Advice on children's savings

adoptedcardi

Help, I really need some advice on children's savings please?
I inheirited some money & the person concerned asked that I use some of it to help out the children in the family when they get to driving age etc.
Rather stupidly, I just left the entire amount in a savings account in my name. As I am now facing a divorce, my Ex could potentially claim half of the money originally intended for the kids
I want to transfer the relevant amounts into accounts in their names, or in my name, but with their name shown if this is possible, until they're 17.
Every time I try to do this, I am told it's not possible as I'm not their parent/guardian. The problem is their Parent/guardian can't be trusted not to withdraw & blow all the money, hence why it was left care of me in the first place!

tyllwyd

Have you consulted a solicitor?

If you can prove that you inherited the money and that it has been kept in a separate account in your own name and not mixed with your joint assets, I think you have at least a good chance of keeping it separate from your divorce.

http://www.holmes-hills.co.uk/articles/for-you/divorce-settlements-and-the-risk-to-your-inheritance/

The important thing will be to get professional advice sooner rather than later to make sure this is clear from the start.

xylophone

Presumably you have your own solicitor acting for you in the divorce so you could discuss the matter with him/her.

Once you've established that you can proceed with making gifts to the children, perhaps you could approach the parent and advise that you wish to pass on £x to each child (as requested by YYY) but that the cheques will only be drawn in the child's favour - the best thing might be to specify that the accounts will be fixed rate bonds (for the appropriate period - 2, 3, 5 years to 17th birthday) in the child's own name. At least the money would be inaccessible for a long period but the downside is that interest rates might rise substantially during the period. He will no doubt be willing to sign the R85's-( I take it none of the children have income above the personal allowance) since presumably he wouldn't want them to lose out!

Be!aware that each child will have to complete an R85 for him or herself after turning 16. http://www.hmrc.gov.uk/incometax/tax-free-interest.htm


Otherwise look here http://www.moneysavingexpert.com/savings/child-savings-tax-free for an account where someone other than parent or guardian can be Trustee - it looks as though the parent would still have to sign the R85 though.