Investment For Grandchildren Based Abroad

[bad company]

As per the title. My son and daughter in law emigrated to the USA 2 years ago taking the granddaughters with them. I pay into deposit accounts for the 2 granddaughters but those are in my name. Obviously I can’t open ISA’s for them so what can I do please?

Grateful for any advice/help.

[The Moose]

Do you have any idea of the amount of money, the frequency and what you want it to be held in (cash, shares, mutual funds etc)?

Probably an UTMA or UGMA of some sort.

The other thing you could do (if the parents are not taking care of it) are a Coverdell ESA or 529 for college. If you go 529, don’t go for prepaid college!

[bad company]

The Moose said:

Do you have any idea of the amount of money, the frequency and what you want it to be held in (cash, shares, mutual funds etc)?

Probably an UTMA or UGMA of some sort.

The other thing you could do (if the parents are not taking care of it) are a Coverdell ESA or 529 for college. If you go 529, don’t go for prepaid college!

Thank you for that.

I had to Google all of those. I don’t think the Coverdell would work as my son and dil earn a fair bit in the USA. At the moment I have separate accounts in my name in a UK bank for each of the Granddaughters. There’s a few hundred £’s in each but I’d like to make a monthly contribution to them. Presumably I’d need to be in the USA to open a UTMA or UGMA?

[The Moose]

bad company said:

The Moose said:

Do you have any idea of the amount of money, the frequency and what you want it to be held in (cash, shares, mutual funds etc)?

Probably an UTMA or UGMA of some sort.

The other thing you could do (if the parents are not taking care of it) are a Coverdell ESA or 529 for college. If you go 529, don’t go for prepaid college!

Thank you for that.

I had to Google all of those. I don’t think the Coverdell would work as my son and dil earn a fair bit in the USA. At the moment I have separate accounts in my name in a UK bank for each of the Granddaughters. There’s a few hundred £’s in each but I’d like to make a monthly contribution to them. Presumably I’d need to be in the USA to open a UTMA or UGMA?

I don't believe you do need to be in the USA, but I don't know that for sure. I would have thought the optimal approach would be for your son/dil to set up accounts that they manage and then anyone (including themselves) can contribute money to. It then comes down to whether you want it actually invested in something or just sitting there in cash.