Savings for grandchildren

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.

Comments

  • masonic
    masonic Posts: 26,474 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You could look into setting up a bare trust, but the grandchildren would gain access at 18.
  • Albermarle
    Albermarle Posts: 27,087 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    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.
  • 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
    masonic Posts: 26,474 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 24 November 2021 at 5:12PM
    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
    DiamondLil Posts: 729 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    edited 26 November 2021 at 6:42PM
    masonic 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
    xylophone Posts: 45,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
     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.


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
  • 349.9K Banking & Borrowing
  • 252.6K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.8K Work, Benefits & Business
  • 619.7K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support 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.