Help... Thinking about IHT, money for grandchildren etc. Any advice

When DH drew down is 25% from pension it was put into trust funds for 2 youngest children and our grandchildren. As long as you survive 7 years from this date you will be ok tax wise, but, and I could be wrong, I think the money is best taken out before the 10 year mark.

For the older grandchildren they used it for gap years and uni, our 2 are using it towards house deposits (small rentals) and Uni.

I have one grandson who lives abroad. He was born here and has retained his UK bank account. I set up a DD of £250pm giving him the maximum annual amount of £3,000

I think I’m right in saying that a parent needs to open a child’s ISA, even if only the grandparents are contributing to it.

My daughter and daughter-in-law have both opened their own savings accounts for their children.
I've set up a monthly standing order to each one. They were happy with this.

First, can you work out whether IHT is likely to be relevant in your circumstances?
Money Saving Expert website and its Forum is an excellent source of information especially about savings.
I think I’m right in saying that a parent needs to open a child’s ISA, even if only the grandparents are contributing to it.
Another possibility is to save in your own names but earmark the funds. Gives you room for flexibility if circumstances change.

Thank you really good ideas here. We aim to definitely make some arrangements this month.

The simple solution is a junior ISA you can do lump sums or monthly payments, they get access at 18 no tax and a good rate of interest. For larger amounts you do need specialist advice.

We have been putting cash into Junior S&S ISAs for the Gdcs - now 11, 9 and 6 - for a few years now.
We just have to hope they’ll have the sense not to blow the lot at 18. I wouldn’t blame them for blowing a little of it, though….

I’ve already drafted letters for them, to be opened on their 18th birthdays, in case dh and I are no longer here! Emphasising how much harder it is to earn or save money, than to spend it, not mention that they’re unlikely to be given a similar sum any time soon, etc.

MoneySavingExpert Martin Lewis is good place to start:

www.moneysavingexpert.com/family/reduce-inheritance-tax-gifting/

Here's his podcast on BBC Sounds:

Inheritance Tax & Probate: What you pay, what you needn’t pay, how to find the cash, trusts, probate, gifts & more.

www.bbc.co.uk/sounds/play/p0j4p5c7