investing for grandchildren

meekhcs

We have 3 young grandchildren and we wish to invest a small lump sum to provide them with a cash sum when they reach 18. Our problemis that 2 of our grandchildren were born and live in Belgium and this throws up the problem of money laundering! Can anyone suggest the best investment to go for to get round this problem that will give a reasonable return pease? Many thanks

Shashy

Can't you just invest it in your own name and gift it to them when they're old enough / when you see fit?

xylophone

For the child born and resident here it might be easiest to contribute the child's CTF/JISA.

https://www.gov.uk/junior-individual-savings-accounts

Ask the parents whether there is an existing account.

https://www.gov.uk/junior-individual-savings-accounts


It may be possible for you to open an investment trust savings plan in trust for your non-resident grandchildren - SIT used to allow this

https://forums.moneysavingexpert.com/discussion/5630007

but this plan is no longer available.

You might give Baillie Gifford a ring or Witan.

https://www.bailliegifford.com/individual-investors/how-to-invest/childrens-savings-plan/

https://www.witan.com/how-invest/jump-savings-plan

It would certainly be possible to open a designated account in such a plan but the money would still be regarded and taxed as yours.

Or you might simply choose to regard your own ISA as "earmarked" for a grandchild.

If held in any other way than in bare trust, you would need to actually write your will to bequeath the gift should you die before making it.

AnotherJoe

I think saving in your own name is easiest, open an ISA put a lump sum in. Avoids a lot of paperwork.

meekhcs

Thanks for your kind replies. We had already thought that investing in our own name/s would be easiest. I just wanted to make sure we hadn't missed a trick.

Alexland

If investing in your name then consider inheritance tax and ensure your will makes it clear that they should benefit from your estate.

For the children in Belgium are there adults around (presumably their parents?) who might know the local market? It us still possible to send money to Belgium if they are likely to stay there.

Alex