child savings accounts held by grand-parent.

3Moneyaid

  
I opened an account several years ago and have a nominal amount of money  for  a grand-child. It is held in a pass-book account.
The child is eight years old.  I received a letter from the society saying under data protection laws they have to be open about how they collect, store and process data. We therefore may need to tell a child or person with parental responsibility, about the existence of an account opened on the child's behalf.

It says We also will not share any of your personal information with the child or a person with parental responsibility.
 I have not had a letter from them like this before and wonder why they have sent it.
My daughter knows I have this money saved but I feel it is my private business as my daughter over the last couple of years has made disastrous money choices and I do not want the grand-child's money brought to her attention and want to keep this money for grand-child until she possibly reaches 18 years. Can anyone give me some information to help.
Thank-you.

eskbanker

I believe that they're right that if your granddaughter (or your daughter on her behalf) submitted a subject access request to the building society then they'd be obliged to disclose the account's existence, but it's not clear whether that's what they have in mind or if they plan to inform either of them proactively.  Openness cuts both ways though, so in your role as account trustee you could always ask them under what specific circumstances they'd divulge details to child or parent.

Brie

I wonder if it's to do with the fact that there potentially could be tax paid on interest earned.  Obviously a child wouldn't be aware normally of things like that while an adult would be.  And if the tax is substantial that might land back with the person who put the money in the account (aka you).  

There are also a number of things that go along with accounts (apps, debit cards etc) that a child might have but need the permission of their parent to get.  

3Moneyaid

 Thank-you both for your replies. Eskbanker :   Can I just ask you if my daughter submitted a subject access order to the building society then they would be obliged to
disclose the accounts existence.

in the letter to me it says We will not share any of your personal information with the child or a person with parental responsibility so that does not make it clear to me just what information they will share. I am just trying to have some insight before I phone them and speak to them about it.  Also if it is my account then for them to contact my daughter is giving out my personal information to her.

Also Brie : I am retired and it is only a child savings  account there is no tax being paid back to me. There are no apps, debit cards etc, also for this account I was told that the child can start using it once they are 11 years old so as yet unless I say so the child cannot use it., so I am confused.

xylophone

My daughter knows I have this money saved but I feel it is my private business as my daughter over the last couple of years has made disastrous money choices and I do not want the grand-child's money brought to her attention and want to keep this money for grand-child until she possibly reaches 18 years.

If this money is being held in your granddaughter's own name, then she is the beneficial owner of these funds and you are the bare Trustee.

She has the absolute legal right to access and control once she reaches the age of 18 (16 in Scotland).

Because the money is hers, any interest arising on it is likewise hers and taxable as hers.

 However, in view of the fact that she has her own personal allowance and personal savings allowance, unless the sum involved is very substantial indeed, it is unlikely that there is any tax due.

https://www.gov.uk/trusts-taxes/types-of-trust#:~:text=and 'beneficiary'.-,Bare trusts,the name of a trustee.&text=This means the assets set,the beneficiary is old enough.

Brie

I was simply looking at the Barclays website to see if there was anything specific about data sharing but can't see anything.

My other comments are based on this which suggests that your daughter might at some point need to know about the account:

1. If you’re 11 or 12, you’ll need permission from your parent to access the Barclays app. They can do this when you first open your account, or by visiting a branch any time.
   

2. To get a Barclays Visa debit card, you’ll need your parent’s permission.
   

3. You need to be at least 13 years old to be able to use Apple Pay.
   

4. Interest is paid gross. Children are entitled to income tax allowances and the Personal Savings Allowance in the same way as adults. If a child is liable to pay tax, any tax due on interest earned will need to be paid to the appropriate tax authority. For more information, see the HMRC website.
   

   If a parent gifts money to a child that produces more than £100 gross interest in a tax year, the income is normally taxed as belonging to the adult.

They may of course agree that you are the "parent" for the purposes of permission.

wmb194

Different providers have different terms. LBG Group (Lloyds, Halifax, etc.) has a similar term but it says it will only inform them when they're close to16, the age it gives them access their account(s). IIRC  Barclays has no such term and says that it's up to the trustee to transfer the account when they're 18 (16 in Scotland).

eskbanker

3Moneyaid said:

Eskbanker :   Can I just ask you if my daughter submitted a subject access order to the building society then they would be obliged to
disclose the accounts existence.

in the letter to me it says We will not share any of your personal information with the child or a person with parental responsibility so that does not make it clear to me just what information they will share. I am just trying to have some insight before I phone them and speak to them about it.  Also if it is my account then for them to contact my daughter is giving out my personal information to her.

It isn't your account - if it was an account in your sole name then they wouldn't know about anyone else being associated with the account.  The fact that they do know this presumably signifies that it's an account in your granddaughter's name, with you named as trustee, but as above it's her money under this arrangement.

I don't know specifically how they'd respond to SARs in this scenario but would have thought that the beneficial owner would be entitled to know at least the name of the trustee, although any organisation holding personal data has to balance the rights of multiple data subjects....

In terms of your concern about visibility of the money, even if your daughter becomes aware of it, that doesn't give her any rights to access it, so your role as trustee means you're still in control of it until she reaches 16/18.