Kids' pension question...

Pincher

Another aspect is, if you get the money back, having given it away, the tax man could consider it a tax dodge.

For example, if you put money into a Junior ISA, so the interest is tax free, and then close the ISA a few years later, then transfer the money back into your own account, it could be considered tax evasion.

If the child's pension had been attracting tax rebate, getting the money back into the parent's name could be problematic. I think you'll be lucky if the HMRC only wants the rebates back.

xylophone

For example, if you put money into a Junior ISA, so the interest is tax free, and then close the ISA a few years later, then transfer the money back into your own account, it could be considered tax evasion.

The money in JISA belongs to the child absolutely - except in the event of terminal illness, it cannot be closed ( only transferred to another JISA) before the child becomes 18.

The child can control ( but not access) the JISA at age 16.

At age 18 only the child can access or control the JISA.

https://www.gov.uk/junior-individual-savings-accounts/if-your-child-is-terminally-ill-or-dies

"5. If your child is terminally ill or dies
The registered contact can take money out of a Junior ISA early if a child’s terminally ill.

‘Terminally ill’ means that the child has a disease or illness that is going to get worse and isn’t expected to live more than 6 months.

How to take money out
Fill in the terminal illness early access form to let HM Revenue & Customs (HMRC) know that:

your child is terminally ill
you want to take money out of their Junior ISA
HMRC will let you know if you can take money out of your child’s Junior ISA.

If your child dies
If your child dies, any money in their Junior ISAs will be paid to whoever inherits their estate.

This is usually one of the child’s parents but could be their husband or wife if they were over 16 and married."



You don’t need to contact HMRC but you’ll need to tell your account provider so they can close your child’s Junior ISAs.

Your account provider may need proof to do this, eg a copy of the death certificate.


I would imagine that the same would apply to a child pension.

jdw2000

xylophone wrote: »

The money in JISA belongs to the child absolutely - except in the event of terminal illness, it cannot be closed ( only transferred to another JISA) before the child becomes 18.

The child can control ( but not access) the JISA at age 16.

At age 18 only the child can access or control the JISA.

https://www.gov.uk/junior-individual-savings-accounts/if-your-child-is-terminally-ill-or-dies

"5. If your child is terminally ill or dies
The registered contact can take money out of a Junior ISA early if a child’s terminally ill.

‘Terminally ill’ means that the child has a disease or illness that is going to get worse and isn’t expected to live more than 6 months.

How to take money out
Fill in the terminal illness early access form to let HM Revenue & Customs (HMRC) know that:

your child is terminally ill
you want to take money out of their Junior ISA
HMRC will let you know if you can take money out of your child’s Junior ISA.

If your child dies
If your child dies, any money in their Junior ISAs will be paid to whoever inherits their estate.

This is usually one of the child’s parents but could be their husband or wife if they were over 16 and married."



You don’t need to contact HMRC but you’ll need to tell your account provider so they can close your child’s Junior ISAs.

Your account provider may need proof to do this, eg a copy of the death certificate.


I would imagine that the same would apply to a child pension.

Yes, it goes without saying that the money would go to the parents. Anything else is insane.

Pincher

jdw2000 wrote: »

Yes, it goes without saying that the money would go to the parents. Anything else is insane.

You are assuming the money always came from the parents, and not some relative, or the child is a movie star who made his/her money. The money is his/hers, and it's not that simple.