Bond for grandchildren

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emmage

Registered User
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Hi all.
My mother in law wants to put money in a bond for each of our children from my late father in law's estate (subject to the max she can give tax free, think thats 40,000)...what would you recommend? She doesnt want a particularily high risk one in this current climate. The children are under 10..so dont want it to mature until mid twenties at earliest!

Any ideas?
Thanks a million..
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You must be vary careful whilst Investing for the Grandchildren.This is the kind of Investment that FPs love. Good long term stuff where they will be able to charge crazy fees without interruption. Check the entire market and get everything in writing. Depending on the total amount you might be best to seel the opinion of a Brokedr simply to check what is on offer. Make sure you check the Management Fees. As a guide from myself (and only because I have literally just completed a legal case) would be keep away from Bank of Ireland and / or its subsidiaries.
 
Ok thanks Mercman...who to trust though?! She's recently widowed and was used to her late husband looking after "that side of things". Would the better option be to leave in cash in a bank account? I just dont want kids to get wind of it until they are in a position to actually need it or at an age to use is responsibly!! Thats why locking it into a bond sounded ideal but if we're going to be hit with crazy charges then whats the point.
Also, we she is thinking that it should be done pre budget as it looks like cgt is going to change and rates for grandchildren could change too? Guessing game at this stage I suppose?
Many thanks
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CGT is only payable at the time of an Asset Disposal. Try calling all the Financial Providers -- Standard Life, Friends First etc.etc and then make a determination. Leaving funds in cash is probably the worst thing to do long term.
 
Probably best to put it on deposit. Bonds dont generally have high interest rates and are more expensive to own. She should probably just transfer the money to yourselves and you can put it on 5 year deposit. Also means that you can drip feed the funds to them as they need it and not release 50k to them when they hit 21 which they will inevitably blow on cars and drugs if they are boys and shoes and handbags if they are girls. Alos it would be available to you for college fees, dental work, J1 Visa funding and all the other stuff kids need. Of course she would have to trust that you would not spend it on handbags and shoes yourself!
 
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