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Signatory on children's savings

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 ??

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    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
    mrcow Posts: 15,170 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    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.
    "One day I realised that when you are lying in your grave, it's no good saying, "I was too shy, too frightened."
    Because by then you've blown your chances. That's it."
  • Budget_mum
    Budget_mum Posts: 96 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    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
    xylophone Posts: 45,850 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.
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