financial planning for grandchildren

nothing in my will, only to the 3 AC. 2 have children

8% from my sipp to each of 3 dgc, the rest equally to 3 AC.

A nice sum in premium bonds for each dgc and they re-invest any winnings. That will be out of iht in a couple of years.

All AC are happy with arrangements

We intend to alter our will, as my daughters partner cannot be trusted with money, and I fear he would take any inheritance we asked them to pass on. We are leaving most to our 2 children equally, but placing our son (with his permission) as trustee over our DGS's share. There is also a proviso should he pre-decease his very slightly older sister.

We started paying fifty pounds a month into a savings account for our only grandchild on his first birthday. He is now sixteen. When savings rates dropped through the floor, we drew out the money and added it to a managed stocks and shares ISA that his father had set up for him. We also paid the proceeds of the sale of some shares into it for him. I have continued to pay a monthly amount into it, and it seems to be doing very well. He is also provided for in my will and both my children know this.

what about a bit of tax relief while you are at it

1) parent sets up a personal pension for child with a first contribution

2)grandparent picks up on payments regula or occassional

As a personal pension it attracts as a minimum 20 % income tax relief

Gift £80 - grosses up = £20 to £100

£20 /80 = 25 % gain in year one and on all further "gifts"

works even for a new born babe. Tax relief on tax the child has never paid !

Solves the blow it at age 18 0r more problem !

One child two grandchildren. The whole estate , which is likely to be, minimal cash , a house only is to go to son.
We spend our cash lol

jennymolly

Five years ago my husband and I thought about leaving 15% of our estate to any grandchildren (we were expecting our first grandchild) and the remaining 85% between our son and daughter. We rang our daughter to put the idea to her and as is said 'the s* hit the fan). Both she and her partner went mad and since then haven't spoken to us. No cards or presents at Christmas, birthdays or Mother's Day. Bear in mind we called them to discuss the idea, it was not set in stone. 5 years on I still break my heart.

Wow just wow!! We have done the same, giving over 20% of our estate to be divided between GC without objections. I really hope you disinherit this ungrateful daughter.

In my will my house and any money I have left will go to my 2 children. However I put a regular monthly amount into an investment account for each of my 4 grandchildren which they will be able to access when they reach 18.

It’s yours to do with as you please.
I would think twice about leaving your daughter anything after treating you so despicably.

We have been putting money into Junior stocks and shares ISAs for the grandchildren - 7, 6 and 3 at the moment, so we hope there’ll be a useful sum by the time they can access it at 18.

We pay a regular amount into grandchildren’s bank accounts. We give them extra on birthdays and Christmas etc.

Grannyjacq1

My parents set up what they called the 'music fund' for their grandchildren - I can't remember exactly how much this was, but it was a fairly modest sum which at the time paid for 'extra' things for our children (and all the other grandchildren), such as piano lessons, sports equipment etc. My 'children' are now in their 40s, and still reap the benefits of the extra musical and sporting skills. So we have started making modest payments to our 5 grandchildren to provide them with similar advantages. Their parents decide how the money should be spent to enrich their children's lives. We look on it as a great investment for the future - and there's no doubt that families at the moment need a bit of help with the 'extras' in life!

Precisely.

I give cash for lessons, equipment, etc - to all the parents for GC and GGC. All families can use cash for 'extra things'.

Very true Sawsage.

My parents set up what they called the 'music fund' for their grandchildren - I can't remember exactly how much this was, but it was a fairly modest sum which at the time paid for 'extra' things for our children (and all the other grandchildren), such as piano lessons, sports equipment etc. My 'children' are now in their 40s, and still reap the benefits of the extra musical and sporting skills. So we have started making modest payments to our 5 grandchildren to provide them with similar advantages. Their parents decide how the money should be spent to enrich their children's lives. We look on it as a great investment for the future - and there's no doubt that families at the moment need a bit of help with the 'extras' in life!

I have 2 grandchildren. I pay £25 per month for each of them into the tax free trust funds set up when they were born. I think the maximum you can pay in is £50 per month (their mum pays in the other £25). With regard to ‘when we’re gone’ everything will be left to my daughter. I’ve discussed it with her and she will treat the children fairly from our estate. When we made our wills, the solicitor said, in her opinion, this was the best approach.

Spend your cash now, saves all the hassle.

Divide equally between your offspring.
The grandkids will benefit later down the line.
If, God forbid, one of your immediate children dies then their share should stay in their estate for the benefit of their children, if they have any, if they don’t have a family then their share should go to remaining sibling.

When our eldest GC was born, we were working and started to pay money each month into an investment fund. On birth of 2nd GC we split the fund between them and continued to pay the same amount into the fund only stopping when we retired. Money left to them from their Great GM also went into the fund. We have control of the fund and were able to help first born to buy a car and have just paid out to help his sister do the same. The money is there if they need it but I would never bestow a large amount on a young person. I think they get 5% of our estate when we die but this will be held in trust until they are 25. We have talked to them and they know the investment made on their behalf can go up and down, but when it's gone - it's gone.

That's awful jennymolly. I know it's often suggested that people discuss with AC what their wills will contain but it isn't always a good idea.

Inheritance is a gift, not a right.

Five years ago my husband and I thought about leaving 15% of our estate to any grandchildren (we were expecting our first grandchild) and the remaining 85% between our son and daughter. We rang our daughter to put the idea to her and as is said 'the s* hit the fan). Both she and her partner went mad and since then haven't spoken to us. No cards or presents at Christmas, birthdays or Mother's Day. Bear in mind we called them to discuss the idea, it was not set in stone. 5 years on I still break my heart.

….also my grandchildren will eventually inherit four houses …their mums two… their dads one and there aunt ( no kids) home. All in all as things stand now that would be about £1,500,000 in credit.

My house will go to my two children …and any monies left in any accounts will go to 2 grandkids! My son has no children and is NOT a home owner …my daughter who has the 2 kids has two homes. I will not deprive my son of his share of my house to include the grandkids….if he had kids it might be different.

We have put lump sums into discretionary trusts as stocks and shares for our grandchildren. It means we still have control over when they can access the money. You can do ISAs or premium bonds for grandchildren but they have access to the money at 16 or 18 which we think is too young. Putting the money in trust also takes it out of our estate for inheritance tax. You definitely need a financial advisor or solicitor to do this for you

Take care as others have said a lot of money on their 18th birthday can cause a lot of damage. Probably the easiest is a child ISA held in trust, gifts arent limited to just £3000 you can give more out of “Income” if you can afford it.

Will be divided equally between our AC. Our GC will benefit later down the line!

We won't leave anything to the DGC. We have 9 from our older DC but none so far by the DS in their mid 20s. We could easily die before younger DGC are born. Better for us just to leave everything to be shared evenly between the DC.