Premium Bond Syndicate Agreement

Sampong

andybrock wrote: »

That's why a suitable agreement is necessary.;)

You seem to have missed the point of my post;)

HappyMJ

andybrock wrote: »

That's why a suitable agreement is necessary.;)

No agreement will be legally binding. It's not a good idea...the posters here are trying to persuade you not to do it.

Just stay out of it and if you must gamble with your own money then use your own money in your own name and leave everyone else out of it.

Do you realize the odds of winning are 1 in 45,000,000,000 (45 billion) .. There are only 12 draws per year. It's a poor investment.

andybrock

HappyMJ wrote: »

No agreement will be legally binding. It's not a good idea...the posters here are trying to persuade you not to do it.

Just stay out of it and if you must gamble with your own money then use your own money in your own name and leave everyone else out of it.

Do you realize the odds of winning are 1 in 45,000,000,000 (45 billion) .. There are only 12 draws per year. It's a poor investment.

Oh dear, you seem to have totally misunderstood the original question


Thanks for the advice but there are lots of groups doing what I have mentioned in the original post.
Its not a gamble as you state-all persons have agreed.
I'm asking for advice about an agreement-not about the benefits of forming a syndicate.
Please expand on the agreement not being legally binding-interesting, would like to know more.
GM has given the most sensible answer-appreciate that.:cool:

mf78

Just a question, but how will you check whether the premium bonds have won? Wont you be completely at the mercy of whoever registers and buys them? Or will that be you?

k12479

andybrock wrote: »

Please expand on the agreement not being legally binding-interesting, would like to know more.

I'm no legal type, but there would be one piece of paper saying "this money belongs to all these people" and another piece of paper saying "this money belongs to this person", as according to the NS&I T&C's - Individuals of at least 16 years of age may, for their own benefit, purchase and hold Bonds in their own name. Could get complicated, should anything go wrong.

andybrock

Anyone who is part of the syndicate can check the numbers online.
You have a common number to use which is distributed to each member.

kidmugsy

The only case I can see for a Premium Bond syndicate is if the individuals concerned can't raise the £100 minimum separately.

andybrock

k12479 wrote: »

I'm no legal type, but there would be one piece of paper saying "this money belongs to all these people" and another piece of paper saying "this money belongs to this person", as according to the NS&I T&C's - Individuals of at least 16 years of age may, for their own benefit, purchase and hold Bonds in their own name. Could get complicated, should anything go wrong.

Surely just one agreement with something like:

The Members hereby agree to contribute money to a collective fund ("The Fund") which will be used to purchase premium bonds, and to share the proceeds or winnings from any such draws in accordance with the terms of this agreement.

andybrock

Thanks for all the advice on this but I'm not looking to justify forming a syndicate.
I have encountered people carrying out this quite often and just seeking advice on wording an agreement.

When I have finalised it, I will post so it may assist others in the future.

vectistim

Irrespective of other syndicates existing, I suggest you check with National Savings.

With Premium Bonds there is a limit to the number that any person can own. In that case syndicate membership should decrease the number any syndicate member can own in their own right, in order for that to work National Savings would presumably need to know what stake each member had in the syndicate.

I would _imagine_ the best approach would be for each member to own their own bonds but then make some undertaking with the rest of the syndicate members to share their winnings.

Looking at some earlier posts you seem to say this would not be possible, although I can't imagine why. What happens if under the single investment syndicate the person in whose name all the bonds are held goes bankrupt, gets divorced or has some other financial calamity?