Saving for family

craig71

Hi my aunt is looking to set up some sort of savings for my to boys 15 & 18. She wants it to be given after she dies , she's fit and well so wont be for a while. She tried to open bank accounts but was told she can't due to there age. What is her best option?? Thanks in advance

p00hsticks

If she only wants them to have the money after she dies then I think she'd need to set up accounts in her own name and put it into her will. There's no way that I'm aware of that she can stop them accessing the money when they reach 18 if it's in their names as it belongs to them (other than contributing to a pension scheme in their names, which would stop them getting hold of the money at all until they are in their late fifties at th earliest).

If she does keep it in her own name she needs to remember that she will be taxed on it and it will be taken into account when applying for any means-tested benefits. And she needs to be careful with the wording of the wil lto ensure that any sacings account can be ideintified and the inheritance doesn't fail if, for example, the finiancial institution has been taken over by another prior to the death.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81892752#Comment_81892752

Or an alternative is that the OP opens up a couple of savings/investment accounts of their own, to put money in that the Aunt gives, until the time it is deemed appropriate to give it to the young adults.

Of course there is the possibility that may compromise their own financial position, if they have a lot of savings, are on benefits etc.

LHW99

There are junior SIPPs. the OP may have to open them, but 3rd parties could pay in, and they would be allowed up to £2880 pa even if they are not earning and the money would get tax relief.

Disadvantage is that they coul not access that until they are 57+ (depending on the rules when they get there).