US based toddlers receiving funds from UK based grandparents?

[sdem2]

Hi Community -

We have two toddlers and live in the US. Their UK based grandparents would like to gift them lumps of cash on birthdays/Christmas etc. We’ve run into road blocks.

• Trying to set up an arrangement where UK-based mother can give cash to my US-based children (both under 4)
• Would like the accounts under the kids names so they feel like they’re giving direct to them/their future
• Have researched options but can't find any savings/checking accounts for kids of that age based in the US that can accept money from my mothers UK account
• Have a Wise account which I've personally used for transferring money from the UK to US and have a Chase account for local banking
• Can anyone recommend the ideal set up with the least amount of effort so 1. my mother feels like she's actually giving to my kids and 2. my kids actually have the money in an account with their name on it?

Thank you for sharing any experiences!

 

[tyler112]

@sdem2 UTMA/UGMA, and either wire/SWIFT (fees) or just go through the mother's account. Tax-wise it doesn't matter; it's still a gift from grandparents to grandchildren. If over $100k, the child will need to report gift from NRA on form 3250. No tax on recipient of gift.