Savings for a new grandchild

Alexland

ukwendy said:

Oooh I like that idea - and it works out fairer for them all doesn't it? Thank you.

If you do go with this remember the money is still in your name so would fall within your estate for calculation of any inheritance tax and you may wish to make specific provisions in your will incase you don't live long enough to gift the money to them.

ukwendy

Alexland said:

ukwendy said:

Oooh I like that idea - and it works out fairer for them all doesn't it? Thank you.

If you do go with this remember the money is still in your name so would fall within your estate for calculation of any inheritance tax and you may wish to make specific provisions in your will incase you don't live long enough to gift the money to them.

Another good point - thank you!

DiamondLil

xylophone said:

We could do that but interest rates are so low that we are looking for something that may have a better return over the next 18 years. 

You could consider a  lump sum and then regular contribution to a stocks and shares ISA in your own name and then gauge the best time to make any gift to your grandchild.

This is what I do; a general investment account for each grandchild which I add to regularly.

stephenadarglas

I currently invest for my grandson in the L&G International Index Trust tracker.  £600 a year until whenever.  It's in my ISA allowance so I have total control over when he has it.  Worth mentioning perhaps that I also mention this in my will. 

Keep_pedalling

Does your joint net worth take you into IHT territory? If so or you are close to it then something in their own names may be a better option.

ukwendy

stephenadarglas said:

I currently invest for my grandson in the L&G International Index Trust tracker.  £600 a year until whenever.  It's in my ISA allowance so I have total control over when he has it.  Worth mentioning perhaps that I also mention this in my will. 

Thanks - I will check that out. And good advice about the will too.

ukwendy

Thanks everyone - I really appreciate all your advice :-)

Albermarle

ukwendy said:

Thanks everyone - I really appreciate all your advice :-)

In the personal finance world - advice has a specific meaning . It is something you pay for and is personal to you and highly regulated 
What you get from this forum are more  pointers in the right direction ( hopefully )

DireEmblem

Agree on the Stocks and shares ISA.  It’s then a case of where and what to hold.

If you are expecting more then I would buy similar funds - may as well go something like an all world equity fund, but then at say 15 years review and change to something more stable if you think you might give it to them at 20+ to help with a house deposit or something.

At which point, if we are in the middle of an event such as what happened in March/April 2020, then you may be best leaving until it recovers.

Just a thought, but I would think about the full journey, from now until when you would like to gift some to them.  Then sit back, relax and follow your plan and don’t overreact when the markets go up and down as it’s long term.

Cus

Do you intend to tell them when they are a bit older that you have this for them? Or is it a surprise when they are 18?