Savings for grandchildren 23 November 2021 at 2:01PM in ISAs & tax-free savings 6 replies 277 views

dscaj1

I have twin grandchildren who are 5 years old. I have looked into doing a junior stocks and shares ISA for them but only a parent can open the account and can see how the account is progressing and the money is available to them on their 18th birthday. I want to open an account for them that will grow (so along the lines of a junior stocks and share ISA) but want to give them the money myself and ideally at 21 years old. I wanted to keep track of the investments myself. I understand children have their own tax allowance. Is there anything on the market whereby a grandparent can open an account for them and keep track of everything themselves. The parents are aware I want to do this and I will have access to their birth certificates to open the account.

masonic

You could look into setting up a bare trust, but the grandchildren would gain access at 18.

Albermarle

dscaj1 said:

I have twin grandchildren who are 5 years old. I have looked into doing a junior stocks and shares ISA for them but only a parent can open the account and can see how the account is progressing and the money is available to them on their 18th birthday. I want to open an account for them that will grow (so along the lines of a junior stocks and share ISA) but want to give them the money myself and ideally at 21 years old. I wanted to keep track of the investments myself. I understand children have their own tax allowance. Is there anything on the market whereby a grandparent can open an account for them and keep track of everything themselves. The parents are aware I want to do this and I will have access to their birth certificates to open the account.

It is probably easier just to open an account in your own name , and then you can give it to them at want age you want .
The main issue is that with ISA's it restricts how much you can invest for yourself at the same time.

DiamondLil

I have general investment accounts, one for each grandchild, with Charles Stanley. The accounts are in my name, with the child's initials as a designation.

masonic

DiamondLil said:

I have general investment accounts, one for each grandchild, with Charles Stanley. The accounts are in my name, with the child's initials as a designation.

Presumably HMRC would treat any income or capital gains as yours rather than your grandchildren's in this set up? This might not be an issue for the OP, but worth pointing out.

DiamondLil

masonic said:

DiamondLil said:

I have general investment accounts, one for each grandchild, with Charles Stanley. The accounts are in my name, with the child's initials as a designation.

Presumably HMRC would treat any income or capital gains as yours rather than your grandchildren's in this set up? This might not be an issue for the OP, but worth pointing out.

Yes of course; income tax is not an issue for me either, nor is CGT at the current valuations; if or when CGT becomes payable, I believe I'll be past caring too much.

xylophone

 I want to open an account for them that will grow (so along the lines of a junior stocks and share ISA) but want to give them the money myself and ideally at 21 years old.

If you open "bare trust" accounts for the children, they have the right to access and control at age 18 (16 in Scotland).

You could use your own ISA allowance and consider this money as "earmarked" for your grandchildren.

You could then make any gifts at the time of your choosing.