We are doing the same for our grandson....you might want to look into Paul Merriman's "Crummy Trust".....he's got a plan with annuities for his grandchild that takes $10,000 does what you are planning....we've debated whether to do this or stocks, but this way the grandson cannot get his hands on the money until later, unlike other methods, AND, you don't have to MANAGE, or pay OTHERS to manage it. Just a suggestion.
Hmmm...that sounds interesting. Worth a look-see, anyway. Thanks for sharing!
Merry Christmas.