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

Pinzy

The advisor simply asked if your children will have any savings, to which you replied yes. So advisor gave stock answer "it will affect your funding".

To be fair, the advisor may not know about the nitty gritty of whether or not that rule applies if your children have savings that you will have no access to. They are after all a general advisor, not a financial specialist in trust funds/savings.

So don't take the advisor's advice at face value, they may simply not know any better. As it's your fiddly situation, unfortunately it's down to you to figure out. I would advise writing to the Finance Dept. of the insitution, explaining the situation. Asking them that if they are certain that it will still affect your funding, please provide references for where they got the information. (Writing gives them time to research which they won't have time to do over the phone.)

HTH:)

magpiecottage

As Mikey72 says, this is a Trust and you are neither the legal owner (because you are not a Trustee) nor a beneficial owner (because it can only be used for the benefit of your child at the sole discretion of the Trustee(s)).

So it is not your money in any sense and should not affect you.

You don't say how much your Mother-in-Law's estate is worth but from an Inheritance Tax point of view, the £20K will count as a potentially exempt transfer. If she survives for 7 years from the date it is paid the estate will reduce by this amount.

Regular payments will reduce the estate size by the amount paid as and when they are paid provided this does not affect your mother-in-law's standard of living.

A bit morbid I know but might be worth knowing.

And so what if she is trying to control how her money is used. I was going to say "don't look a gift horse in the mouth" but that might insult her. I think a simple "thank you" is probably what is needed.

exil

It is perfectly legitimate for someone to set up a trust fund for a grandchild, to which the child is not allowed access to until a certain age. It's not "sinister"! It's a way of giving someone an inheritance in advance (and therefore the 7 year inheritance tax rules apply). It's NOT part of the child's savings as they cannot access the money at the time of applying for student finance.

choccybuttons

Hi

My son has several accounts by different relatives and non of them affect my finances. I might be wrong but doesnt a child under 16 have to have an adult named on their savings?

DVardysShadow

magpiecottage wrote: »

As Mikey72 says, this is a Trust and you are neither the legal owner (because you are not a Trustee) nor a beneficial owner (because it can only be used for the benefit of your child at the sole discretion of the Trustee(s)).

So it is not your money in any sense and should not affect you.

That makes sense

magpiecottage wrote: »

You don't say how much your Mother-in-Law's estate is worth but from an Inheritance Tax point of view, the £20K will count as a potentially exempt transfer. If she survives for 7 years from the date it is paid the estate will reduce by this amount.

Regular payments will reduce the estate size by the amount paid as and when they are paid provided this does not affect your mother-in-law's standard of living.

A bit morbid I know but might be worth knowing.

And so what if she is trying to control how her money is used. I was going to say "don't look a gift horse in the mouth" but that might insult her. I think a simple "thank you" is probably what is needed.

OK, this does look like the reason she is adamant about doing it.

I do think MIL should enter some discussion to find a way of doing it without causing difficulty to OP.

savingmummy

My in laws opened accounts for both my 2 children. I sent them their birth certificate in the post and then they sent them back to me oh and i had to sign a tax form.
I don`t even know what bank/account or how much is in their accounts. So yes they can open an account x

moneysaymoneydo

I find it extremely hard to see how someone else having the account can personally effect you? i mean you might not even know about it or there could be 4 grandparents all doing the same, i would really like some proof in how this can reduce your grant?????

moneysaymoneydo

and i dont see what it has to do with you anyhow? its your sons money simple dont mean to be rude but i would open whatever accounts i like for my grandsons and most likely wouldnt even mention to my son unless up in conversation!

freeasabird

I put money into my nieces and nephews bank accounts but if I wanted to, I could open a bank account for them and put in money without telling the parents. Why your MIL is putting giving you money in a way that may have an impact on the child (and you) now rather than help him in the future is beyond me.

CAll me suspicious but is your MIL trying to hide money but keep control of it or she really does want to give her grandson money but keep a firm grip on it i.e. the money comes with strings attached?

I'd tell her to set up her own account for the child and keep you out of it. Does your MIL realise how inconvenient her 'gift' might be?

brians_daughter

moneysaymoneydo wrote: »

i would really like some proof in how this can reduce your grant?????

As would I , hence asking for advice from various places ie here, the student forum, senior uni advisor as well as Student finance

As already discussed on this thread earlier university student services gave me info. Thanks to ppl on here who have given sound advice I have spoken to student finance who are sending me a detailed explaination.