childs bank account

lor6126

two years ago i opened an account in my grandsons name into which i pay roughly £15 a month. He is eleven and i plan on giving him his bank card on his seventeenth birthday. Hopefully this will enable him to tskr driving lessons and/or buy his first car.
I am off work ill at the moment and its looking like they are going to pay me off on medical grounds.
if i have to claim benefits in the future, am i safe in assuming this money does not have to be declared ?
It is in my grandsons name, i hold the bank card only to put money in it over the counter at the branch.

lor6126

anyone any idea ?

NYM

Hi,

As your grandson is under 16, I presume someone must be named as a trustee of that account ?
I know nothing about benefits so I'm unable to advise you in that matter, but I believe if you can access the money in you g/sons account if your choose to, then it could be regarded as yours.

lor6126

hi yes, i had to show identification when i opened it for him, though there is only one bank card with his name on it. Im not sure whether i am actually allowed to withdraw money from it (although obviously i could in theory) as i have the card and know the pin.

mum2one

as trustee you can withdraw from the account, I am trustee on my daughters account, and as i am in benefits, I have to declare the money in the account.

for me, she has 3 accounts - pocket money account, 50p account (holiday money) change account (20p, and down) this is so when she is 18 theres a small lump sum for her for driving licence etc.

As your grandson is 11 - he can have his own bank accounts, Abbey and Natwest are two that come to mind, (i'm arranging for my daughter to have an account with each bank), as I know the Natwest she can manage online - all you need is a proof of ID for your grandson (passport, birth certificate) the account would be in his name only.

What I would suggest is open one of these accounts but ask that you can have the details and maybe mum look after the card so that you can still build the fund.

With the Abbey account - there is a choice of 2 cards, the basic cashpoint card or a debit card so he could use it online.

Personally i am opening an account with both, - one my daughter will have access to for her pocket money - do a transfer fortnightly, the other I will get her to put any birthday/christmas money in till she wants something.

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For benefits - the money is classed as yours
Debt purposes - say you were entering a DMP, IVA etc - then as long as your trustee the money is classed as the young persons xx

NYM

So you are the trustee ? If that is the case, the money is still in your control and I suppose it may affect any benefits that you might need to claim.

lor6126

mumtoone. it is rbs.im not sure that im a trustee. There is only one card for the account with his name and the pin was sent to him.
However i will check with the bank tomorrow and if i am i will get him to open an account with one of the ones you have mentioned.
I would hate him to lose at some point, money in his own account because i am no longer working.

lor6126

NYM, to be honest i have no idea if i am a trustee. I filled in an application form some time ago for the account for him. I remember having to show id when i took the completed paperwork in (signed by him). As far as i am aware only he is allowed to draw money out.

NYM

lor6126 wrote: »

NYM, to be honest i have no idea if i am a trustee. I filled in an application form some time ago for the account for him. I remember having to show id when i took the completed paperwork in (signed by him). As far as i am aware only he is allowed to draw money out.

It's entirely possible that the type of account you've opened for him is as mumtoone described. It's some time since I was last working in the finance sector and several Banks have introduced new type accounts for children.

Your best option is to contact the bank and discuss it with them. The identification you had to provide would just have been a security check.

My children have accounts in their names that my husband and I are trustees of. We have total control over their savings until they're 16. They think it's 18....and I've no intention of letting them know otherwise...;)

lor6126

thank you NYM, very sensible. My grandson knows about the account but also thinks he has no access till he leaves school. I also, hope to leave him believing that...

xylophone

My children have accounts in their names that my husband and I are trustees of. We have total control over their savings until they're 16. They think it's 18....and I've no intention of letting them know otherwise..

You have completed R85s? Then be aware that once a child turns 16, these must be rescinded - either the child signs in his own right or if the account remains in bare trust, any overpaid tax must be reclaimed by the parent on R40. See here for example http://uk.virginmoney.com/virgin/savings/learn/childrens-accounts/