We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Inheritance, premium bonds, student loan and maybe more!

Options
Hello...please could someone advise me?
I have recently inherited around £100k.
I have one child who is 18. While I decide how to use the money I would like to put it in premium bonds.
Can I put half into my childs premium bonds too without any tax worries?
He is applying for a student loan and I am concerned it may affect that, although presume that would only be affected by any winnings (which I imagine would count as 'interest' on the bonds).
I'm wondering if I should seek financial advice for a longer term overview, though am worried it may be expensive.
Thank you

Comments

  • eskbanker
    eskbanker Posts: 37,065 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Your 18 year old son is now an adult and as such you can't simply buy PBs in his name anymore, although you can give or loan him the money to buy them, but they'd count as his assets, which would need to be declared as such where applicable (e.g. means-tested benefits, but perhaps not student loans).
  • El_Torro
    El_Torro Posts: 1,851 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    As I understand it the means tested Student Loan is dependent on how much his parents earn (ie you). I don't think it's related to how many savings the student (or his parents) has. I am happy to be corrected on this point if I'm wrong.

    The bigger issue as I see it is that he is an adult, so you will be effectively giving him £50k to put in Premium Bonds in his own name. Are you sure he won't just spend the money rather than save it?
  • If you're not definitely giving your child £50k, putting it in their name might look dodgy.
    Another good place to park cash temporarily is NS&I Income Bonds, which have a much higher maximum balance of £1m. So you could put £50k in Premium Bonds and the rest in Income Bonds, all in your own name.
  • Socajam
    Socajam Posts: 1,238 Forumite
    1,000 Posts Second Anniversary Name Dropper
    I second 2unlimited91.
    There is no way I would give or put 50K into a child's name.
    Helping him with university is another thing, but once that money is in his name, it belongs to him and you are toast.
  • zagfles
    zagfles Posts: 21,424 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    edited 28 June 2020 at 7:48PM
    El_Torro said:
    As I understand it the means tested Student Loan is dependent on how much his parents earn (ie you). I don't think it's related to how many savings the student (or his parents) has. I am happy to be corrected on this point if I'm wrong.

    The bigger issue as I see it is that he is an adult, so you will be effectively giving him £50k to put in Premium Bonds in his own name. Are you sure he won't just spend the money rather than save it?
    Taxable interest and other taxable "unearned" income of the student will count towards the means test, however PB prizes are not taxable so AIUI they won't count at all.

Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.