Savings for grandchildren

5 Posts

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.
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The main issue is that with ISA's it restricts how much you can invest for yourself at the same time.
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.
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.