29 grand-children... you never know how many you'll end up with.

sqwiffy

Not worried about that. You only have so much money, and if they increase they might have to get a smaller amount each! Similar issue at Christmas with my nieces/nephews and great ones now. Have about 20 plus of those.