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Money Moral Dilemma: Should I open savings accounts for my nieces?

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  • SJPMasterSJPMaster Forumite
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    The rules on money savings have been changed largely due to money laundering regulations. 
    The parents can set up all sorts of savings accounts for their children, but grandparents and other relatives can only give money into an account set up by the parent. If they do so via any other method they can be accused of money laundering.
  • PollycatPollycat Forumite
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    Speak to the parents first as they may have already set one up and then you can add to that.I just can't imagine any parent saying no to a sugestion such as yours,very thoughtful and forward thinking.We used to give the grandchildren a cheque for xmas to help them start to save for the future.Now there early teens and we've explained all about why we did this and the importance of building for the future,they are very appreciative of all we've done.Today they get more techno. gifts than direct money,but the important thing is the building block is there for them to add to whenever they want,after the're 18 the main decision is there's.
    Great response.
    My thoughts exactly.

  • NBLondonNBLondon Forumite
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    Good post. I've not done it but I know people that have. The few I am aware of heard of are all women. They often do this for the first 5/10 years of wedlock and if the see everything as good then they declare it. Never heard of a man doing that.
    That's what my mother called "running away" money.  Mind you, if it comes to divorce time it might be called "hiding assets" and apparently plenty of men do that....
    Wash your Knobs and Knockers... Keep the Postie safe!
  • jedavjedav Forumite
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    I saved monthly into a stock-market-linked investment for my godson.  I controlled it until he was 18 (so had to declare the income on my tax return), then cashed it in and gave it to him when he was 18.  What does your husband think may be insulting about it?  Another thought is control over the account.  My other half's ex-sister-in-law raided her (two) sons' savings accounts when she wanted some money (and had the money from her father's equity release on his house paid to her - she's like that).  You know your relatives best.  Could you consider a junior ISA?  Could you put away money in accounts ear-marked but under your control for them and withdraw on a significant birthday/life event?  Could you talk to their parents about it?
  • PollycatPollycat Forumite
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    jedav said:
    I saved monthly into a stock-market-linked investment for my godson.  I controlled it until he was 18 (so had to declare the income on my tax return), then cashed it in and gave it to him when he was 18.  What does your husband think may be insulting about it?  Another thought is control over the account.  My other half's ex-sister-in-law raided her (two) sons' savings accounts when she wanted some money (and had the money from her father's equity release on his house paid to her - she's like that).  You know your relatives best.  Could you consider a junior ISA?  Could you put away money in accounts ear-marked but under your control for them and withdraw on a significant birthday/life event?  Could you talk to their parents about it?
    The originator of the 'dilemma' didn't say her husband thought it was insulting.
    MSE_Sarah said:

    Last year I wanted to give my two nieces, aged two and six, some money for Christmas (as well as presents). I researched opening a savings account for each of them, as their parents hadn't done so. But my husband told me I'm meddling and to stop, as it might make my brother and sister-in-law feel bad.


    The possibility of feeling 'insulted' was mentioned by another poster.


  • gloriouslyhappygloriouslyhappy Forumite
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    John_Gray said:
    Why has there been no discussion of the outrageous conduct of the husband in this Dilemma?  "my husband told me I'm meddling and to stop"
    He is supposed to be supportive and encouraging, not censorious and deprecating.
    The Moral Dilemma should really have been: "Should I divorce him now, or later?"
    </snarcasm>
    Haha, sounds like you've been on mumsnet!  :D
  • justworriedabitjustworriedabit Forumite
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    NBLondon said:
    Good post. I've not done it but I know people that have. The few I am aware of heard of are all women. They often do this for the first 5/10 years of wedlock and if the see everything as good then they declare it. Never heard of a man doing that.
    That's what my mother called "running away" money.  Mind you, if it comes to divorce time it might be called "hiding assets" and apparently plenty of men do that....
    I have never heard of a man hide his money before the staying together but I'm sure they do but more often it is women just in case the man goes off with someone.  Things are changing for sure as just as many women are cheating as men and it is actually worse when women cheat, ie could get pregnant by their lover/one night stand and the husband thinks its their child.
    Years ago an older lady that worked with us told a friend that her husband had secretly carried out a dna test. She made a song and dance about it when she saw something on the cc and further investigated as it was dna test money The husband fessed up she made a big deal but then backed down thanking her lucky stars as it was her husbands child as she had around that time had a one night stand as was not sure who was the daddy as they say.

    A good marriage well part of the parcel is, trusting, sharing money as OURS and his/hers/etc. 
  • thepurplepixiethepurplepixie Forumite
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    I think you have to speak to parents as when I was opening accounts for my grandchildren I needed their passports and proof of address.
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  • crmismcrmism Forumite
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    I don't know about the parents feeling bad, but money laundering regulations may well prohibit your opening accounts in the names of your nieces. In a past life, I came across a similar situation (launderer for his "brother") and the bank rightly wouldn't entertain it and it was reported to the regulator.
    Just mention what you propose doing to your brother, who as parent can open accounts for his daughters, but if he and his wife don't want to do that simply write them cheques, eg name of parent, on behalf of niece's name.
  • justworriedabitjustworriedabit Forumite
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    crmism said:
    I don't know about the parents feeling bad, but money laundering regulations may well prohibit your opening accounts in the names of your nieces. In a past life, I came across a similar situation (launderer for his "brother") and the bank rightly wouldn't entertain it and it was reported to the regulator.
    Just mention what you propose doing to your brother, who as parent can open accounts for his daughters, but if he and his wife don't want to do that simply write them cheques, eg name of parent, on behalf of niece's name.
    Parents can feel bad.
    About money laundering, not a issue at all if Mrs Aunty deposited XXXX pounds in Master Nephews account directly from her bank account as this will show a trail. Smaller mounts possibly under a few thousand won't, don't often matter unless it's a regular thing.

    I reiterate, oepning accounts as per OP's post will often mean they have control over the money until the child is whatever age that is agreed but is money is given to the childs parents, they could do as they wish with the money, ie smoke, drink it away and/or 3/4 hoildays a year
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