Will my childrens savings be taken if i go bankrupt?

Flowersx2

My children have savings that were given to them by their grandparents when born but they are in accounts that i am the trustee for so technically are they in my name and if so will i have to declare them and lose them due to bankruptcy?

JCS1

As long as child's name on the account and you're the Trustee then the money is safe.

Having said that, which bank are they with? Some have been known to try it on with child's savings accounts in the past, so if with one of those banks it might be worth moving them before you go BR.

Flowersx2

Thanks for replying, they are with the Halifax.

JCS1

Close the accounts and set up new ones before you go BR.

Halifax are notorious when it comes to BR and children's accounts. I think I've read posts on here where they're either closed the accounts or tried to offset?

Flowersx2

OK thank you, you've really helped as i had no idea where i could find the answer.

Jens_3

Hi both. I just came across this forum (thank goodness) and I am sort in the same boat as you Flowersx2.

I am about to declare myself bankrupts after struggling for nearly 4 years to get myself out of my financial mess and my businesses closed. I just can't go on feeling so desperate and depressed trying to keep my head above water - even though going bankrupt is totally against my principles I really have no other option.

The only thing that worries me tremendously is how it will effect my children with their possessions and own bank accounts. They have accounts with HSBC at the same branch as me - JCS1, do you think I should open new accounts elsewhere? I don't particularly want to tell the children what's going on - I'm mortally embarrassed about the whole thing - so if I could keep their accounts where they are without them being penalised I would prefer that. Equally I don't want their money seized because of me. They're aged 13 and 15 years.

Any help or advice would be much appreciated.

Carmen_Queasy

Move them and quick! Halifax offset a joint account my ex had overdrawn with my personal one while my lawyer was trying to trace my ex. Maybe your parents could look after the money for you in the meantime?

4$£&*(£$&*(!

Abbey have also been known to lock down a child's account because the trustee was bankrupt and their main account was frozen.

To me it seems completely unethical to do this - I can see some dodgy bankrupts trying to hedge money in a child's account but I'd reckon this is a tiny minority. Most bankrupts are bankrupt because they don't have any money and are in dire straights, penalising a child's account is completely unfair.

Saying this, would we expect any less from banks after the way they've behaved over the past few years, then bled people dry whilst claiming to be poor themselves before paying their chief bosses millions in bonuses, pensions and general wages?!

fiveyearplan

HSBC should be fine.

Halifax search the London Gazette daily looking for account holders who have gone BR.

How old are the children and are they old enough to open accounts in just their names? I'm sure my children were 5 and 6 years old when they opened their accounts and I have never been a signatory or trustee to either of them.