How do I save for my US-based grandchildren who both hold duel UK/US citizenship?

I am a grandparent living in the UK and I want to save for my two grandchildren resident in New York. They are both dual UK/USA passport holders. My son is married to a US citizen.

The most efficient way for grandparents to save for their grandchildren is through Junior ISAs. However, the child has to be living in the UK, not just have citizenship.

The other issue relating to US citizens is that the US government has more onerous tax rules which take into account worldwide assets and income. I am not an expert in US tax so can't provide a definitive answer or options but it does make things more restrictive.

Even if you were to establish less tax-efficient investment accounts in their name the same US tax issues may arise.

An alternative approach could be to invest the money yourself and earmark it for your grandchildren, but that may have tax issues for you (both income and capital gains tax in your lifetime, or IHT on death).

Or, you could give the money to your son with the direction that he finds a suitable US investment for children.

I hope this helps.

Andrew