We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Saving for a child in your name

13»

Comments

  • Tom99
    Tom99 Posts: 5,371 Forumite
    1,000 Posts Second Anniversary
    [FONT=Verdana, sans-serif]Depending on your age and if you have scope, you could open a SIPP in one of your names with your daughter listed as beneficiary.[/FONT]
    [FONT=Verdana, sans-serif]That would immediately be outside the scope of IHT and if you are over 55 when your daughter reaches 18 could be cashed in to give her the money.[/FONT]
  • Wildsound
    Wildsound Posts: 365 Forumite
    Fifth Anniversary 100 Posts Photogenic
    AnotherJoe wrote: »
    Yes you make a good point about life events but that works two ways, you might decide that the wife needs the money more than the child and having it locked up in a trust so the wife cant get, lets say the cure for Alz* because its £250k and thats inaccessible would be a bad outcome.

    * or more mundanely, 2 hip operations rather than waiting 5 years on the NHS

    As far as I am aware, you could just have the wife as one of the beneficiaries of the trust (if you're setting up a discretionary trust) if that was a legitimate concern.
  • AnotherJoe wrote: »
    Yes you make a good point about life events but that works two ways, you might decide that the wife needs the money more than the child and having it locked up in a trust so the wife cant get, lets say the cure for Alz* because its £250k and thats inaccessible would be a bad outcome.

    * or more mundanely, 2 hip operations rather than waiting 5 years on the NHS

    I've thought about the pros and cons of the life-events argument which is why I personally wouldn't go down the Trust route (although another post makes the point that you can include other people in it). As for the amount locked up I'm afraid I hadn't thought about amounts anywhere near those you postulate. We might just have that much in our house value but savings for a grandchild/child could never amount to even a few percent of that. We must move in very different circles.

    As for a cure for dementia (including Alzheimer's disease) - fat chance! - and if it were to cost £250K, I'd have to sell the house and pay it but things don't work that way - and we'd have nowhere to live afterwards - and let's face it, stopping brain atrophy is one thing, rebuilding the brain afterwards and reacquiring all of those lost skills is quite another.

    But I digress - I simply gave a view and that's all there is to it. Good luck with the new hips - I presume that's why you mentioned that example.:)
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.9K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.1K Spending & Discounts
  • 244.9K Work, Benefits & Business
  • 600.5K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.