Investing for a grandchild but retaining control of funds

EmmaMc

Hi there.  I'm currently considering options for investing for grandchildren whereby the client can retain full control of the funds and distribute them when say each grandchild is 21.  I know this rules out many of the investments held in the grandchildren's names.  We're looking at discretionary trust options but does anyone have any thoughts or ideas on this that we perhaps haven't considered?

Thanks!!!

Jona

I think IOMA have a product specifically designed for that sort of situation.

EmmaMc

I'll check it out, thanks Jona!!!

EmmaMc

Hi Jona, I checked this out.  Sounds like a great plan but unfortunately with the minimum investment being £250,000, it doesn't fit the bill this time.  Will keep it in mind for future cases though. Many thanks.

Caro

Hi Emma - is IHT an issue for them? If the key driver is retention of control rather than tax reasons, they could just invest the monies in say a collective investment fund on one of the platforms, designated for the children but still owned by the grandparents.  

There is no gift and so it is still in the estate; the grandparent is liable to any income and gains but if this is not the issue and the priority is control, this may be an option.  There is more info on this on the Old Mutual website. 

https://www.oldmutualwealth.co.uk/Adviser/literature-and-support/knowledge-direct/trusts/absolutebare-trust/designated-accounts-explained/

Hope this helps!