Savings account for adult child

cazza1968

I have searched but can't seem to find the answer to my question. Husband wants to put some money away for our daughter in a savings account that she can access when she needs a deposit for a mortgage. He doesn't want her to know about it tho! He thinks it might discourage her to seriously save. She is currently 19. Does anyone know if you can do this, maybe some sort of trust in her name that we can control and add to it?
Or is it just easier to open another account in our name and just give it to her when she needs it- approx £30,000
Thanks

xylophone

It would be possible to set up a discretionary trust but would require professional advice - the tax treatment and administration would seem more than would be warranted in the circumstances.

I do not see how making the gift to your daughter would discourage her saving, especially for a house deposit - £30,000 is a generous gift but still modest in house deposit terms (depending of course on what and where she buys).

Has she opened a HTB ISA?

The Lifetime ISA is on its way.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508117/Lifetime_ISA_explained.pdf

Would it not be better to have a serious discussion with your daughter about financial matters?

cazza1968

Thanks for that. He's adamant about not telling her about the money. So I think it's easier to just open a separate account and then it's there when she needs it...

xylophone

You can't open an account in the name of your adult daughter.

You may keep the cash in your name/your husband's name/a joint account.

markwilkinson

Put the money aside in an account in your own names, but earmarked for the intended use. Encourage her to open a HTB ISA. That's what I would do.

[Deleted User]

If you want to encourage saving, rather than discourage 'not saving' - why not offer to match her deposit savings?

Still keep your money invested/saved somewhere, but also motivate her to increase the pot available. As the person above said, get her to open a help-to-buy ISA, and pledge that you'll match it. Don't tell her that you'll actually give her the £30k whatever - just make sure she's trying