Can I open an account in trust for an adult child?

Goldqueen

I am looking to open a bank or building society account for my 18 year old but to be held in trust or administered by me as she is very young for her age and I deem her too vulnerable to manage the money wisely. She has just had a baby and her partner has a criminal record and I need to make sure the money is used for essentials for her and the baby and not into his pocket! Does anyone know whether this is possible and if so, which banks etc would be able to set this up? I am proposing to give her £4000 - also can this be gifted in trust form without incurring tax?

grumbler

How do you actually see 'managing' the account?
If any transaction requires your 'authorisation' can you not have it in your name and make purchases/payments for her?

Alternatively get a prepaid card for her and transfer small amounts every time she needs money.

xylophone

In effect what you propose is not possible unless you create a formal discretionary trust - for these amounts this would hardly be cost effective.


Why not take on the payment of her rent/electricity/water bills or pay for the monthly shop, arranging for it to be delivered to her?

You might consider a five (or even seven) year bond in her own name for the £4000 in the hope that she will be more sensible with money as she approaches her mid twenties?

http://www.moneysavingexpert.com/savings/fixed-rate-savings

jonesMUFCforever

You could open a joint account whereby both of you to sign for all withdrawals but you will not get any debit cards or internet banking.

Otherwise you need to create a trust which will not be cheap.