Is this legal?

chelseablue

The high interest current accounts require you to pay in a certain amount and have direct debits from them I think?
I only have 2 direct debits so could only open 1 of them

jimjames

chelseablue wrote: »

The high interest current accounts require you to pay in a certain amount and have direct debits from them I think?
I only have 2 direct debits so could only open 1 of them

Kids accounts require the money to be theirs, each account has rules.

Read the terms and the link above.

How much do you have?

chelseablue

Nearly £40,000

Vortigern

Would a bank be required to submit some sort of report to HMRC on an account with £40,000 deposited? (Whether a child's account or not)

chelseablue

The max you can have in my sons account is £20,000

jamesd

chelseablue wrote: »

Thousands of people must operate savings accounts for their children, I suppose that when you go in to withdraw money from it, the bank must presume that the child is going to buy something with the money?

Yes, or they would file a suspicious activity report with the National Crime Agency, which would then decide who to pass it on to so that it could be investigated properly.

It is not necessary that the child buy something with it. The requirement of a trust is that the money is used for the benefit of the child. That could be something like clothing, housing or anything else to meet the needs of the child. Housing-scale items tend not to be relevant for savings accounts, that's more something for inherited money or divorce settlements in large amounts.

chelseablue

I will be using my savings to put down a deposit on a house.
So I think I will be using my money to benefit him.

xylophone

Direct Debits are easily arranged. https://forums.moneysavingexpert.com/discussion/comment/67020005#Comment_67020005

Open a Tesco Internet saver and an Instant Access saver.

As for moving money in and out of accounts to satisfy the monthly requirement, you can do this instantly on line with faster payments.

PeacefulWaters

chelseablue wrote: »

I will be using my savings to put down a deposit on a house.
So I think I will be using my money to benefit him.

I doubt that would stand up to scrutiny.

You will, however, "get away" with your plan.

But it won't be legal or moral.

jamesd

chelseablue wrote: »

I will be using my savings to put down a deposit on a house.
So I think I will be using my money to benefit him.

Yes. Do be sure that you correctly register the ownership of his percentage of the property value at the Land Registry and declare it to your mortgage lender when applying for a mortgage. The solicitor handling the purchase for you will do this for you as a normal part of their work, since you're normally required by a solicitor to show proof of the source of the funds for a deposit. That solicitor also has some dual responsibility to the lender and will take care of ensuring that the lender knows about the shared ownership, though don't wait until that stage before telling the mortgage lender.

I assume that at a minimum the mortgage lender will require you as trustee for the money to sign a declaration on behalf of the child that they renounce any entitlement to stay in the property if repossession proceedings against you become necessary. However, you should really ask for more on this in the mortgages section where the more real experts are.