Real-life MMD: Should I use my 5-year-old's £100k Prem Bond win to pay debts?

tgroom57

I think if you were struggling and burdened with debt - you would have cashed in the Premium Bonds before now. That you haven't done so says to me that your present debt is no burden.

Golfpro_2

Appreciate your view, that the blunt legality of " its not their money etc etc". however they are not court appointed trustees they are co signature adults of a minor on a kiddies account. Incidentally If they were court appointed trustees by way office of public guardian they would be expected to look at the problem as a whole. The courts on application in writing would weigh up if the house of said child was about to be repossessed (for instance) and on the balance of what is right for the chilld, may very well agree that a withdrawal from said winnings is appropriate in the best interests of the child to fend off a comlete family upheaval.

Its all about what you are doing with fund, its necessity and fairness. For instance, Will, as a result of the use of the fund, this child benefit in a way appropriate and in a way that balances appropriately against the size fund on which is being drawn against.

Plus from a personal standpoint you cant alienate one child against the rest. Siblings do not work well together like that. You dont hand over the family busness to one child, you dont buy more presents at christmas for one child and you dont enter into an investment scheme without spreading the risk and spreading the reward. Equality amongst kids is paramount.

jgriggle

There's some information missing here:

How much is the debt?

Do the children know that they've won money?

Do they know how much?

Personally I wouldn't tell the children about the win, pay off the debts, and then split the remainder between the three of them.

Then make sure that you make a special effort to do things you wouldn't normally be able to do if you were still making monthly debt payments. Things like days out, weekends at the seaside etc.

They will only get one childhood. Once it's gone it's gone. Give them happy memories that they wouldn't otherwise have had.

Then split the rest equally between them. There's no way that one child should get all the money while the others get none just because of a 'technicality'.

We've got two children, we opened a savings account in our eldest's name but the money is going to be split between them.

beanymagoo

in my opinion I think that your kids will have a better childhood if you can start fresh by paying off your debts and then maybe splitting up whats left and dividing it by the three children. Then as you are no longer having debts to pay you could save up that money and take them on a fab holiday next year. I think that it would be really unfair if the 5 year old got all the money and I think that your other 2 children could resent you for it when they grow up. Dont do anything that could give an excuse to have a fall out in the future! Life is too short. Oh and by the way....CONGRATULATIONS on such a fab win for the family. Its great to hear people actually win these prizes.:j

Nicky101

i would say money like that is too much for a child anyway.
if it was me i would pay the debt off off for the best of the family and put the rest in savings until she was 18.

if this was a legal contract the parents would have the authority until their child was that age.

lutzi1

This should all have been clearly thought about before you bought the premium bonds. IMO you cannot give one of your children such a major advantage over the other two, you are just building up resentments and problems for the future which could split your family apart. Is that what you want? Split it between the three of them, together with any future wins.

As for paying off your own debts, don't even go there unless you are facing a family-threatening bankruptcy. If you are, make sure you repay every penny. As somebody else has said, you have a legal and moral responsibility to act in their best interests, not your own. The money could well be used to pay the costs of studying later, or house deposits, which would indirectly help you out a lot.

Rejoice in your good fortune and do the right thing.

terryya

I can't believe that anyone would think that just one child should get the money.

I don't think I'd be able to look my other daughter in the eyes ever again if her sister was £100k better off at 18, and to be honest I don't think the one with the money would either!

To be honest, I'm not bothered what you do with the money but if there is some left it has to be split between all three.

Sorcha_2

Really? You're asking opinions? Don't you know your own family well enough to decide what to do? Only one of my children has one of those stupid children's accounts the government set up. IF it flourishes (not likely) they'll be splitting the money. That's it, foot down. They love each other enough that they're going to feel bad getting a windfall when the others have nothing anyway. The child who owns the account already knows this is going to happen, its a fact I'll be reminding her of.

Don't split it then apologise to your child, they should grow up with the fact that their number came up and the money was used to benefit everyone because that absolutely IS the "moral" thing to do. At least, it would be in our family. Everyone shares good fortune, you don't hog it. Just make sure that if any other numbers come up you do the same thing, til they're 21 say, or 18, or whenever you chose to hand it to them to administer themselves.

cats2012

I don't know how I feel on the debt part, but there is absolutely no way I would keep it just for one child. A couple of grand from an accident or something maybe, but £100k??? If I'd had that much more money than my sister just on luck, THAT would feel immoral.

louisajoyce

Am so surprised at the amount of people who are saying it is for the kids! So what is living in a debt free family with no mortgage if not for the kids! I save £100 for my children every month, but the money is not theirs until I give it to them! If there was ever a need to use it I would and I won't be doleing it out for any old reason when the time comes either, it's for uni/car/house! Of course you should keep the money and put a sensible, equal amount in accounts for each of your three children.