Investing for new Grandchild

AFAIK you need to set up a trust if they won’t be able to access it before 25.
We have set up stocks and shares ISAs for Gdcs, in the hope that a) it will have grown quite a bit before they’re 18, and b) that they’ll be sensible enough not to blow it all straight away. (We wouldn’t mind them blowing a bit, though.)

PS: We did set up a trust (without an IFA). It comes to an end when the oldest turns 25, and will be divided between all grandchildren (alive / in utero).

That doesn't cover all eventualities, but it keeps it fairly simple, and we've explained that we don't want to spend a lot of money on setting up something complex, on the off-chance of a late grandchild. Assuming we are still alive and compos mentis, we can change it.

Definitely look on MSE. However, I agree with Ilovecheese - think very carefully about treating grandchildren equally.

You may wish to consider how much you can set aside monthly, and possibly set up a trust to be divided in the future.

Simplest is to say in your will that the money 'In Toytown Bank account # 1 is to be divided between grandchildren' but some people want to take tax advantages by setting up trusts.

You need to consider what happens if you get several grandchildren. Also, even if you can afford to put aside a monthly sum for each, how do you even up at your death if they haven't all reached 25?

These can all be dealt with, but need some thought.

I personally am wary of IFAs but that's probably because I don't have enough money to make it worth paying them!

As with Juno56 when our granddaughter was born her Mum on our behalf opened a Junior Stocks and Shares ISA with a company called Vanguard.This was recommended by our financial advisor. We put in a lump sum but you can contribute monthly. So far its doing really well even with the downturn in the economy. As you say check with your own financial advisor.

MSE has some excellent advice about investing for children.

When our granddaughter was born we asked her parents to open a Junior Stocks & Shares ISA in her name. A JISA must be opened by a parent or guardian but anyone can pay into it. My husband and I separately pay a monthly amount into the account. The annual allowance is currently £9000 but we don't contribute anything near that amount. She will have access to the proceeds when she is 18, at which time the hope is that they will have grown into a decent amount. If you wish your grandchild to benefit at 25 and/or you will be contributing more than £9000 annually I believe investments held in a bare trust are what is required but I'm afraid I don't know much about them.

Will this be your only grandchild though? Only start what you can comfortably continue if another few grandchildren come along.
Kim19 I thing George Osborne put a stop to that ISA scheme.
I think your idea of premium bonds is a good one.

I seem to recollect there was an Isa introduced for this purpose with some input being made by the government? The other thing I would consider is investing in a regular premium bond purchase. Not sure of the minimum purchase nowadays. This would have to be done with care as any large win may unintentionally disadvantage any subsequent GC. I've currently organised all wins to be divided equally whereas capital is personally allocated.