Grandparents often dote on their grandchildren, and many want to help with their financial care. Wanting to help children or grandchildren it can be important to do so without risking your own amount of money. Some ways in which grandparents might wish to help is when grandchildren go to university and they could help towards maintenance costs. Investing on behalf of a child and allowing the investment to grow could build up to a helpful amount. Using an ISA could be a tax efficient way to do this. If the ISA is a Junior ISA, set up in the child’s name, any gains will not incur Capital Gains Tax and they will not be considered part of the parents’ or grandparents’ estate for Inheritance Tax purposes. Nevertheless, the child will automatically gain access to the money when they turn 18 and can choose what to do with it.
