child savings

treasurer23

gravel_2 said:

You are probably not looking at enough money for it to be economical for you to look at options like trusts - such products could enable you to restrict/postpone access to a later age.

If your primary concern is preventing access at 16 or 18 then your best option may be to save in your own name and then decide when and how son receives the money. This obviously means the money is fully in your name and potentially you are on the hook for tax (depends on your own financial position, of course). It also means your son will not have the (potential) benefit of having a chunky ISA in his name that is safe from income tax.

perfect - thanks so much. I was looking at potentially a joint account where 2 signatures are required for withdrawals however that opening yet another can of worms!

gravel_2

treasurer23 said:

@gravel_2all his money comes from child benefit and from monetary gifts from grandparents and great grandparents, and has also gone straight into his own account, never mine. Does that make a difference?

Child benefit I would suggest is your money so that probably would fall within the guidance on that link.

Gifts from grand parents are not included so safe there, but need to be able to prove it in case HMRC ever comes looking. You've said they have paid in directly so that may be easy to show. If you were to withdraw from the savings account and then pay it into somewhere else I'm not sure what that does to the status of the money.

treasurer23

gravel_2 said:

treasurer23 said:

@gravel_2all his money comes from child benefit and from monetary gifts from grandparents and great grandparents, and has also gone straight into his own account, never mine. Does that make a difference?

Child benefit I would suggest is your money so that probably would fall within the guidance on that link.

Gifts from grand parents are not included so safe there, but need to be able to prove it in case HMRC ever comes looking. You've said they have paid in directly so that may be easy to show. If you were to withdraw from the savings account and then pay it into somewhere else I'm not sure what that does to the status of the money.

ah fair enough - I guess I've never considered it my money but can appreciate that might not officially be the case. Thanks very much for sharing your opinions (although I still have no idea what to do!)

gravel_2

Yes it's tough. A lot of people come here with a similar concern - control at 18, maybe they will be silly, immature etc. Normally the comments settle on trying your best to ensure the child is educated, understands money, the amazing benefit you are building for them etc.

Your position seems harder still as you have mentioned this external threat to the money. 

Flugelhorn

treasurer23 said:

gravel_2 said:

treasurer23 said:

@gravel_2all his money comes from child benefit and from monetary gifts from grandparents and great grandparents, and has also gone straight into his own account, never mine. Does that make a difference?

Child benefit I would suggest is your money so that probably would fall within the guidance on that link.

Gifts from grand parents are not included so safe there, but need to be able to prove it in case HMRC ever comes looking. You've said they have paid in directly so that may be easy to show. If you were to withdraw from the savings account and then pay it into somewhere else I'm not sure what that does to the status of the money.

ah fair enough - I guess I've never considered it my money but can appreciate that might not officially be the case. Thanks very much for sharing your opinions (although I still have no idea what to do!)

child benefit money is definitely yours - honestly if you want to keep the money safe and not let him have access at 16 / 18 then you need to have it in your name 

DiamondLil

Flugelhorn said:

child benefit money is definitely yours - honestly if you want to keep the money safe and not let him have access at 16 / 18 then you need to have it in your name 

This is what I am doing for the grandchildren; individual accounts in my name, each designated to a particular child. My will takes care of what I want to happen to the funds should I depart before I've given it to them.