Using child savings

DBoy1

HappyMJ wrote: »

If the account is in your name you might be able to use it.

That's something that I'm not 100% sure about.
On internet banking, the account name is "Smart Ltd Access (Adult)"
All correspondence, including the annual statements and interest notifications are only addressed to me, with no reference to my son.
However the passbook mentions both of us.

mrginge

I presume that your child has not paid tax on their savings interest.
I also presume that when you 'replace' this money you will also not pay tax on it.

Which begs the question - why doesn't everybody put their savings into their children's names, not pay tax, but then use that money as and when they see fit.

HappyMJ

mrginge wrote: »

I presume that your child has not paid tax on their savings interest.
I also presume that when you 'replace' this money you will also not pay tax on it.

Which begs the question - why doesn't everybody put their savings into their children's names, not pay tax, but then use that money as and when they see fit.

Many people do. The child is allowed to earn just £100 in interest per year from parents funds before the remainder is taxed at the parents rate. Each parent also has a £1,000 personal savings allowance and potentially some more so quite a bit can be earned without any tax to pay.

https://www.gov.uk/savings-for-children

DBoy1

I've just called Nationwide, who have confirmed that the savings account is in my name. I've requested a printed account statement to cover the last 12 months. When it arrives, if it confirms that it's just my account with no reference to my son, then I think I am going to go ahead and use what is needed to cover the shortfall of stamp duty.
I am going to keep the deposit amount separately in our current account. This has been saved up from earnings.
As suggested above, I will set myself a time limit to put it back in (with double the interest that Nationwide would have given).

HiToAll

Andypandyboy wrote: »

If they put the money there how are they stealing?

Thanks, thats OK then.
I must remember that when i give someone some money I can just dip into there account whenever i want to take it back.

HappyMJ

HiToAll wrote: »

Thanks, thats OK then.
I must remember that when i give someone some money I can just dip into there account whenever i want to take it back.

The money is being used to house the child so the use of it is a fair use. If it was used for personal things then yes I wouldn't agree but this is putting a roof over the child's head which is very important.

I'm sure when the child is older and finances allow the OP will release some equity from the property and return the cash so the what would now be an adult child can set up home with a deposit.

They did say that in the first post.

HiToAll

HappyMJ wrote: »

The money is being used to house the child so the use of it is a fair use. If it was used for personal things then yes I wouldn't agree but this is putting a roof over the child's head which is very important.

I agree that putting a roof over a childs head is important, but they can buy a cheaper house that they can afford, still puts a roof over the head.

They could take the money to buy a Range Rover, rather than a ford focus as 'the child will be more comfortable in the back', or lets use it to go to the Caribbean instead of spain as the child will appreciate this more. What is fair use?

I'm sure when the child is older and finances allow the OP will release some equity from the property and return the cash so the what would now be an adult child can set up home with a deposit.

They may do this, they may not, something more pressing to spend the money on 'for the benefit of the child' may come along. I may take some money from someone else with all intention of giving it back. Doesnt make it right.

They did say that in the first post.

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MortgageMamma

HiToAll


You need to give your head a wobble mate, this is the real world and having financial security for your children is much more important than the children themselves having ridiculous amounts of savings. It costs a horrendous amount of money to bring children up - I should know, I have 4. Moving money around is a necessity for some parents to ensure the family remains financially stable - I doubt there a re many parents around who would "steal" money from their children as you are implying. The child probably doesn't even know it has savings anyhow! I get the feeling you are being a deliberate troll and making this parent feel bad for trying to be a decent provider. You are implying this parent would fritter away the money. You have no evidence of that its just a wild assumption you are making purely for the purpose of trying to win an argument which is only happening because you are deliberately provoking the situation.

DBoy1

HiToAll wrote: »

I agree that putting a roof over a childs head is important, but they can buy a cheaper house that they can afford, still puts a roof over the head.

We can afford the house we are looking at, based on monthly income and outgoings... easily.

There are simply no suitable houses in our local area that would allow a deposit that we currently have. I am not going to buy an unsuitable house just for the sake of it, when in 2-3 months we would have the deposit required for the house that we want.
But will it still be there in 2-3 months... that's our dilemma.

HiToAll

MortgageMamma wrote: »

HiToAll


You need to give your head a wobble mate, this is the real world and having financial security for your children is much more important than the children themselves having ridiculous amounts of savings. It costs a horrendous amount of money to bring children up - I should know, I have 4. Moving money around is a necessity for some parents to ensure the family remains financially stable - I doubt there a re many parents around who would "steal" money from their children as you are implying. The child probably doesn't even know it has savings anyhow! I get the feeling you are being a deliberate troll and making this parent feel bad for trying to be a decent provider. You are implying this parent would fritter away the money. You have no evidence of that its just a wild assumption you are making purely for the purpose of trying to win an argument which is only happening because you are deliberately provoking the situation.

I have wobbled my head, and still think the same.
They asked for input, I gave input, if they or you dont like it then not my concern.