Savings / investments for grandchild in Europe

Yorkie1

Mum (now 83) wishes to spend about £100 per month on savings for her grand-daughter (who has dual UK / Belgian citizenship and has always lived in Belgium).

GD's dad (my brother) has suggested something investment-based rather than cash savings, given GD's age (just turned 12).

Am I right in thinking that the options are:

1. Mum opens a S&S ISA here in her own name, which she can contribute to (no tax) and either gives the proceeds to GD at some future time of her choosing. If Mum passes away before doing so, the ISA closes, the funds form part of Mum's estate, and the funds don't get to the GD unless the executors vary the will accordingly (which we would do).

2. Mum opens a non-ISA S&S account here. Possible tax on dividends. Otherwise as for #1 above.

3. I considered Mum opening a JISA here but as GD is not UK resident, I think this fails.

4. I considered Mum opening a bare trust here, but again I think this fails as GD is not UK resident.

5. My brother opens something in Belgium, Mum sends the funds to him and he transfers the money into that account.

6. As for #5 but there is a way for Mum to make payment into that account directly (I don't know if that would be feasible but thought it worth listing anwyay).

Have I missed anything?

And am I right in thinking that the most straightforward would be #5?

Mum has been paying an amount towards GD's fees once a term for the last two years (this is about to end as no longer needed), so is familiar with making GBP > Euro transfers from her bank account to my brother's.

tacpot12

Using a payment service like Wise would allow payments to a European bank account to be made fairly easily. Wise doesn't offer a recurring payment service for personal customers, so each payment would have to be made manually, but a standing order to pay Wise could be set up from your mother's bank account.

The European bank account could be the account provided by the investment provider if the account number is unqiue to your neice's account or if Wise can transmit a payment referrence that can be used to link it to your neice's account. 

There might be an issue of tax. My son lives in another EU country and can only receive a certain amount of money each year as a gift without tax being due on it. The amount being proposed seems unlikely to breech any tax limits, but this shoudl be checked.  I would go with option 1 or 6, with 5 as a fallback. 

Yorkie1

Thanks @tacpot12. Hadn't thought about the tax aspect for transfers to my brother - I suspect he's not thought about it either!

Not sure that Mum will be up to using Wise (she doesn't do any online banking or bank apps), but transfers are straightforward using Coop phone banking, so will talk through 1, 6 and 5 with her and my brother.

Hoenir

Yorkie1 said:

 the funds don't get to the GD unless the executors vary the will accordingly (which we would do).

Executors generally cannot unilaterally change a will . Requires agreement from all the named beneficiaries. 

Yorkie1

Hoenir said:

Yorkie1 said:

 the funds don't get to the GD unless the executors vary the will accordingly (which we would do).

Executors generally cannot unilaterally change a will . Requires agreement from all the named beneficiaries. 

Yes, brother and I are the executors and the named residual beneficiaries after some charitable bequests.