withdrawing money from childrens savings

colsten

Eco_Miser wrote: »

Might the children wish to use some of the trust funds to purchase a share of a house in which to live?

( don't think children can buy houses, or shares in houses. However, children might well have a say in whether they want to use their savings for a new bed, carpet, wardrobe, wallpaper for their room etc etc etc

PeacefulWaters wrote: »

2. If the status of the account is that of a bare trust (which it probably is) then the funds still belong to the child and cannot legally be used to buy the parent a property.

If it was a bare trust it would need to say so in the T&Cs.

atush

Would it be in the children's interest to be homeless?

Have you instituted a plan to repay the money (ie do you have the spare income to do so?). With interest? That could be in their interest.

Have you approached family for a loan?

N1AK

atush wrote: »

Would it be in the children's interest to be homeless?

Do you have any reason to believe that the only two options are 1) Become homeless or 2) Use their money to get that mortgage on that property?

As nice as pithy one liners are, they aren't good advice. If the money is in the children's name then I would strongly suggest getting legal advice from an expert before doing anything.

amylyn

Managed to withdraw 25% from each child's account. No questions asked, they only said cheques had to be made out to each child as it had to be for their benefit. Not as complicated as I was told on phone yesterday. Thanks for advice and comments.

colsten

What are you going to do with the cheques then? Sounds to me that you are no further as you can't pay them into your account.

xylophone

You will need to pay each cheque into each child's own account?

How is the money to be withdrawn? Are these accounts in each child's own name? Will £2000 have to be withdrawn in cash from each account so that you can pay £6000 into your account?

If so, is the 13 year old's account in his own name without you as trustee?

And have you had regard to the £100 rule as you have provided the money for your children?

Eco_Miser

colsten wrote: »

( don't think children can buy houses, or shares in houses.

The children can't, but I'm pretty sure a trust for their benefit can. From the HMRC page linked above, a parental trust can certainly own property and buildings.

atush

N1AK wrote: »

Do you have any reason to believe that the only two options are 1) Become homeless or 2) Use their money to get that mortgage on that property?

As nice as pithy one liners are, they aren't good advice. If the money is in the children's name then I would strongly suggest getting legal advice from an expert before doing anything.

It may very well be the only option. I don't know if any deposit has been paid (such as on an auction property') which would be forfeit of they did not go ahead with the sale? Or if other fees would be lost if the sale didn't go ahead (such as mtg feels, valuations etc).

I dont know if they gave notice to their landlord- do you?

Your advice is lacking here in how to proceed.