Savings/invest acc for family members child locked until 25
Discussion
I apologize in advance if this question has been covered in previous topics. I have used the search prior to my post.
My nephew has just announced he will soon become a father (at the ripe old age of 24 and living whilst living with his mum. That discussion may be for the lounge!)
Opening a savings/investment account on behalf of someone else is not a situation I have been in before. I have the added complexity of now residing in the United States but do make annual trips back to the motherland.
My research has indicated Premium Bonds, Child ISA or a Child Bank account. These all seem feasible but ideally, I would prefer to lock the funds until an age beyond 16 or 18 which appears to be the limit with most of these options.
My nephew has just announced he will soon become a father (at the ripe old age of 24 and living whilst living with his mum. That discussion may be for the lounge!)
Opening a savings/investment account on behalf of someone else is not a situation I have been in before. I have the added complexity of now residing in the United States but do make annual trips back to the motherland.
My research has indicated Premium Bonds, Child ISA or a Child Bank account. These all seem feasible but ideally, I would prefer to lock the funds until an age beyond 16 or 18 which appears to be the limit with most of these options.
Frogmella said:
My research has indicated Premium Bonds, Child ISA or a Child Bank account. These all seem feasible but ideally, I would prefer to lock the funds until an age beyond 16 or 18 which appears to be the limit with most of these options.
Premium Bonds - My wife was given some of those when a child. That sum of money placed into equities would now have become a very worthwhile amount, as well as also producing an income. As it is, having never won any prizes, cashing in now could only buy a few weeks worth of newspapers. What a dumb gift that turned out to be.
Illustrates the futility of any long-term cash, or cash equivalent investment, attempting to battle unsuccessfully against inflation .
The US residency might be a complication for you to do this, but I give equities to grandchildren at intervals. They won't get their hands on the money until they are beyond the age you mention, because although the holdings are now their assets (they don't know), they are registered as designated accounts, so 'under the eye' of the parent. Exactly the same method was used for the earlier generation, which eventually produced first home deposits for two children. After thirty years, they were two very much appreciated gifts.
Edited by Jon39 on Tuesday 29th March 16:30
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