16th birthday this week.

McKneff

Can I just point out that if the money is in your child's name, then the GPs, if they take it out are stealing what doesn't belong to them. Once it is in your sons named account, it ceases to become theirs.

letthemeatcake

Thank you McKneff. I'm sure the money is in my Son's name but under GP's control at this point.

I'm thinking that they need to access the money to pay this debt as they have already said as much. I just don't know how they intend to do so.

xylophone

If the account was in your child's sole name then it is his money.
And if it is your son's sole name, (and assuming that he was eligible to receive gross interest), you would have been asked to sign an R85 so that the account could be registered for tax free interest?

If it is in your child's sole name and the grandparents are not recorded as Trustees, then they have no right to access the account?

And if the account is in the child's sole name and an R85 has been registered on it, then he is likely to have a letter from the building society explaining that an R85 for a child's account will allow interest to be paid without tax taken off only until 5th April following his or her 16th birthday.

The child can then register R85 on his own behalf.

According to HMRC, if an account is not held in the child's own name,
" for example it is held in the name of a parent or grandparent, it must be transferred into the child's own name in time for the first interest payment in the tax year following his or her 16th birthday".

See http://uk.virginmoney.com/virgin/savings/learn/childrens-accounts/

It is possible to continue to hold an account in bare trust (except in Scotland) until the child is 18 (or beyond, with the child's consent) but the R85 must be rescinded and the interest paid net.

Any overpaid interest can be reclaimed on behalf of the child on R40 or by the child himself after he has turned 18.

If the grandparents hold the account as Trustees for your son then the money is still beneficially your son's money and the grandparents should not be using the money as though it were their own.

If this is money in an account in the name of the grandparents only, then the money is their money and they can do as they wish with it.

letthemeatcake

Thank you for this useful information xylophone. From the snippets of info I have had over the years it seems to be in his name but with GP as joint holder so he cannot access the money without her consent.
GP has mentioned that she pays tax on this account.

xylophone

A joint account? With an infant? (You said that this account was opened when your child was born).

I simply do not understand what is going on here.

Have a look at this http://www.lloydsbank.com/savings/young-saver.asp by way of example.

There is no doubt here that the money belongs to the child.

If this is the type of set up that the Grandparents have, then tax was not payable unless your child earned enough to pay tax - an R85 should have been registered.

I think that you need to see the terms and conditions of the account.

letthemeatcake

The problem is they won't talk about the account which is why I am waiting for his 16th birthday this week. I only know that the account was set up on birth and I remember seeing the paperwork. One parent had to sign but I do not know if it was an R85 and GP says she pays tax on the account.

I was told by the GP's several years ago that he cannot access the money without GP consent. She has to sign too but until what age I do not know.

Archi_Bald

Looks you have a communication problem with the GPs, letthemeatcake. You probably didn't need me to figure that out, but there might still be some value to me saying that I imagine your son would feel so much better if that problem didn't exist, and it seems you need to be reminded of that.

Most people probably won't judge their happiness by how much money they could swing from their grand parents. Most young people would just expect, and correctly so, that their parents and their grandparents are there to support them regardless. Mum or Dad trying to squeeze out some money from the Grandparents may not be immediately obvious to the youngsters but it will eventually be, and the youngsters aren't likely to give credit to either of the fighting fractions.

Mind you, some people / their parents went to war over their inheritance. I can't think of any war that was worth the sacrifices it demanded. Think about your son, not yourself. Genuinely.

letthemeatcake

Archi_Bald wrote: »

Looks you have a communication problem with the GPs, letthemeatcake. You probably didn't need me to figure that out, but there might still be some value to me saying that I imagine your son would feel so much better if that problem didn't exist, and it seems you need to be reminded of that.

Most people probably won't judge their happiness by how much money they could swing from their grand parents. Most young people would just expect, and correctly so, that their parents and their grandparents are there to support them regardless. Mum or Dad trying to squeeze out some money from the Grandparents may not be immediately obvious to the youngsters but it will eventually be, and the youngsters aren't likely to give credit to either of the fighting fractions.

Mind you, some people / their parents went to war over their inheritance. I can't think of any war that was worth the sacrifices it demanded. Think about your son, not yourself. Genuinely.

Its not about the money and my Son knows nothing about this account. Nothing has been said in front of him. There is no argueing going on between anyone only my posts written on here.

Consumerist

The matter of whether any such account ever existed in your son's name is only hearsay at the moment. For all you know, there never was any account.

If you are concerned about this then explain to Social Services that there may be an account in your son's name but you don't know whether it exists and if it does, how much may be in the account.

If you can't dismiss this phantom account then I am sure Social Services will without a second thought. You and your son have nothing to worry about so please don't.

Sleep well.

Archi_Bald

letthemeatcake wrote: »

Its not about the money

Most of what you have posted so far was about nothing but the money

letthemeatcake wrote: »

and my Son knows nothing about this account.

I am speculating now but I think you shouldn't be surprised if your son would see through some or all of it, now or at some stage in the future.