Child savings

sueward

I have a savings account for each of my grandchildren that they will receive when they are 18. The accounts are in my name and 'in trust for' each of them. I can move the money around and take it out if I want to and I am wondering if it would be possible (and legal) for me to transfer the money to my account and write a cheque for the eldest grandson who is coming up 18. The bank want me to transfer the account wholly to him, but that takes out the surprise of the gift as it requires his signature, birth certificate etc. while I would prefer to give him a cheque that he can put into his own existing account, rather than start an account with a different bank.
Anyone have any ideas?
These accounts were started before the govenment trust funds and seem to be much more flexible.

Reaper

There may be inheritance tax complications if you put the money in your own account then pay it out to him because it may be mistaken for a gift. This does not happen if it is currently in trust because it is considered his money already.

The simple solution is to ask the building society to close the account and write the cheque out directly to him. There is no need for it to pass through your bank account.

Reaper

PS The building societies used to offer the option of having the account in your name "Re: the child". That is not a proper trust at all - the money is yours not the childs. If this is what you have then it doesn't matter what you do because the money would be liable to inheritance tax if you die within the next 7 years regardless.

Clarck

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CSK

sueward

the info in your reply was very helpful and has taken the angst out of the proposed gift. All the accounts are titled Sue Ward In Trust for... with the various names of my granchildren included. I can actually move the cash around them if I want, so seems on the face of it that I can do what I want. Getting a direct cheque (or transferring the cash to my account and writing my own) is a real easy option. Brilliant