Grand child savings account

duncanilona

Hi. As grandparents we are wanting to open a savings account for him, he is 6months old.  Not sure if anyone can help with best ones to look at. This savings would run until they were 18 or 21 years old. 

Keep_pedalling

One option would be to get their parents to open a S&Ss JISA which you can then fund. This is what we have done for our 3 grand children. 

FrugaiMacDugal

Here's what MSE says.

Albermarle

Due to the long time scale involved, then you are almost certain to end up with a bigger fund by investing rather than saving the money.
The best way to do this is via a stocks and shares JISA.
Two investment platforms offer them for free, although the investment (s) you choose will have a fee.
I think only a parent can open them, but after that you can contribute directly as far as I know.
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity

wmb194

duncanilona said:

Hi. As grandparents we are wanting to open a savings account for him, he is 6months old.  Not sure if anyone can help with best ones to look at. This savings would run until they were 18 or 21 years old. 

If you only want them to have the money at 21+ then you could just save or invest the money in an account in your own name. If you have the headroom in your allowance, Isas are good for this.

DiamondLil

I save into stocks and shares with Hargreaves Lansdown. They allow me to have an account for each grandchild, in my name and designated to each child. I am liable for any tax due, which, so far, hasn't arisen.

Keep_pedalling

DiamondLil said:

I save into stocks and shares with Hargreaves Lansdown. They allow me to have an account for each grandchild, in my name and designated to each child. I am liable for any tax due, which, so far, hasn't arisen.

After 18 years there will almost certainly be a CGT liability on them.

poseidon1

Hargreaves have specific bare trust arrangements allowing individuals to set up children's investment accounts in trust ( especially useful for grandparent funding).

Benefits of bare trusts in grandparent funding situations:

1) Money has left the grandparents estate and after 7 years IHT free.
2) Income belongs to child from inception of bare trust, so no income tax on grandparent or parent.
3) Realised capital gains belongs to the child, so annual exemptions available.

However a bare trust must terminate at age 18 or 16 in Scotland.

 HL offers a pretty decent bare trust document - details below - 

https://www.hl.co.uk/investment-services/investing-for-children/bare-trust-account

Also grandparents  with very deep pockets, should not overlook SIPP funding for babies. £2280 gifted per year plus HMRC £720 relief can give a child a very good head start by way of private pension funding long before they themselves enter the job market. 

https://www.hl.co.uk/pensions/junior-sipp

DiamondLil

Keep_pedalling said:

DiamondLil said:

I save into stocks and shares with Hargreaves Lansdown. They allow me to have an account for each grandchild, in my name and designated to each child. I am liable for any tax due, which, so far, hasn't arisen.

After 18 years there will almost certainly be a CGT liability on them.

Of course - I have a separate contingency fund in anticipation of the taxes.

poseidon1

DiamondLil said:

Keep_pedalling said:

DiamondLil said:

I save into stocks and shares with Hargreaves Lansdown. They allow me to have an account for each grandchild, in my name and designated to each child. I am liable for any tax due, which, so far, hasn't arisen.

After 18 years there will almost certainly be a CGT liability on them.

Of course - I have a separate contingency fund in anticipation of the taxes.

Wouldn't have needed it if you had gone the bare trust route.