3 way joint account

NODDYNODSVILLE

Hi there, 
I have been researching a way to save for our 2 yr old grandson. We want an account where 3 adults are the trustees, none of whom are our grandson’s parents, and our grandson is the beneficiary. My wife and myself are 2, plus our daughter is another. I want to set the account up like this, so if anything happens to my wife and myself, our daughter will have full control of the account until our grandson is 25.
I believe 2 of us can open a normal joint account, and a third person added once account is opened. 

We don’t want any investment accounts or accounts where you have to pay in a certain amount every month.
Any help or advice would be much appreciated. Thanks

Keep_pedalling

For a 2 year old you really should be looking at equities rather than cash accounts. What you are describing is a discretionary trust which is probably not an option as they are a pain to manage and are subject to some eye watering taxation. The simplest solution would be to open an ISA in your own names and leave that to your grandchild ( or grand children) in your wills. I would also get their mum to open a JISA to provide them with some money when they are 18. 

NODDYNODSVILLE

Thanks K P for prompt response. We are really looking for an account where we can put in monies at Christmas, birthdays etc., don’t understand equities and don’t want to invest. Just a way of saving for his future. Looking at ISA’s in our name then add it to our wills. Can’t find any long term deals for ISA’s 

Eyeful

1. This is just to let you understand why you will get people here suggest investing for a child who is only 2 years old.
Expected returns for the long term (say at least 10 years).
Investing = highest returns.
Bonds
Cash = Lowest returns.

2. If you want a simple explanation of investing just watch this video:     https://www.kroijer.com/

3. For saving in JISA's: 
 https://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-children-s-accounts.html

Keep_pedalling

NODDYNODSVILLE said:

Thanks K P for prompt response. We are really looking for an account where we can put in monies at Christmas, birthdays etc., don’t understand equities and don’t want to invest. Just a way of saving for his future. Looking at ISA’s in our name then add it to our wills. Can’t find any long term deals for ISA’s 

The problems with avoiding equities because you don’t understand them is that any cash savings you make will lose real value because inflation more than wipes out the interest that has been earned, and on long term savings this really negatively affects the spending power of those savings.

As we are talking about relatively small sums then I can’t see that keeping it back until they are 25 is at all practical. Keeping it in trust is complex and expensive so the only alternatives are JISAs (accessible at 18) or keeping the savings in the parents or your names.

We fund S&Ss JISAa for our 3 grandchildren. We got our children to set them up, and we added the initial lump sum just after they were born and we add a smaller sum each birthday. You don’t have to understand equities to do this just keep the money in a multi-asset fund and let it do its thing. Our GCs JISAs are with Vanguard and all the investments are held in their LS100 fund. There are plenty of other options.

We are happy for them to use this money in any way they wish but we will be encouraging them to keep investing once they get a little older (all under 7 at the moment) 

If you are likely to have more GC and are not in a position to fund more then perhaps an ISA in your own names may be the best option if you are tax payers, but again cash is not the best option.