Kids savings

angie85

Hi - I may have just done something rather silly. I opened a P.Bonds account for my daughter when she was born (2016) and have deposited any money that's been gifted to her from family members and some from me too. I was worried that I'd lose that money before filing for bankruptcy so I transferred the balance into my current account with the intention of sending it to my husband (or mum if it was better?) straight away so that the funds could be safe. The PB account was in my name as she was under 16. Anyway, my husband is worried that this will look like I've committed fraud transferring funds ahead of me declaring bankruptcy. Does anyone have any advice? I really want to protect what is rightfully hers. Thanks

Minkym00

If both accounts are in your name then you’ve not tried to hide your assets, you’ve just moved money around. I would just explain what you have done to the OR upfront. Have you actually gone bankrupt yet?

maxmycardagain

The sins of the father (mother) shall not visit upon the children

(however this may not apply to the OR)

Mouse007

The funds held in the P.Bond account were not yours and your name only appeared on the account as a trustee. You have control of, but no right to benefit from (spend), the money.

Accordingly you did not need to panic about this account, the OR would not be allowed to take monies which are not yours.

Neither have you made the funds yours by transferring them to your account, the money still belongs to your daughter and you are holding it for her on a constructive trust. You are free to return the funds to either her P.Bond account on into another account in her name (with you as signatory).

You may however have to explain this to the OR, but be clear you are/were only holding the funds on trust. Whatever you do, do not spend the money on yourself.

TheGardener

Although many banks are now more tolerant of BR's - it used to be the case that child savings accounts with the BR as signatory were usually closed by the bank (this happened to me but it was over 5 years ago). Hopefully things have changed but it's something to be aware of. Check the T&C's of the account maybe?