Signatory on children's savings

Budget_mum

When my two sons were born my ex mother-in-law made a big fuss about opening savings accounts for them and each year instead of a big birthday pressie she would tell me how she had put money into these accounts. I asked my ex to speak to her as the boys are now old enough to decide what to do with their money (17 & 19). Apparently when we divorced she closed the accounts and put the money back in her own pocket. I'm stunned and disgusted that she could effectively steal from her own grandchildren. :mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:


As these accounts were in my sons names with her as signatory do my boys have any legal right to claim their money back from her ??

opinions4u

It depends.

Trustee account - the money belongs to the child.
In re account - the money belongs to the adult.
Signatory on a child's account - the money belongs to the child.

mrcow

Do you actually know if there ever was an account?

If someone woul do that to thir own grandchildren, I certanly wouldn't put lying past them.

Budget_mum

mrcow wrote: »

Do you actually know if there ever was an account?

If someone woul do that to thir own grandchildren, I certanly wouldn't put lying past them.

Unfortunately I know her VERY well and I'm certain she was paying in money every birthday & Christmas.

xylophone

in re account - the money belongs to the adult

.

No, not necessarily especially in a savings account - can be so in a share type "designated account" see http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/

See http://www.hmrc.gov.uk/tdsi/children.htm
"Trust accounts
The most common type of trust account held for children is a bare trust. Bare trusts can be called by another name, for example re accounts or nominee accounts. An example of a bare trust account is ‘Mrs Smith re Miss Smith’.

If this was a bare trust type account or a child account with adult as signatory then the money definitely belonged to the child absolutely.
Presumably the account will also have benefited from tax relief to which the adult would not have been entitled unless a non-taxpayer herself.