Property funds in child accounts

greatcrested

noitsnotme said:

Anybody accessed the Telegraph article yet?  I’d be interested to see Martin Lewis’s take on it.

The font of all wisdom. Not....

noitsnotme

greatcrested said:

noitsnotme said:

Anybody accessed the Telegraph article yet?  I’d be interested to see Martin Lewis’s take on it.

The font of all wisdom. Not....

Neither are the arm chair lawyers that frequent this forum from the dizzy heights of their high horses 🤷‍♂️

At least the article says he has consulted real lawyers on the subject and it appears even they can’t agree!

juliedee4663

SuperCommuter said:

Well, everybody here so far, and I'll add myself to the chorus. Why do you think your daughter's name is on the account?

I understand that, but on what grounds do you believe the money is no longer mine? Ethical, legal, or that i am betraying the spirit of the banks terms of conditions? 

I'm no expert, but I suspect on all three grounds to be honest

xylophone

others say there's nothing in practice to stop it."

Which doesn't make it right.......

SDLT_Geek

The money is the child’s.

homersimpson246

Simple, answer, put the house or at least part of it in your childs name.  I assume you could put their share into trust.

AdrianC

homersimpson246 said:

Simple, answer, put the house or at least part of it in your childs name.  I assume you could put their share into trust.

It's unlikely you'd find a mortgage lender to go near that.

grumiofoundation

AdrianC said:

homersimpson246 said:

Simple, answer, put the house or at least part of it in your childs name.  I assume you could put their share into trust.

It's unlikely you'd find a mortgage lender to go near that.

Think OP said buying in cash (which somewhat negates the self-pitying woe is me I can’t get any interest attitude).

saajan_12

There's 2 options here: 
1) Its the adult's money, parked in a child's account for better interest / tax savings etc. This would breach the bank's T&Cs and law on tax evasion. So if you're not doing that, then 
2) its the child's money, the gift can't be un-done. The money has to be spent in the best interests of the child. A new house / boiler etc will benefit the child, but they don't have to pay for that. Its the parents' responsibility to house the child until maturity using THEIR funds, not the child's. Besides, is it in the child's best interests to pay for 100% of a boiler for a home shared by others (parents, siblings etc)? Or pay for X% of a house with none of in in their name? Even with adult sharers, these costs and equity %s would be split, so when acting on behalf of a child, the trustee has MORE responsibility not less to act in the best interest of the child.

So assuming you're not admitting to and paying the fines for (1) then under (2) the adult could put a % of the property in trust for the child. Should be palatable with the right mortgage lender, so that's not the excuse. 

greatcrested

Nice to see we're in agreement saajan_12.

See 3rd post in the thread!