How can I save for a grandchild or godchild?
You can save and invest for a grandchild or godchild with funds or stocks. Saving through insurance for a child is possible without the separate consent or authorisation of the parents of the godchild or grandchild.
Saving through insurance with OP Unit-linked Insurance, or endowment insurance, is a flexible way to invest in funds on behalf of a child. Select a child as the beneficiary and begin saving with a monthly sum such as 100 euros a month or a one-off investment. The funds are transferred to the child selected as the beneficiary once the policy ends. You can choose the end date yourself. The end date cannot be sooner than 3 years after the start date. During the policy's validity, you can change investments within an insurance wrapper without tax consequences. You will not have to pay tax on your accumulated returns when changing investments, as returns are only taxed when the savings are withdrawn.
You can also transfer funds to the child's account, after which the guardians can put the sum in an investment fund or stocks. You can automate monthly transfers to the child's account, for example. The parents can in turn set up monthly investments, automating the entire process. You can begin monthly investment in a fund on behalf of a grandchild or godchild with just 10 euros a month.
The child's guardians can authorise the godparent or grandparent to manage the child's investments. The authorisation can be granted at an OP cooperative bank.
Good to know about taxation when saving for a godchild or grandchild
You can gift 138 euros a month, or 4,999 euros over a period of three years, in money or other property to a godchild or grandchild without tax consequences. The limit of 4,999 euros is individual, which means that both grandparents or godparents can gift the sum to a child without paying gift tax. The return on investments is taxed once the funds are withdrawn.
How to gift your own fund units or stocks
You can gift your own fund units or stocks to a child, godchild or grandchild. Draw up a deed of gift for the fund units or stocks between the donor and recipient. Send the deed of gift to us by message on OP-mobile or at op.fi. We will take care of transferring the fund units or stocks.