Premium bonds for child with learning difficulties

Lockerbielad

Hello everyone,
I'm new to the forum so hopefully you'll cut me a bit of slack if I don't get things right.
I'm hoping that one or more of you experienced with premium bonds will be able to help.
I have a very severely mentally disabled grand nephew to whom I'd like to give a gift of premium bonds so that he will have his own money, just to be spent on his needs.
I know that this can be done for children under 16 years with the parents being the administrators and the children having control when they turn 16.
However, my nephew will never be able to assume responsibility and will rely on others for 24 hour care for all his life.
I can't seem to find an answer to my question, which is: can I some how make the premium bonds gift were his parents will be able to administer for him beyond his 16th birthday.
Thank you in an advance for your consideration.

gravel_2

If your grand nephew doesn't have capacity then one would hope/assume the parents may already have, or are planning to have, some form of power of attorney or responsibility for the affairs of the child. This potentially would cover your concerns if you are happy for the parents to control the funds? In that scenario there's probably limited room to  dictate how the funds are used so there is a degree of trust required.

Albermarle

As the child will no doubt be receiving benefits as an adult, it is better that they have no/little assets, so as not to affect benefit eligibility. OK a few PB's would be OK if it can be organised.
Probably better though to say to the parents instead that you will help financially when needed. Usually you would expect there to be some extra expenses due to their disability, that you could maybe help with.

If your grand nephew doesn't have capacity then one would hope/assume the parents may already have, or are planning to have, some form of power of attorney or responsibility for the affairs of the child. 

P of A is not a possibility, as the child/adult seems unlikely to be capable of signing or understanding the necessary forms. At age 18 the young adult becomes the official responsibility of social services. However if they still live with parents, then day to day practical responsibility is effectively delegated to them, and any needed decisions are taken on a 'best interests ' basis, between parents, social services, care providers, doctors etc.

It used to be possible for parents to apply for a deputyship with the Court of Protection, but that is now only granted in exceptional circumstances. 

Lockerbielad

Thank you very much to you gravel 2 and albermarle for the advice. Especially albermarle. I hadn't thought about these things and the problems they may cause. You're right about capacity to give to give consent for PoA. My grand nephew is extremely severe so has no concept of any of these things.
Your suggestions make an awful lot of sense. His parents live for him and are therefore completely reliable. I'll have to make some arrangements with them, especially for when I'm not longer in this world. Thank you again to both of you for taking the time and trouble to reply to my post.
All the best and God bless

Bigwheels1111

I second albermarle, your good will could punish the child, young adult in the future.
My friends son is non verbal autistic.
He will never live unattended, so will require benefits all his life.
All of his family wanted to give money to secure his future.
A natural reaction.
It goes against the flow to withhold money from someone in need.
The family are looking at a house move with an annex to give him a little independence.
No the rest of the family are putting what they can aside to give to his parents to make this a reality.

LHW99

You could save in an account (premium bonds / ISA so there is no tax implication) and ensure that account is earmarked for him by eg designating it as such in your will (maybe via his parents)?.

Not foolproof entirely, as debts would needto be paid from the estate,so the money could be used for that first, but that would mean there was something available if a larger need arose.

Albermarle

Lockerbielad said:

Thank you very much to you gravel 2 and albermarle for the advice. Especially albermarle. I hadn't thought about these things and the problems they may cause. You're right about capacity to give to give consent for PoA. My grand nephew is extremely severe so has no concept of any of these things.
Your suggestions make an awful lot of sense. His parents live for him and are therefore completely reliable. I'll have to make some arrangements with them, especially for when I'm not longer in this world. Thank you again to both of you for taking the time and trouble to reply to my post.
All the best and God bless

It is possible to leave money to a disabled person in a trust. Either in a will or before.
Normally trusts are a bit of a nightmare, but there are specific rules around a Disabled Persons Trust that make them more tax and user friendly.
As the money is in a trust it is not actually belonging to the person so does not affect benefits.
The parents may want to do this themselves, or put something in their wills to that effect. Or if you think they are reliable it might just be easier to leave them money, with a note that you would like some of it spent on your grand nephew. 

ZombieEthel

Maybe try Mencap's wills and trusts service?

MSE won't let me post links, so Google Mencap Wills and Trusts.

Lockerbielad

Thank you all for trying to help. I had thought about a trust for him him but I don't really know how trusts are set up or their benefits. I will now look into them i

Lockerbielad

Sorry, I don't know hat happened with my last post. It got posted prematurely somehow. I will look into trusts for him in more depth and will speak to his parents as well. Thank you all.