can someone open a bank account for a child without parental concent?

brians_daughter

can someone open a bank account for a child without parental consent?

ok, strange question i know!

Story is a s follows
MIL wants to save for my sons future, which i am so thankful to her for.

But, she doesnt want to save in his 'normal' account or his trust fund account she wants to set up a seperate bank account in his name that only she has access to (finne in principal by me)

Now this is where my problem/concern lies. She is taking of putting ALOT of money in there, circa £20,000 once her house sell completes in next few weeks then regular sums every month.

My issue is I am a student and get a grant as i have limited income and children to support. By her putting this 20k in my sons name it will impact my university funding - even tho i would not have access to the £s, nor would i want access.

I have told her this, and suggested she puts in in a savings account in her own name and then moves it over once i have graduated in 14 months time but she is adamant she is setting account in his name, She says all she needs is birth cert and if i do not supply it she will go and buy one for £10 from local town hall

So, my question is... can she do this? If i was just being funny for the sake of it then fair enough but it will impact my funding for uni by my child having this money (uni have confirmed this is the case)and it really is a case of i may not be able to continue if i cant get the grants etc i should be entitled to

DVardysShadow

brians_daughter wrote: »

My issue is I am a student and get a grant as i have limited income and children to support. By her putting this 20k in my sons name it will impact my university funding - even tho i would not have access to the £s, nor would i want access.

Can you state where you got this info? I think it will make it easier to advise.

farmerboy

Simple answer is, Yes she can, my MIL has done the same for my DD.

Can't see how it will effect your grant, as its not your money but your son's. But I know sod all about grants and student funding.

elektra-2007

Im sure she can...My gran which is obviously my lads Great Gran, opened an account for my lad with her as the trustee. Ive never mentioned it on any forms simply because its not in my name and I had no idea how much was in the account until she died.
If she insists on doing this I would insist she is the trustee and it is held at her address dont ask for any deatils and ignore the fact it is there. After all she could go behind your back and do this anyway and you wouldnt know about it. Is she aware tho that ur lad will be charged tax on these savings? Read Martins money tips, about childrens savings, maybe print it off and show her.

brians_daughter

DVardysShadow wrote: »

Can you state where you got this info? I think it will make it easier to advise.

I have just (today) been through my next year student finance application with a uni advisor (after messing it up this academic year) I was told by uni rep that this amount of money could impact my grant therefore reducing it

I also get assiatance with some of the cost of my rent and the council website states that they ignore a childs savings if less than £3,000 but more than that will change the amount i am granted.

sidi29

This won't affect your student funding as the account is in her name (on behalf of your son) not yours.

paddy's_mum

Sounds a strange thing to say, I know, but what an obstinate, inconsiderate grandma to be lining up all sorts of complications for you .. because it's what she wants to do.

Why can't it be put into joint names of your son and anyone else (his father, perhaps?) who it would be prudent to have as a trustee? If one assumes that your mother-in-law has a will, who are her executors .. or are you one day going to get a nasty shock when she rides equally roughshod over your views/feelings/commitments/life and unbeknown to you, drops that bundle of responsibility into your lap!

The suggestion that she will go behind your back to get the birth certificate (public record or not) has a decidedly nasty smell to it and in your shoes, I'd be telling her that if she insists on having her own way, there will be repercussions. Is years of hostility and bad feeling with her grandson what she wants? Good luck - but ask yourself questions about her motives. Genuine generosity or a desire to control?

tandraig

I may be wrong, but, as far as I know childrens accounts usually are 'managed' by a responsible adult - in this case his gran. she could have done this without telling you. am a bit puzzled as to why you felt the need to ask about this with the funding authorities, as really the account would have nothing to do with you, if you didnt have the authorisation to make withdrawals then it doesnt affect your income does it? I have the feeling the over £3000 limit is for savings accounts with parents names as responsible adults. could be further investigation will show that as you have NO access to funds then it wont affect you.

brians_daughter

paddy's_mum wrote: »

- but ask yourself questions about her motives. Genuine generosity or a desire to control?

Do you know my MIL by any chance, lol!

:rotfl::rotfl::rotfl::rotfl::rotfl:

mikey72

If you as a parent open a childs account, you are the trustee, so the money is nominally in your name, so this will affect your grant. If the MIL does it, she will be the trustee, so the money will be in her name. As far as I'm aware, this shouldn't affect your grant, have you checked under those specific circumstances.
It should still affect your MIL's pension credit (if she's old enough), and other benefits etc, as she will be trustee still.
You could probably deny all knowledge as well, as no mail should be addressed to you personally. Don't give her the birth certificate if you don't want to either, the paper trail will be clearer if she buys her own.

brians_daughter

tandraig wrote: »

am a bit puzzled as to why you felt the need to ask about this with the funding authorities, as really the account would have nothing to do with you

I didn't go and ask, it would never have crossed my mind TBH. I was asked by the uni rep who was assisting me in filling out my student finance forms for 10/11 and he was also doing an 'entitled to' check. He asked about any savings any for me or my children has that amounted to over £3,000.

I simply answered his question. I responded by saying my MIL had intention of setting up an account for my son with £20,000 deposit. He went on to say this would have bearing on my grant and housing help.

Hence my worry now. I assume if someone is being paid to do a job (ie student advisor) that the info they give is correct. He advised she kept the money seperate from my son til next year when i graduate then there can be no come backs/complications.