Who owns this bank account? (and quick question about ISAs)

cashvoid121

In the case of a bank account that was opened for me in my mother's name when I was a child, and later converted into a normal savings account, but still says "[Mother's Name] RE [My name]" on the statements, who does this bank account legally belong to? (and more to the point, who does the interest paid on it belong to?)

I tried to call the bank today but they would not speak to me about it, and said they would only talk to my mother - but my name is on the account.

EDIT: ISA question already resolved, so just the above one left.


Any answers greatly appreciated.

Neil_Jones

As a general rule if the account was opened on behalf of a child under 18, it becomes the child's at 18. This is the case today but older accounts may be different. Which bank is it?

With regards to the ISA - answer to your quesion is "no". You're paying SA on your income outside of the ISA but not anything in it.

PeacefulWaters

Halifax?

In Re means the account is owned by your mother.

xylophone

In Re means the account is owned by your mother.

This is not quite as clear cut as it may seem.

She may be the legal but not beneficial owner.

It is true that when stocks and shares type savings accounts were set up, there was a choice between "designated" accounts and bare trust accounts.

The "designated" (in re) accounts were beneficially and legally owned by the account holder.

Bare Trust accounts were controlled by the account holder ( the legal owner) but the beneficiary of the trust owned the funds in the account.

However, while it was possible to hold BS/bank accounts as "A&B Trustees of X," it may well have been common practice for the institutions simply to use "in re" even where a 'bare trust" was intended - indeed the HMRC guidance (ancient green format) confused the issue by referring to an account held for a child as a "re" account, even when the parent or other adult was holding the child's own funds.

The OP refers to the account having been "converted to a normal savings account" - to me this indicates an account where the funds may well have belonged to the child despite the "in re".

And see http://www.telegraph.co.uk/finance/personalfinance/savings/2753956/Youre-never-too-young-to-save.html

"Money for very small children is usually held in a trustee account - sometimes know as an in re account - where the parent holds the money on behalf of the child."

Also

https://www.halifax.co.uk/savings/accounts/kids/ under "are Children's
Accounts tax free?

This seems to be an old account- was an R85 ever submitted on behalf of the child?

This may give a clue - on the other hand it may not because if the money in the account was donated to the child by the parent and so belonged beneficially to the child, and the interest was greater than £100 per annum then the parent should not have completed an R85.

And all that said, even if this is a bare trust so that the OP (over 18) can demand access and control, the bank may well not give it without the cooperation of the Trustee account holder.

cashvoid121

The account dates from several decades ago, and even though it has been converted to a more modern product since, the latest statement (long since having reached adulthood) still uses the format "[Parent's name] RE [My name]".

jonesMUFCforever

The account is in HER name - she might well give you access to it one day or not as she chooses but the account is in her name.
Have you asked her about it?

Flobberchops

This kind of question comes up periodically and just for my own satisfaction I'd quite like to know what the answer is.

Just for clarification, which bank is this, what was the account type, are you now over 18, and if so has the account type changed after you turned 18?

Westie983

I would take a stab in the dark this is a children's savings account from the Halifax, where accounts were opened in parents name (s) in Re for Child.

This account can only be translated upon by the parent names and will not transfer to the child on 18, this is only done on closure from the adult.

There are accounts still running for adults with additional needs, or grandparents for Grandchildren where they don't want to give over the funds till a certain age or year.

New accounts are opened in the child's name as is theirs to do what they wish with at the age of 18.

I suggest you get your mother to close the account and give you the funds, if she wishes to do this.

Westie983