Grandparent saving for child

joyh

Hi

I would like to put a sum of money in a savings account for a child, but so that the parents cannot withdraw it.

Preference was premium bonds with wins re-invested, but it seems that if I put the money in, the parents could withdraw it.

Does anyone know what else could be done, please?

Thanks

Joy

xylophone

You can open an account as "bare trustee" for your grandchild but you will need one of the parents to sign the R85 (assuming the child is a non-taxpayer, as is usual unless he is a child actor/model/heir to a fortune etc).

See http://www.hmrc.gov.uk/tdsi/children.htm and note what happens when the child turns 16.
http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm if ever it becomes relevant in conjuction with http://www.hmrc.gov.uk/rates/it.htm
http://www.direct.gov.uk/en/moneytaxandbenefits/managingmoney/planningyourpersonalfinances/dg_10013916 might also be of interest.

You are not confined to children's accounts - you can open any that can be held in trust.

jennifernil

Interestingly, I recently opened Kids Regular Saver accounts for my grandchildren with Halifax, and had the signed R85s with me, but they said they no longer needed them.

They now just do the registration on their system when they open the account, and send out a letter confirming the registration.

I was quite surprised!

xylophone

I

nterestingly, I recently opened Kids Regular Saver accounts for my grandchildren with Halifax, and had the signed R85s with me, but they said they no longer needed them.

They now just do the registration on their system when they open the account, and send out a letter confirming the registration.

I was quite surprised!

http://www.hmrc.gov.uk/tdsi/children.htm
"A parent or guardian must complete form R85 with the child's details and sign it on his or her behalf. It cannot be signed by a grandparent, foster parent or trustee of the account unless they are also the child’s legal guardian."

jennifernil

Yes, I am aware of that, but Halifax don't seem to be bothering!

I opened the first account in late March in their Knaresborough branch, gave them the form, but they insisted they did not need it. I asked them to take it anyway as we were about to go abroad for 2 months and didn't want any problems.

I requested they fill in the account number as I of course did not have it at the time the form was signed. A few weeks later the form was returned by post from another department, complaining that I had not filled in the account number!

The second account was opened in Tunbridge Wells in late May. This time the banking advisor said they no longer used paper forms and the declaration was now done on the computer. Also that I would receive a letter by post confirming the registration.

I then asked if she could do the registration for the other account, I had the details with me. She did this one too. Both letters confirming registration were in my mail when I returned home a few weeks later.

xylophone

Strange.
http://www.hmrc.gov.uk/tdsi/tdsi-guidance-for-bs-3.htm#336

greenface

I signed for my grandchild at halifax last feb/march. thanks for the link . very strange

joyh

Thanks for the suggestions. We're looking into the recommendations.

Joy