Children saving for initial deposit

DandelionPatrol

Anagran wrote: »

Thanks for that. Your un-informed, judgemental and frankly rude opinions really add to the thread.

Well, inform us.

Either the money belongs to the kids, in which case, I would have expected at least a token effort from you to tell us that you would pay it back.

Or it belongs to you, in which case why not keep it in your name? Apart from the tax advantages, that is. In which case, you are not paying your dues at the expense of us all and you deserve a gentle little prod.

Your ill-grace here, I am afraid makes me suspect the worst, that it is really your money and you are just using the kids' names for tax reasons

Andypandyboy

We have done this over the years. We have always saved by DD every month into the kids accounts. It is just a separate " pot" that we have then withdrawn as needed for holidays for the kids, deposits on houses. cars etc. Usually big purchases.

The kids have never had the pass books, we have just given them the money or used it for their benefit as required.

They are adults now and it still goes in every month and we use it for gifts or to pay for their holidays if they choose to come with us. Whatever money remains when we have gone willl just become theirs as it is in their names.

cte1111

Andypandyboy wrote: »

We have done this over the years. We have always saved by DD every month into the kids accounts. It is just a separate " pot" that we have then withdrawn as needed for holidays for the kids, deposits on houses. cars etc. Usually big purchases.

The kids have never had the pass books, we have just given them the money or used it for their benefit as required.

They are adults now and it still goes in every month and we use it for gifts or to pay for their holidays if they choose to come with us. Whatever money remains when we have gone willl just become theirs as it is in their names.

You really can't do this now that they are adults! If you want to keep a separate fund for 'presents and holidays for the kids' then you need to open a savings account in your name. If the money is in their name, then you are committing fraud by accessing it like this.

Andypandyboy

cte1111 wrote: »

You really can't do this now that they are adults! If you want to keep a separate fund for 'presents and holidays for the kids' then you need to open a savings account in your name. If the money is in their name, then you are committing fraud by accessing it like this.

The accounts are all joint. The building society is fully aware of their ages and if I remember correctly at 16 we had to sign a form about the arrangement. So I am certainly not committing fraud!

Anagran

DandelionPatrol wrote: »

Well, inform us.

Either the money belongs to the kids, in which case, I would have expected at least a token effort from you to tell us that you would pay it back.

Or it belongs to you, in which case why not keep it in your name? Apart from the tax advantages, that is. In which case, you are not paying your dues at the expense of us all and you deserve a gentle little prod.

Your ill-grace here, I am afraid makes me suspect the worst, that it is really your money and you are just using the kids' names for tax reasons

If you read my post you will notice I clearly stated that the money was my children's which had been gifted to them by others and not by us for their birthdays etc. I did not mention whether or not I plan on paying them back as I did not feel this was relevant to the OP's query. I do plan on paying them back to set the record straight.

This is not a tax dodge. It is their money and I do not pay tax myself so there is no advantage anyway.

Also I am not teaching my children about breaking promises etc. they are far too young to understand.

By un-informed I was refering to the poster who stated this situation was buying a house you could not afford. That poster is not informed on our financial situation or the circumstances of the house purchase and as such I felt it was rude to say we were "stealing" from our children and could not afford to buy our home, and I stand by that.

marsman802

It's not a tax dodge at all. It's just being clever.
Sod off with the moral argument - everyone is entitled to ISA allowance. If you don't do it then fine but don't tell people off for being money-smart.

csgohan4

marsman802 wrote: »

It's not a tax dodge at all. It's just being clever.
Sod off with the moral argument - everyone is entitled to ISA allowance. If you don't do it then fine but don't tell people off for being money-smart.

There is a difference to saving up in an account which you cant take money out of for savings purposes for Tax and putting in a free withdrawing account as and when in your CHILDS name AND withdrawing when you like.

Johnnytwostep

As long as you can justify taking money given by other people to your children to use on yourself then that's all good.

marsman802

I'm pretty sure we're not all going to agree on this one.

The argument could of course be that by investing in a new home you are trying to make more money to pass on later in life.

Personally my daughter has a pension (she's just turned 1 yr old) and a stocks and shares JISA (which I can never withdraw from) so hopefully I'm being transparent on this one.

kingstreet

FWIW we have a JISA for our daughter which is untouchable until she is 18 and we have a separate savings account we/she can dip into when required for something she needs.

There isn't a great deal of money in the savings account, but as its instant access it does double as the emergency fund for the family with anything used by us repaid as soon as possible.