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Grandparents paying into Junior ISA

5 replies

Crunchybiscuit1 · 12/05/2024 09:07

My little boy’s grandparents would like to contribute £50 monthly to his Vanguard Junior ISA. They want to do this by monthly direct debit for convenience, but the Vanguard website only has the option of making a one-off payment as a gift.

To get round this, could they set up a monthly standing order to their adult son’s bank account and then he can pay it into our little boy’s Junior ISA?

OP posts:
TemuSpecialBuy · 12/05/2024 09:09

Yes.
or they could just give him £600 at Christmas/ his birthday / whenever

Crunchybiscuit1 · 12/05/2024 11:43

I’m thinking of any gifting implications - the amount would be less than their £3,000 annual exemption or would be classed as normal expenditure out of income. But are there any issues with the money passing through my husband’s bank account first ie that it was given to him, but was ultimately intended for our son?

OP posts:
Tooski · 12/05/2024 12:47

But are there any issues with the money passing through my husband’s bank account first ie that it was given to him, but was ultimately intended for our son?

No, it is given to him on trust.

littlematchstickgirl · 12/05/2024 13:38

I am under the impression that the Vanguard JISA has the ability to pay monthly instalments into it.

It can be opened with a lump sum, then I'm sure you can add to it monthly also.

Crunchybiscuit1 · 12/05/2024 14:46

Thanks for your replies everyone. The grandparents want to set up a regular monthly payment, which isn’t possible with Vanguard as they don’t manage the Junior ISA. They would need to make the effort to go onto the Vanguard website monthly to make gifts.

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