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Original poster

£50k gift to grandchildren

7 replies

craftymadam · 30/04/2022 21:25

My DPs would like to gift £50k to each of their DGCs this year, primarily to help them with uni costs if they decide to go.
My DS (15) is the eldest of the DGCs.
I have no idea where to put that money away for them safely. They already have ISAs & savings accounts, but this is alot of money and I'm not sure what would be best to do.
Any suggestions?

OP posts:

alicewasahorse · 30/04/2022 21:27

No guaranteed return but it would be safe in premium bonds and you could get lucky!

CeeceeBloomingdale · 30/04/2022 21:29

I agree with pp, premium bonds are quite easy to access when needed to.

Original poster

craftymadam · 30/04/2022 21:31

That was my first thought actually, as that's where alot of our savings currently are 😆Just wonder if we'd be better doing something else though for the DCs...

OP posts:

Hanab · 30/04/2022 21:35

I keep hearing do not leave inheritance for kids .. probably they may have to pay tax .. perhaps open a trust for each of them them they or you can withdraw it as needed.

Hellocatshome · 30/04/2022 21:38

I would think very carefully about putting it in a trust. If you don't they could get to 18 and make very different choices than you would like them to make with what to spend the money on.

Original poster

craftymadam · 30/04/2022 22:02

@Hellocatshome this is exactly my worry that they'll want to do something with the money that is potentially not what my DPs would want them to do with it... 18 year olds can do daft things and £50k is a lot of money!
We have always taught them about finances and the importance of being financially sensible etc. They know that they have ISAs and that we started pensions when they were born and we openly discuss these with them. We'd like to protect the money as much as we can, a trust sounds like a good option.

OP posts:

BarbaraofSeville · 01/05/2022 05:48

For the 15 YO it's too short a term for an investment product, as you'll need to start using the money in 2-3 years. You could look at a 2 year fixed term savings product, which should pay more than instant access or PBs unless you are really lucky.

For the younger ones, a low risk tracker fund might be the way to go and you could always spread the risk by putting the money in a mix of PBs, tracker fund including ISAs if they have the allowance and fixed term savings, then if the market is down when the oldest one needs the money, you might be able to 'borrow'/swap around the money and take the cash savings instead.

Obviously need to take into account tax rules and it's definitely worth taking advice as to what they are, even if it's just reading the HMRC website, rather than relying on the accuracy and completeness of what is posted on here.

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