Legal advice on kids savings

Racheljaa

Can anyone point me in the direction where to get advice on my children's savings please? I have been saving for my daughter throughout her childhood. Once she turned 18 she blew a lot of her savings, dropped out of school etc. I have more savings for her that she doesn't know about, does anyone know if I have to transfer them now or if I can tie them up in a trust for when she is older? Thanks

Albermarle

It depends how the savings are held. 
If you saved them yourself in your own savings account in your name, you can do what you want with them .The fact that notionally you were saving them for your daughter is not relevant.

If the savings/savings account are in her name, but she does not know about them, then they belong to her. Hiding them from her is probably illegal, although it is more of a family matter really, and what she will do/think of you when/if she finds out.

A trust makes life complicated and probably will not work/not possible.

Racheljaa

Thanks Albermarle, they are in the name of the parent and the child, I'm asking the bank and they don't really know. It's so hard. I want to do the best for her, she is in such a bad place right now. I don't know where to get information from.

Olinda99

Joint accounts usually belong to both named ie either can withdraw the money without restriction (unless set up with needing both 'sign')

What is the account name and bank ?

Racheljaa

It's a Halifax instant saver now. 

wmb194

Racheljaa said:

Thanks Albermarle, they are in the name of the parent and the child, I'm asking the bank and they don't really know. It's so hard. I want to do the best for her, she is in such a bad place right now. I don't know where to get information from.

Do you mean that the parent was/is named as the trustee? If so, it's the child's account, see below. If it's genuinely a joint account then usually the money will be owned 50/50.

https://www.halifax.co.uk/assets/pdf/savings/pdf/savings-account-conditions.pdf

Racheljaa

That is so useful @wmb194 Thank you so much. I read further and it says that I can hold on trust for the child (I think).

Albermarle

Racheljaa said:

That is so useful @wmb194 Thank you so much. I read further and it says that I can hold on trust for the child (I think).

But she is not a child anymore, she is legally an adult .

Racheljaa

The below is ambiguous, and the bank didn't contact us. I wish they had. I don't really understand. They didn't put it in an Everyday saver either.

anonmoose

If she doesn't know about the savings can you just keep it as is for now? Do you get paper statements or online?

If it were me I would just keep it hidden. I don't care if it is technically illegal I am sure she will thank you once she has got back on track. 

I don't see how if you saved the money just not bringing it to her attention at the moment would be a problem. Unless you are worried the bank will contact her direct now she is 18.

I feel for you and hope you manage to protect what is left for her future.

eskbanker

Probably best not to get too sidetracked by what Halifax have or haven't said or done - from a legal perspective the money appears to be your daughter's, so that's the key issue, rather than where it currently happens to be....