One option would be to create a bare trust
with the money.
If it is a bare trust
or an absolute trust, then the tax will be levied upon the beneficiaries.
However, if you open a bare trust
in the UK, there will be no tax to pay on interest from savings unless the child has income of more than the personal allowance.
The named beneficiaries of an absolute bare trust
cannot be changed and are entitled to the trust fund when they reach the 18.
A Under intestacy, what is set up is known as a bare trust
for the benefit of your daughter.
If the grandparents put money into a bare trust
for a child, the investment is taxed as if it is the child's, so there is unlikely to be income tax to pay.
QI waS reading your section recently in which you mentioned unit trust and bare trust
saving plans for children.
A bare trust
, also known as a simple trust, is one of the most basic and easy to understand forms of trust.
It is often held in a bare trust
for legal reasons designating the child's initial on the application form.