Niece - what's the best way to give a few £k

Niece - what's the best way to give a few £k

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Original Poster:

23,902 posts

195 months

Saturday 11th February 2017
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My sister is having a baby in the next few weeks. My sister isn't poor, by any means, and my parents have made a significant contribution to their new house.

Is there any way I can set up some kind of account for my new niece and gift it to her - I get a bonus each year, I don't expect to have kids myself, so a couple of £k each year isn't an issue and perhaps it can help with what she might want to achieve in her life in the future.

I have no ideal of being a helpful or useful uncle apart from this - but perhaps this might be useful for her.

Otherwise I guess I can give the money directly to my sister which is fine.

ellroy

7,053 posts

226 months

Sunday 12th February 2017
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If you're just wanting to build up some cash, find as good a rate as you can from a BSoc children's account and open in her name, you'll need some ID from your sister for her when the little one arrives, but a relatively easy job.

However, that cash is the child's at 18 irrespective of the amount and how mature they are.

Given the long term of investment, assuming you're happy to do so you could look at nominee account for something such as a tracker fund based on equities, but seek some advice on this, again the funds are the child's at 18.

Alternatively if looking really long term you could consider making some pension provision which can really make a very big difference, but not when they're young!

If as you say it's coming from your regular income there's no IHT to worry about under normal circumstances either.

A very nice thing to do.