Grandparents' Guide: Opening Accounts for Inheritance Money

My father has left inheritance money for my granddaughter not to be touched until she is 18. Can I, as a grandmother, open an account, or does it have to be her parents?

My son & his partner are no longer together & my granddaughter lives with her mother. If the parents have to open an account for her, can it be one parent or does it have to be both?

If you want to open a Junior ISA

Only a parent or legal guardian can open a Junior ISA. As a grandparent, you cannot open a Junior ISA unless you are your granddaughter's legal guardian.

The good news: it only takes one parent to open it, not both. And once it's open, you (and anyone else) can pay into it – up to the £9,000 annual Junior ISA allowance. The method varies by provider – for example, some let you pay in by bank transfer using the child's account number and name as a reference.

Why a Junior ISA might be the right choice

Nobody can touch the money until your granddaughter turns 18, when it automatically converts to an adult ISA. That includes her parents, so if you're worried about the money being accessed early, this is the safest option.

Junior ISAs are also tax-efficient: any interest or investment growth is free from Income Tax, Capital Gains Tax, and tax on UK dividends.

One thing to note: if you contribute to a Stocks & Shares Junior ISA, the parent who opened the account manages the investments until your granddaughter turns 16.

If you want to open an account yourself

You can open a children's savings account as a trustee on behalf of your granddaughter. Many banks and building societies allow grandparents to do this. The account would be in her name, but you'd control it until she reaches 18.

Alternatively, you could open an ISA in your own name and save on her behalf. This gives you control over when you give her the money, but contributions count towards your own £20,000 annual ISA allowance.

Next steps

Think about what matters most:

• If it's making absolutely sure the money can't be touched until 18, ask your granddaughter's parent to open a Junior ISA, then pay the inheritance money into it.

• If you'd prefer direct control, speak to a bank or building society about opening a children's savings account as trustee.

For larger sums or complicated family situations, it's worth speaking to a solicitor to make sure the account matches what your father intended in his will.