Should you save in a parent’s name or a child’s name? There are advantages and disadvantages to both options. Taxes are not affected by either option, as children are included in their parents’ tax assessment.

Saving in a child's name

Advantages

  • Chidren’s funds are not part of parents’ assets in the event of divorce or death
  • Transferring assets between generations: Savings or endowments from each parent or grandparent may not exceed 0.5 G*


Inconveniences

  • Assets exceeding a given amount will lead to a reduced scholarship from Statens Lånekasse (the Norwegian State Educational Loan Fund)
  • When a child’s assets exceed two times the National Insurance Scheme’s basic amount (G), Act relating to guardianship for persons who are legally incapable (the Guardianship Act) may take over the management of the funds. This may be avoided by writing a gift declaration

Saving in a parent's name

Advantages

  • Parents are free to manage the funds as they see fit
  • Does not limit scholarship opportunities

Inconveniences

  • Funds are part of parents’ assets in the event of divorce or death

Children should also have their own savings account

Regardless of the name you choose to save in on behalf of your children or grandchildren, children should also have their own savings account. This will help teach them the value of saving and spending wisely.
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The value of 'G'

* G is the National Insurance basic amount and is valued at NOK 79,216 as of 1 May 2011.