Grandparents to give newborn grandson £5k

Sam_J12

I would pop it into a Junior stocks and shares ISA. Probably invest in a tracker fund - either a global tracker or S&P 500 tracker. S/he can access it at the age of 18.

Biggles

If the parents are donating, a Junior ISA can be worthwhile, as one year's subscription could take them over the £100 limit, above which they would otherwise be taxed.

There's much less to be gained by tying yourself down with ISA'able investments if the grandparents are donating, however, as the limit will always be the child's own tax allowance, currently £10,600.

In event of any of my grandchildren's investments approaching the CGT allowance, it will merely be sold and repurchased before that happens.

atush

I used witan Jump for my 3 boys, and it paid for university expenses.

haggis4

Thank you all for your replies.

I'll have a chat with my parents and see what they think. Lots to read about!

x

justme111

I looked at witan jump saving plan . It has s not clear to me whether money actually belongs to an adult and just earmarked for child making it basically part of investments of that adult or does it belong to a child and a child gets control of it at 18
If former then why would one need to open this specific plan , one could just allocate portion of one's S&S ISA, any particular fund like L&G tracker for example that one decides will be for a child?

xylophone

not clear to me whether money actually belongs to an adult and just earmarked for child

http://www.jumpsavings.com/sites/default/files/literature/Jump_BareTrust_Form.pdf

It should be held in bare trust rather than merely "designated" if it is clear that the gift from the grandparents is to the child rather than the parents.

Another example http://www.sit.co.uk/private-investors/products/stockplan-a-flying-start

under FAQ.

atush

We held ours as designated, but these days I think you can Jisa it too?