how can I save money to my grandchildren which they can't touch till they're 18?

Question

I want to save money for my grandchildren which is tax free and is not part of my estate

Answer 1

open a time deposit account...

Answer 2

if you want financial advice then you might want to contact an independent financial advisor.

There are 2 reasons you might want to do this:

1. If they are good they will get you the best returns on the money as it sits doing nothing all that time
2. They should have alot of other useful ideas such as... perhaps 18 is too young for them to have all the money, maybe you should give some at 18 and some at 21 when they are more mature... it really depends on what you want and what they are like, eg are they responsible with money etc.

Good luck with it!

:-)

Answer 3

Depends on how much money. If it's a substantial amount, you can set up a trust fund. With a trust, you can set the terms under which money can be drawn (use for college, age 21, marriage, etc.).

For smaller amounts, just open a savings account and don't turn it over to them until they reach 18. To ensure they get it if you die before then, make sure you have a will that stipulates they get the account.

Answer 4

You can open a trust fund for them, which is basically their account which they can't touch until they're 18.

However, I don't think that's the best bet. You should just set up a separate account in your name and save it for them. Depending on their maturity, they may or may not be ready for it when they're 18. As terrible as it sounds, if they're wasting all their cash up the pub and not paying any rent, then you're not going to want to give it to them. Very strange how things change as we grow up.

Another thought- DON'T tell them about it. If they do go down the wrong path, any cash-flow problems they have, they'll be at your doorstep.

Answer 5

Set up a trust fund with your bank, in your grandchildren's names. You can decide what date it is released to them.
I would also recommend stating the existence of the trust fund in your will, so that if, heaven forbid anything was to occur before that time, there will be no grey areas, and everything would go ahead smoothly as you intended.

Answer 6

Child Trust Funds might be an option. I have 3 children all of whom have Child Trust Funds. I contribute to these every month and the money is locked away until they are 18.

Answer 7

A trust is one way of doing it, and the trust can be fairly simple to set up if you like to provisions of the Uniform Gift to Minors Act or Uniform Transfer to Minors Act in your state. Another way is to establish 529 accounts for your Grand-children's college education. This has some tax advantages provided that the money is used for qualified education expenses.

Answer 8

GO TO A BANK AND OPEN UP A SAVINGS ACCOUNT AND TELL THE BANK YOU DO NOT WANT THEM TO HAVE THE MONEY UNTIL THEY TURN 18 THEY WILL BE ABLE TO THIS

Answer 9

There are regular Bonds you can have which mature at the child's 18 Birthday....
Or alternatively you are able to place in trust in joint name with yourself.

Answer 10

don't tell them about it until they are 18.

other than that, i would go to a bank and speak with a financial advisor about setting up a trust.

Answer 11

Open an account in their name but put you as the person that controls the account. my mum has done it for my son. The account is in his name, but my mum has full control untill he is 18.