Supporting grandchildren in uncertain times

Inheritance and estate planning
Views & insights

From Junior ISAs and trusts to gifting, discover four ways to help support grandchildren in a tough economic environment


24 May 2023 | 3 minute read

Your grandchildren could face significant financial challenges in an uncertain economic environment.

University tuition fees have topped £9,000 a year1, and the average UK house price stood at £287,506 in February 2023 – that’s 71% higher than a decade ago2. Coupled with the rising cost of living, it has become increasingly difficult for today’s young people to save and invest for the future.


Download: A guide to inheritance tax planning

Everything you need to know about leaving a tax-efficient legacy for your loved ones.

Download now


If you are looking for ways to support your grandchildren, these are some of the steps you could consider.

Save into a Junior ISA

If your grandchildren are still young, investing into a Junior ISA (JISA) is a great way of building up money for their future. You can invest up to £9,000 into a JISA in the 2023/24 tax year and dividends and growth are tax free. While only parents or legal guardians can open a Junior ISA, anyone can contribute – be they grandparents, godparents, or family friends.

The child can access money in a JISA at age 18, using this however they wish – perhaps towards university costs, or building a property deposit.


Invest for your child’s future today

From just £500, our Junior Investment ISA offers access to a range of investments chosen by our in-house experts. Open an account online in a few simple steps.

Find out more


Make use of bare trusts

If you hold assets on behalf of a child in a bare trust there are no investment limits, and money can be used at any time for the child’s benefit, such as towards school fees.

Gains or income on investments held in a bare trust can use the child’s personal tax allowances. The account can remain open beyond the child’s 18th birthday, although at that age they become legally entitled to access the money if they wish.

Pay into a junior pension

If you would like to give your grandchild a head start for retirement saving, a junior pension is an attractive option. You can save up to £2,880 a year – boosted by tax relief from the government to a maximum of £3,600 a year. Anyone can invest on behalf of a child into a junior pension, but only a parent or legal guardian can open the account.

Make a gift count

For older children who have more immediate financial needs, you may wish to consider gifting some of your wealth. Each year you can give away up to £3,000 which will not be subject to inheritance tax (IHT) when you die. You can also give £250 to any number of people each year, free from IHT.

It is possible to make larger financial gifts – known as ‘potentially exempt transfers’ – but you must survive for at least seven years after making the gift for it to be tax free. The rules around tax-efficient gifts are complex, so make sure you seek professional advice.

Next steps

It can be tricky knowing when and how to give money to your family alongside securing your own financial future, and that’s where getting some smart advice can help. A financial adviser can build a tailormade plan that helps you and your family build the financial security you need today and in the future.


Get financial planning tips straight to your inbox

Sign up to our newsletter for expert insights on investing for the future, saving for retirement, passing on assets to the next generation, and much more.



The value of investments, and any income from them, can fall and you may get back less than you invested. This does not constitute tax or legal advice. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Information is provided only as an example and is not a recommendation to pursue a particular strategy. Information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness.

Is your legacy tax efficient?


We can help you pass on your assets securely and efficiently to the people you care about.

IHT planning

More on this topic

Tax-efficient gifts and the seven-year rule

Inheritance and estate planning

You may be interested in

How to invest a £500k inheritance in your 60s

Inheritance and estate planning 3 min read
How to invest a £500k inheritance in your 60s

Markets strong as S&P 500 passes 5,000 mark

Market news 5 min read
Markets strong as S&P 500 passes 5,000 mark

Understanding your pension annual allowance

Pensions and retirement 3 min read
Understanding your pension annual allowance

The value of investments and any income from them can fall and you may get back less than you invested.