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Thread: Savings for children

  1. #1
    Master
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    Savings for children

    I'm looking to create some sort of savings for my brother in-laws two children, to give them a little something for when there older. Looking at putting something away each month rather than a lump sum.

    Any ideas on the best way to do this?

    Also ways to restrict access to it until there 18/21/25? I inherited a load of money at 18 and wasn't responsible enough to know what to do with it, hence why I'd like access at a older age.

    Sent from my VOG-L29 using Tapatalk

  2. #2
    Craftsman
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    You have a junior ISA which locks up the money until they are 18 but then they have full control over it. Normal ISA rules for tax.
    You can put money into a SIPP for them which will lock it up until they are 57!

    Between those there is no easy access mainstream account like the above (I think). One option is to open up an account in your own name and save there, especially if you aren't using all of your ISA allowance each year currently. Then you can pass onto them either in a lump sum or parts when you see fit.

  3. #3
    Quote Originally Posted by bloater View Post
    I'm looking to create some sort of savings for my brother in-laws two children, to give them a little something for when there older. Looking at putting something away each month rather than a lump sum.

    Any ideas on the best way to do this?

    Also ways to restrict access to it until there 18/21/25? I inherited a load of money at 18 and wasn't responsible enough to know what to do with it, hence why I'd like access at a older age.

    Sent from my VOG-L29 using Tapatalk
    Unless you are using their allowances, why not invest in your name on their behalf and then gift them the amount at the age you feel is appropriate in future.
    It's just a matter of time...

  4. #4
    Master
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    Quote Originally Posted by bloater View Post
    I inherited a load of money at 18 and wasn't responsible enough to know what to do with it, hence why I'd like access at a older age.

    I think that would require some kind of (expensive) trust arrangement.

    How much are you talking about per month?

  5. #5
    Master
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    Quote Originally Posted by Omegamanic View Post
    Unless you are using their allowances, why not invest in your name on their behalf and then gift them the amount at the age you feel is appropriate in future.

    Might not be significant but you wouldn't get their tax reliefs. Would probably be an IHT gift when made which might be suboptimal?

    If it's £50 per month, probably not worth too much worrying about - but £500, £5,000, maybe bet a lawyer involved and have a proper trust arrangement/

  6. #6
    Master Alansmithee's Avatar
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    Kids pension? That would be really long-term and they could toast you long after you are dead.

  7. #7
    Master
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    I have a friend who has come to an agreement with his two daughters.

    His daughters have agreed to forgo their inheritance and the entire lot will be passed onto the grandchildren.

    It seems to make sense because most sons and daughters will inherit at the age of around 50 yrs when they don't really need it.

    The grandchildren will be in their twenties and that is when you need the money to buy a property etc.

  8. #8
    Master
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    We’ve recently bought some premium bonds for our first grandchild. For a while you couldn’t do this but now you can, it needs to baby and parents details to open the account. They’ll get a form to fill in and send back appropriate proof of who they are and the babies details.

  9. #9
    Journeyman
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    Quote Originally Posted by David_D View Post
    Might not be significant but you wouldn't get their tax reliefs. Would probably be an IHT gift when made which might be suboptimal?

    If it's £50 per month, probably not worth too much worrying about - but £500, £5,000, maybe bet a lawyer involved and have a proper trust arrangement/
    that's a huge amount you surely need a lawyer

  10. #10
    Master
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    Not worried about tax relief etc, and in the grand scheme of things it won't be massive amounts probably circa £50 per month.
    I just want it so that neither mother can get access to the funds and I'd like the children to get it when there old enough to appreciate it.

    Sent from my VOG-L29 using Tapatalk

  11. #11
    Craftsman
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    Quote Originally Posted by bloater View Post
    Not worried about tax relief etc, and in the grand scheme of things it won't be massive amounts probably circa £50 per month.
    I just want it so that neither mother can get access to the funds and I'd like the children to get it when there old enough to appreciate it.

    Sent from my VOG-L29 using Tapatalk
    Just save it under your own name and give them up when you choose then, easiest solution.

  12. #12
    Master Alansmithee's Avatar
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    Quote Originally Posted by Mick P View Post
    I have a friend who has come to an agreement with his two daughters.

    His daughters have agreed to forgo their inheritance and the entire lot will be passed onto the grandchildren.

    It seems to make sense because most sons and daughters will inherit at the age of around 50 yrs when they don't really need it.

    The grandchildren will be in their twenties and that is when you need the money to buy a property etc.

    I had a family friend like this - all very sensible.




    Shame he stayed shagging his cleaning lady and when he died, he'd left it all to her... which came as a shock to all concerned...

  13. #13
    Master Chewitt13's Avatar
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    Quote Originally Posted by Mick P View Post
    I have a friend who has come to an agreement with his two daughters.

    His daughters have agreed to forgo their inheritance and the entire lot will be passed onto the grandchildren.

    It seems to make sense because most sons and daughters will inherit at the age of around 50 yrs when they don't really need it.

    The grandchildren will be in their twenties and that is when you need the money to buy a property etc.

    I have a real issue with this. My parents have split their will 6 ways, myself and my sister and our 4 children. Now my children are 4 and 8, I have no idea if they will be crackheads by the time they get any inheritance, hopefully not, but you can never tell. I would still like to be in control of any large sums of money which may be heading their way, even in their 20's, its my job to provide for them, not my dad's. their logic is that neither myself or my sister need the money but the children might, which I get the logic and noble intent but it still scares me to remember what I was like in my twenties...….

    I don't need the money but still...…..

    - - - Updated - - -

    Quote Originally Posted by Mick P View Post
    I have a friend who has come to an agreement with his two daughters.

    His daughters have agreed to forgo their inheritance and the entire lot will be passed onto the grandchildren.

    It seems to make sense because most sons and daughters will inherit at the age of around 50 yrs when they don't really need it.

    The grandchildren will be in their twenties and that is when you need the money to buy a property etc.

    I have a real issue with this. My parents have split their will 6 ways, myself and my sister and our 4 children. Now my children are 4 and 8, I have no idea if they will be crackheads by the time they get any inheritance, hopefully not, but you can never tell. I would still like to be in control of any large sums of money which may be heading their way, even in their 20's, its my job to provide for them, not my dad's. their logic is that neither myself or my sister need the money but the children might, which I get the logic and noble intent but it still scares me to remember what I was like in my twenties...….

    I don't need the money but still...…..

  14. #14
    Master Alansmithee's Avatar
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    Quote Originally Posted by Chewitt13 View Post
    . Now my children are 4 and 8, I have no idea if they will be crackheads by the time they get any inheritance, hopefully not,
    Yes... hopefully not...



  15. #15
    Master reggie747's Avatar
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    Quote Originally Posted by Chewitt13 View Post
    to remember what I was like in my twenties...….
    Where you a crackhead then ??

  16. #16
    Master Chewitt13's Avatar
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    Quote Originally Posted by reggie747 View Post
    Where you a crackhead then ??
    No but I’d spent the lot on booze and women - let’s say I didn’t cheat myself

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