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Investing £70,000 for a child

gash
gash Posts: 52 Forumite
in Savings & investments
My mother wants to give my daughter £70,000 - part of a recent inheritance she received. What is the best way to invest this for a child? The main issue is the money being safe. I don't want anything high interest where the money may be at risk. She would also be happy with it being tied up for a fixed term, like 5 or 10 years so daughter receives it when she's approx. 18 years old.


Thanks in advance!
«134

Comments

  • le_loup
    le_loup Posts: 4,047 Forumite
    Try NS and I.
    How old is you daughter?
    How old is you mother?
    How is your mothers health.
  • gash
    gash Posts: 52 Forumite
    le_loup wrote: »
    Try NS and I.
    How old is you daughter?.............. 9
    How old is you mother?........... 70
    How is your mothers health......... Pretty good.


    Thanks for the reply!
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    The best way is at least some of it in funds/shares because otherwise your mother might as well give daughter £55k in 10 years time (what it will be worth with inflation over say 10 years).

    But then again you didnt want to take any "risk" so the trade off for that is losing £15k for sure.
  • gash
    gash Posts: 52 Forumite
    AnotherJoe wrote: »
    The best way is at least some of it in funds/shares because otherwise your mother might as well give daughter £55k in 10 years time (what it will be worth with inflation over say 10 years).

    But then again you didnt want to take any "risk" so the trade off for that is losing £15k for sure.


    So what you are saying is if it goes into a high street savings account, £70,000 might end up being £80,000 in 10 years time................but.............based on inflation £80,000 won't be what £80,000 or even £70,000 is today?
  • Wassa123
    Wassa123 Posts: 393 Forumite
    Safest: Find a high interest savings/current account.
    Safe: Find some government bonds.
  • sparks6
    sparks6 Posts: 23 Forumite
    10 Posts Second Anniversary
    i would save some then spend some to send her to private school, thats also an investment in the child.
  • paulharding150
    paulharding150 Posts: 119 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Don't let anyone have access to £70,000+ on their 18th Birthday.
    The campaign against overpowering signatures
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If your mother is a wealthy woman suggest she see a lawyer and make the gift by Instrument of Variation. If she does that within two years of the deceased's death the money will be classed for IHT purposes as never having entered her estate.

    In fact it's not too hard to draw up an IoV oneself: there's a useful government site to visit.
    https://www.gov.uk/alter-a-will-after-a-death
    Free the dunston one next time too.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It used to be not too hard to tie up money beyond age 18: that was swept away by that nice Mr Brown. He was angling for votes from eighteen year olds, I suppose.
    Free the dunston one next time too.
  • gash
    gash Posts: 52 Forumite
    paulharding150 wrote: »
    Don't let anyone have access to £70,000+ on their 18th Birthday.


    Haha, yes I agree. I'll make sure its done in a way I have control to make sure it's not wasted. Maybe a reasonable car at 17, house deposit, university fees etc.
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