This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Buying Premium Bonds for grandchildren

Mrs G
Posts:1
Joined:Mon Jun 05, 2017 10:31 am
Buying Premium Bonds for grandchildren

Postby Mrs G » Mon Jun 05, 2017 10:46 am

Good morning,
I want to buy equal premium bonds for 4 young grandchildren instead of leaving a legacy for each of them to receive at 21yrs in my Will.
If I open an account in each of their names, then on turning 21yrs, the possibility of prizes could make their gifts unequal. Therefore, can I create an account in the name of my Will's Trustee who would share the total balance equally between the 4 children at around 21yrs? I want to use my Annual Exemption Allowance of £3,000 p/a to do this.
Any advice you can give will be much appreciated.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Buying Premium Bonds for grandchildren

Postby maths » Mon Jun 05, 2017 8:22 pm

I assume you wish to buy the bonds now, not leave then in your will.

One option would be to settle property (eg cash or bonds) on trust for the 4 grandchildren absolutely in equal shares. This would be a bare trust.
Normally, the children would become entitled to any capital/income in the trust on attaining age 18 (not 21)

Alternatively, you could set up a discretionary trust with the grandchildren as beneficiaries (so effectively deferring their interests until age 21).


Return to “Savings & Investments, Pensions & Retirement”