Saving for a god child abroad (in the US)

Mark_in_Kent · 25 April 2014 at 5:42PM

Hi

My best friend moved to the States a few years ago to be with his American girlfriend, got married and had a baby. Now lucky for him I'm his god parent and would like to put aside £10 per month until he's 18.

I can't open a Junior ISA for him, I could (maybe) open a UK bank account, call it his name so I don't forget it's his and put money in it.

Or does anyone know of another more efficient way for me to put aside some money for him? Is there anything in the US I could take advantage of? I have asked his parent to look into it but they're to busy with a baby right now.

Thanks in advance,
Mark

xylophone · 25 April 2014 at 6:09PM

It is difficult to set up a UK account for a non resident child.

Could you afford £25 a month into an investment trust held in bare trust for the child?

Example here http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/

Mark_in_Kent · 29 April 2014 at 9:59PM

Thanks xylophone, I'll take a look. Maybe I can split £25 a month with another god parent.

Mark_in_Kent · 29 April 2014 at 10:07PM

Ah, scuppered...
Eligibility for a bare trust
"If either the donor(s) or the beneficiary was born in the US... we
would be unable to set up a bare trust for them."

He was born in the US

xylophone · 29 April 2014 at 10:22PM

http://www.investorschronicle.co.uk/2014/02/05/comment/smart-money/how-to-save-for-non-resident-grandchildren-EBvAWilBWVXmQP8A7oojTI/article.html

might be of interest.

Is it SIT who will not permit an American beneficiary? Try another provider? https://www.theaic.co.uk/aic/find-compare-investment-companies/management-group-and-wrapper-schemes

Saving for a god child abroad (in the US)

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