Regret getting trustee account for my daughter - what to do now?

cooliegirl

Hi

My daughter is 10. I have had an account with santander in her name since she was born, the purpose was to save for University/deposit on first home, that sort of thing.

I wish I had just saved the money into an ISA or a regular saver but at the time I thought it was the best thing to do - I really don't want her to have access to this money at the age of 18!

Ideally I'd like to transfer the money into an ISA in my name (it would stand to gain much more plus I can have control over the money) but because it is in her name the money can only be transferred to an account in her name.

Any ideas on what I might be able to do?

Thanks
Sam

BJV

I have done exactly the same thing but with Nationwide for my daughter and Halifax for my son. I was under the impression that when they became eighteen they still needed my signature to withdraw any money. The idea was that we would decide what to do at the time and re-invest if that was the right thing to do?

Hope I am right. I really do not fancy them having full access and know exactly where you are coming from.

CLAPTON

BJV wrote: »

I have done exactly the same thing but with Nationwide for my daughter and Halifax for my son. I was under the impression that when they became eighteen they still needed my signature to withdraw any money. The idea was that we would decide what to do at the time and re-invest if that was the right thing to do?

Hope I am right. I really do not fancy them having full access and know exactly where you are coming from.

at 18 the money is theirs to use as they wish
no question about 'we'

cooliegirl

Is it not possible to withdraw all of the money now with both signatures?

Mikeyorks

cooliegirl wrote: »

Is it not possible to withdraw all of the money now with both signatures?

If it's a 'trustee' account - surely it is in your name? And you will therefore be the sole signatory.

cooliegirl

Mikeyorks wrote: »

If it's a 'trustee' account - surely it is in your name? And you will therefore be the sole signatory.

It is a trustee account but I have been told by Santander (today) that I cannot withdraw the money. I will give them another call tomorrow, maybe (hopefully) I was wrongly advised.

Mikeyorks

That would not be unusual for Santander. The account is surely 'Mrs Cooliegirl In Re Daughter Cooliegirl?' ? In which case the account is in your name / you have total jurisdiction over it - and are the sole signatory.

Either get online access and transfer it - or go in and demand cash. You're totally right to want to keep some hold over it after age 18. Some are sensible at that age - a lot aren't.

CLAPTON

if it's in trust for your daughter then although you can withdraw the money it must be re-invested for the benefit of your daughter

legally it is hers and not yours

at 18 she has sole control; it would be illegal for you to prevent her having access.

cooliegirl

Finally got this sorted out, after another call to Santander today, I discovered that I was given the wrong advice yesterday. Have moved all of the money out today into an ISA :-)

maypole

Just goes to show you should not accept the first answer, always double check

xylophone

I hope this is a JISA - and she does have the right to access the money at the age of 18. http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672
If you were holding the money in the original account as her bare Trustee, then the money is hers absolutely and she had the right to access to it at the age of 18. Was it taxed correctly? See http://www.hmrc.gov.uk/tdsi/children.htm and http://www.hmrc.gov.uk/trusts/types/bare.htm

You can only subscribe your money to your ISA - the money in the account was your daughter's.