Who owns an "RE" bank account

MadMat

When my sons were born, my mum, set up a "pocket money" bank account for each of them (with Nationwide). her stated intention at the time was to transfer control of the accounts when the boys reached 16 (school leaving age at the time!)

After she died the accounts were taken over by my dad. Last time I saw the statements for the accounts it said "Grandad RE son1&2" on them, and also showed a dismal interest rate of about 0.1%!

My oldest son is now approaching 16, I know mum intended him to have the account at 16, but dad is becoming increasingly disinterested in his grandchildren - and is being somewhat evasive when I ask him about these accounts.

Who actually owns the accounts? Will some sort of automatic transfer occur at some point as happens with JISA accounts?

TIA


Mat

Kim_13

Your dad does unfortunately. To get a better interest rate, they would have to have been set up as Junior accounts. The money isn't safely transferred to the child unless it's a CTF or JISA, though. This article has some useful information: http://www.telegraph.co.uk/finance/personalfinance/investing/11286926/Martin-Lewis-the-eight-questions-Im-always-asked-about-childrens-savings.html .

HappyMJ

MadMat wrote: »

When my sons were born, my mum, set up a "pocket money" bank account for each of them (with Nationwide). her stated intention at the time was to transfer control of the accounts when the boys reached 16 (school leaving age at the time!)

After she died the accounts were taken over by my dad. Last time I saw the statements for the accounts it said "Grandad RE son1&2" on them, and also showed a dismal interest rate of about 0.1%!

My oldest son is now approaching 16, I know mum intended him to have the account at 16, but dad is becoming increasingly disinterested in his grandchildren - and is being somewhat evasive when I ask him about these accounts.

Who actually owns the accounts? Will some sort of automatic transfer occur at some point as happens with JISA accounts?

TIA


Mat

They are your dad's accounts. I'd just forget about them. I wouldn't ask about the accounts any more. Once is enough. If your dad wants to give the funds in them to your children he doesn't need you reminding him again to do that. If he doesn't want to give the money to your children then he doesn't have to.

He may have spent the money is the accounts on living expenses which he is entitled to do which may be the reason he's being evasive.

planteria

i agree with HappyMJ.. i would remind your Dad about your Mom's intentions, clearly, once.. and then forget it.

xylophone

The problem lies in deciding whether these accounts were merely designated accounts or were accounts held in bare trust - in terms of a BS/Bank account the re could cover either scenario while in an Investment Trust type set up, "re" generally indicates a designated account.

It would be better even with BS accounts if the adult was recorded as "Trustee of" but this did not always happen.

If they were merely designated accounts, that is to say, accounts which were beneficially and legally in the ownership of the depositor but he had wanted to separate out the money as funds which he could one day use to make gifts, then the depositor has no obligation at all towards the potential donees.

If on the other hand, the depositor had opened accounts for each child where the child was the beneficial owner of money gifted to him at the time of each deposit, then the depositor is a bare Trustee.

Were these accounts Nationwide Child accounts? Even if not specifically child accounts, were R85s recorded on the accounts showing that the income was that of a child entitled to tax free interest?

MadMat

OK Thanks everyone, but I don't think Dad is likely to keep the money, it's more a case of "can't be bothered" to go to a branch and do the required paperwork

I think they were nationwide child accounts, and think R85s were submitted, but as mum wasn't a taxpayer I can't be 100% sure who was named on the R85s!

Mat