Using Adult Savings Account for Child's Savings

hewhohuntselves

artyboy said:

hewhohuntselves said:

wmb194 said:

hewhohuntselves said:

wmb194 said:

MrsLe-Page said:

Hi all.

Currently, the fixed savings rates for adult savings are a little bit better than any current kids savings. I have an amount of money in a 123 mini account (2%), which I am drip-feeding into the First Direct (adult) savings account (7%) at £300 a month. The FD account is obvs not a children's savings account and that got me thinking whether I am allowed to do this? My daughter is only 4, so we'll be opening many more savings account in her lifetime (we save £100 a month (into another account) for her so she might be able to put a deposit down on a house one day!). I'm quite savvy with moving money around to the accounts with the highest interests, but they won't necessarily be labelled as 'children's accounts'. Is this OK to do? 

Currently, £100 from our monthly income goes into the Halifax monthly saver (which will be 5.5% for me come June), then in June 2024 I will move that cash somewhere else. £300 a month from the 123 mini savings account also goes into the FD adult account, so after the 7% fix finishes, I will need to look around again too.

Thanks.

The money that's already in accounts where she is the beneficial owner is her money: you transferring it to your own account is stealing.

It sounds like you should just save in your own name and then decide in the future whether or not to gift it to her.

Stealing?  Come on.  It would be a parent holding money on trust for a child, nothing more.  Stealing at law (I'm a lawyer) requires dishonest intent and an intention to deprive.  Neither present here (and it's embarrassing to even have to consider whether this is stealing).

As a trustee why wouldn't you hold it in a trust account? An account that you already have - and it's easy to open more bare trust savings accounts - rather than mixing it with your own funds and causing problems? As a lawyer, you ought to understand the obligations a trustee takes on. You really shouldn't mix finances.

Trusts arise informally all the time.  A parent can generally hold property on behalf of their child without issue.  

I would be wary about overcomplicating what is a fairly mild proposal by reference to stealing and fiduciary duties. 

Parents have to be able to (apart from some types of account) be able to administer their children's finances.  If that includes holding it on trust then, again in the real world, I find it hard to believe the police would be knocking on anyone's door.

Alright well then there's the other and probably simpler aspect of fraud. Fine to put it in the child's name when children's accounts attract the most interest, but as soon as the adult accounts are paying more, let's yank that money back into the parents name. 

I do agree that there's little likelihood of the rozzers turning up for this, but it's blatantly dodgy behaviour nonetheless.

Fraud?  It's just ensuring that the child's assets are being well looked after.  The very definition of good administration!

Exercising legal rights is not usually fraud absent dishonesty.  Again, there is no dishonesty here.

Sg28

Not sure why 3 of my posts here were deleted? 

While I accept that, depending on your circumstances, it may have tax and IHT implications.
I maintain that the assertion that, removing money from your own childs account into an account in your own name constitutes stealing, is totally absurd, and this is proven by the legal information posted by other posters above.