Saving for granddaughter, have I missed anything?

aroominyork

We're also thinking about investing for our two year old granddaughter. Her parents have opened an S&S JISA with University fees in mind. We have contributed, though conscious that at 18 she can access it and use the funds as she wants. We are also mulling over a Junior SIPP since the govt will annually add £720 to each £2880 invested. For IHT purposes it would be good to contribute out of excess income but that seems complex and gets into the tax tail wagging the dog since we would have to convert some of our growth investments to income-generating ones to avoid using money out of capital.

Keep_pedalling

elsien said:

Whereas the downside is that if it’s in your own name, it would be an asset as part of a divorce/needing to claim means tested benefits/pay for care  et cetera.
Which may well not be considered to be an issue right now but sometimes !!!!!! happens.

And for IHT purposes. 

Albermarle

aroominyork said:

We're also thinking about investing for our two year old granddaughter. Her parents have opened an S&S JISA with University fees in mind. We have contributed, though conscious that at 18 she can access it and use the funds as she wants. We are also mulling over a Junior SIPP since the govt will annually add £720 to each £2880 invested. For IHT purposes it would be good to contribute out of excess income but that seems complex and gets into the tax tail wagging the dog since we would have to convert some of our growth investments to income-generating ones to avoid using money out of capital.

There seems to be varying opinions on investing in SIPPs for young people.
One school of thought being that for most people money available in their Twenties, will be a lot more use than money available nearly 40 years later, when they may not even need it.

aroominyork

Albermarle said:

aroominyork said:

We're also thinking about investing for our two year old granddaughter. Her parents have opened an S&S JISA with University fees in mind. We have contributed, though conscious that at 18 she can access it and use the funds as she wants. We are also mulling over a Junior SIPP since the govt will annually add £720 to each £2880 invested. For IHT purposes it would be good to contribute out of excess income but that seems complex and gets into the tax tail wagging the dog since we would have to convert some of our growth investments to income-generating ones to avoid using money out of capital.

There seems to be varying opinions on investing in SIPPs for young people.
One school of thought being that for most people money available in their Twenties, will be a lot more use than money available nearly 40 years later, when they may not even need it.

If we are not around when they are in their 20s, I hope we will have left their parents a reasonable amount to see their kids through any immediate needs. One of the few things that seem likely, looking 60 years ahead, is that there will be less money around. Maybe the state pension will be means tested, so pension planning several decades ahead may not be crazy. But we are just starting this thought process so I'd love to hear others' views on middle class financial grandparenting.