matured savings policy

hrated

Hi all
I am 3 years into an iva, last week I receaved a cheque for £5,000
from a matured savings policy that I forgot all about.
the policy was taken out about 12-13 years ago for my daughter when she reached 16.
when I took the policy out the guy advised it should be in my name as no one knows how their child would turn out when the reached 16, and I would have control over the money if it was in my name.
I did this so now I have a cheque for the money but it is for my daughter but it is in my name.
how do I let her have it without the iva people thinking I am trying to keep it for my self.
She should not have to suffer for my problems.
any advice

warwicktiger

A cynical view, you paid into it but cannot afford to pay what you owe, so why should you be able to give money to your family?

I would be really peeved if I was a creditor accepting less than you owe me !

Annisele

Unfortunately you made the choice about whether the money belonged to you or your daughter 12-13 years ago.

If you'd put the money in trust for your daughter, then it would have been hers. But since you didn't, it's yours - and so now you must declare it to your IVA supervisor.

longtermplanner

I am afraid I agree with the others. The policy is in your name so legally it is your money not your daughters.

Foxy-Stoat_3

Does your IP see your bank statements at the annual review or do you have another bank account you can pay it into?

How are they going to find out?

UpToMyNeckInIt

hrated,

Sounds like it is technically your money. You should therefore declare it to your IVA supervisor is the honest answer.

I appreciate why you set the plan up though etc. I have done something similar for my son, but transferred the account into my Wife's name only before entering the IVA.

Foxy's suggstion is a little devious, but tempting - I would consider it: Pay it into a 'secret' bank account, then doing a BACS/faster payment transfer into your daughter's account.

Even if it means opening a basic account, doing the above, and then closing it again.

My IVA firm ask for the last 6 Months bank statements at review time (some only ask for 3), so you have to be mindful of things like that.

The flip side of the arguement I suppose is: Is it worth risking some sort of fraud charges over £5K?

Anyone know for sure if there is there a way an IVA company can 'find out' about un-declared accounts etc? (I'm sure there is: They can probably access your credit files if they smelt a rat).

Good luck, whatever you decide to do.

Foxy-Stoat_3

The op wouldn't be prosecuted for fraud...he may of broken one of the terms in his contract.

Read the wording that talks about windfalls and if you consider a savings account for your daughter for unforeseen problems a windfall then do what you feel you should.

If you owe say £50,000 at the start of the IVA and you had £5,000 in a savings account not a current account and didn't list that as a cash asset then there's probably no way the IP would find out.

Up to you.

UpToMyNeckInIt

Failure to disclose a windfall is a criminal offence (as well as risking IVA failure), as confirmed by an IP and a representative from another IVA company here:

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=56431

There are also several other posts on that forum citing similar tragic examples.

Also: Google 'Andy Barker deal or no deal jail'.

Granted, this bloke was a complete idiot, and the amount involved was considerably larger (£35K), but the same law applies to all forms of insolvency.

Just how far the 'law' would go for £5K is debatable. It is a theoretical risk however, that the OP will have to consider in their decision on this matter.

Foxy-Stoat_3

Ok, so to be classed as a windfall then it should be unexpected such as a lottery win, inheritance etc. As the OP knowingly saved the money for his daughter then it may not be conceived as a windfall. I would certainly argue the case if it was me.

If you were asked at the start to list all of your assets and didn't include cash/savings in that then this is the only thing you would of done wrong SHOULD the IP find out.

UpToMyNeckInIt

...a windfall does not have to be 'unexpected', just money that you are entitled to.

I take on board your point though about if this money is merely undeclared 'savings' - that as you elude to, is a different matter. There is of course nothing wrong with accumulating savings within the IVA, but the OP's IP might have a bone to pick over failing to declare anything significant pre-IVA.

Speaking from experience, I am surprised that this all went un-noticed whilst the IVA was still being proposed (my company went through EVERY account in forensic detail, and if I was paying into some sort of long-term investment account, this would have been picked up).

That leads me on to my next point: I suspect by the OP's term 'matured savings', that this was some sort of mini endowment / unit trust / investment / life insurance type policy, rather than a traditional savings bank/BS account. In which case, it would indeed be classed as a windfall, or an 'after acquired asset' (a bit like PPI).

Either way, it should technically be paid over, unless it was formally be in held 'in trust', for the intended beneficiary (ie: the daughter), and documented in the policy accordingly.

Foxy-Stoat_3

If it were me this area is grey enough to roll the dice.....luckily it isn't me !!!

Although I had a credit card with a zero balance at the start of the IVA which I didn't cancel and forgot about it. I was using it for fuel and food 6 months after the IVA started and it was not picked up during the whole 5 years....I guess it will be down to how thorough the IP is at annual review and completion.

Good luck OP!