Investment in a (non-Irish resident) child's name

bbosco

Hi,
I have a godson who lives in the Netherlands and I'd like to lodge or invest a certain amount every year on his birthday and then present him with what should be a nice little lump sum on his 18th birthday.
I'm racking my brains trying to think of how to do this. I can't open an investment account in his name (or can I?). I've looked at prize bonds but the bond holder has to be resident in Ireland. Is there anything I'm not thinking of?
I know there are workarounds for this. I could open an account or buy bonds in my name and simply send him a cheque on his 18th birthday but I'd like something that's his from day one, so on each birthday he can see his little lump sum growing. I could also arrange something with his parents but I'd prefer for it to be directly from me to him as the parents would most likely, out of politeness, tell me there's no need or it's too much etc.

Any ideas would be much appreciated.
Thanks.

Dr.Glockenspiel

One way a donor can make a donation is by declaring a trust in favour of the donee and nominating himself to be a trustee of that trust. You could create a share trading account in your name, and contribute to that account using your own funds, but nonetheless carry fiduciary responsibilities toward the donee under the terms of the trust. Such fiduciary responsibilities (including ownership rights) would be enforceable by the donee in a court with equitable jurisdiction (his place of residence being irrelevant). The companies acts preclude mention on the role of a company to beneficial interests held in shares; they do not preclude the creation of beneficial interests in shares (as this would be ridiculous). I would consult a solicitor about drawing up the Trust Document (this should be fairly straightforward). I think that recent case law requires the donee/beneficiary to sign the share/deposit account mandate.