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Smart Access from Nationwide
eldaniel
Posts: 264 Forumite
Hi,
I was thinking about opening Smart Limited Access saving from Nationwide in the name of my kids.
It says on Nationwide website that if the account is opened by an adult, the adult will be acting on behalf of the child (as a ‘bare trustee’). Although the account is in the name of the adult, the money in the account is held for and belongs to the child.
Our kids are very young. What is there to stop me to use it in 1-2 years time as i.e. mortgage overpayment on our house or spend it otherwise?
Thanks
I was thinking about opening Smart Limited Access saving from Nationwide in the name of my kids.
It says on Nationwide website that if the account is opened by an adult, the adult will be acting on behalf of the child (as a ‘bare trustee’). Although the account is in the name of the adult, the money in the account is held for and belongs to the child.
Our kids are very young. What is there to stop me to use it in 1-2 years time as i.e. mortgage overpayment on our house or spend it otherwise?
Thanks
0
Comments
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Nothing other than your own moral codeI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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https://www.nationwide.co.uk/-/media/MainSite/documents/products/savings/summary-boxes-live/on-sale-products/P3198-SmartLimitedAccess.pdf
If the account is opened by an adult, the adult will be acting on behalf of the child (as
a ‘bare trustee’). Although the account is in the name of the adult, the money in the
account is held for and belongs to the child.
This money is a gift to your children and you hold it as their Trustee - using the money as you describe would be a breach of trust.
https://www.telegraph.co.uk/finance/personalfinance/investing/11286926/Martin-Lewis-the-eight-questions-Im-always-asked-about-childrens-savings.html
Opening an account for a child with the intention of using the money for the donor's own use is at the least morally questionable and probably fraudulent.
http://www.legislation.gov.uk/ukpga/2006/35/pdfs/ukpga_20060035_en.pdf
And see here regarding the taxation of interest arising on a gift by a parent to his unmarried minor child (outside a tax privileged account like JISA).
https://www.gov.uk/savings-for-children0
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