Ex withholding Daughters Child Bonds

Chayes17 · 27 October 2018 at 12:20AM

Hi All

When my daughter was born, she was given money for Birth, Christening, Birthdays, Christmas etc and we invested in 2 fixed rate bonds for her, contributing a little ourselves. My then husband was signatory. We did the same for our son and I was signatory.

We split up, I reinvested my sons money on maturity and then when he was 13, I paid it into his savings account with the express condition that he only use it for an important purchase and only if I agreed. I believe it’s good for them to have the responsibility and learn how to budget. 18 months later, he hasn’t touched a penny and has actually added to it!!

For months, we have been trying to persuade their dad to do the same for our 16 year old daughter (by text as he won’t speak to any of us on the phone and lives over 400 miles away. I don’t think he has had a phone conversation with them in over 8 years and only a weekly text!!)

Last weekend was their annual visit (the rare visits are down to him, not me) and my daughter asked about her money. He went on about me using it for bills (I could have just kept our sons money if I was that way inclined) and hinted that he didn’t trust our daughter cos he ‘knows what teenagers are like’!

Eventually, he agreed with her that he would transfer her money to me so that I could transfer to her. He is now dragging it out again, asking why there’s such s rush when it’s only for savings. She just wants to be on a level playing field as her brother and is now 3 years older than when her brother initially got his

The last 2 days he has been ignoring texts from the both of us. He’s never been a good dad and won’t spend money or time on them. He pays the very minimum in child maintenance that he can and tells me he hasn’t had a pay rise in 8 years!!!

I feel he is unreasonably withholding her money and it’s either just sitting in his bank account or he no longer has it and is playing for time. I still have the original bond paperwork.

I don’t know what to do next and, as a single mum on a low income, cannot afford legal advice. Any thoughts PLEASE???

Sorry for the long post but if you managed to get to the end, thank you for taking the time. :T

Chayes17 · 27 October 2018 at 10:07PM

Please can someone help???

Rachel83 · 28 October 2018 at 8:49AM

Unfortunately you can’t force him to do anything, he could have even spent the money? Maybe start your own investment pot for your daughter then you can at least say look I tried when it comes down to it. I’m not even sure what can legally be done, as even if you took him to small claims you don’t even know how much should be in her bank account. Other than knowing how much was in your younger sons.
I have similar with my children’s father, he has control of my daughters trust fund and I have control of my sons.

Chayes17 · 28 October 2018 at 12:17PM

Hi and thank you for your reply.

Fortunately, I still retain the original paperwork so I can prove their existence, bond number, term and interest rate, so I can easily work out their worth. Not to mention that the bank will know where money was transferred (ok, they wouldn’t give that information to me, but a small claims court would want proof from him I expect)

If he hasn’t reinvested her money then any idea how long he can withhold her money eg/ at what age he has to legally hand over?

I have now sent him an email advising I will be seeking legal advice (?) and that any attempt now to reinvest, would be viewed as an act of malicious spite and an element of control over his own daughter.

He would hate to be seen as a crap father to outsiders (which of course he is), but it’s all about appearances with him

I’m hoping it might persuade him!!

elsien · 28 October 2018 at 12:23PM

Not sure accusing him of malicious spite is the best way to persuade him to move things forwards, even if you consider it accurate. It may just lead him to dig his heels in further.

A quote from an earlier article by Martin:

If the money is in a child's name, it's their cash. However, for younger children the usual practice is to nominate a signatory (for example a parent or grandparent) who can manage and withdraw the cash without the child's approval, usually until the child is 16 – though some accounts let you give the child control earlier.

So for younger children it's quite easy for parents to use their cash; for older ones, you would need their permission.

As for whether it is legal to do so, I've consulted lawyers who, as is often the case, had mixed views. Some say it is criminal fraud, others say there's nothing in practice to stop it – though you could attempt a civil suit for breach of fiduciary responsibility.

For anyone worried about this scenario, that is one advantage of a Junior Isa or CTF: the money can't be withdrawn by anyone but the child once they're 18 (unless the child is terminally ill or dies).

So how was the money actually being held, and in what?

Chayes17 · 29 October 2018 at 10:22AM

Hi. It was held in 5 year fixed child bonds. Matured some time ago, but I honestly think he’s spent it.

As I can prove that bonds existed, can my daughter take any action?

Primrose · 29 October 2018 at 6:10PM

I think you might be able to take legal action as your daughter,s official guardian. Do you have access to a local citizen's Advice Centre who can suggest how you might be able to proceed ?

Alternatively I wonder whether a personal letter from your daughter to her father asking whether he has actually spent the money would trigger his handing over the money. She could tell him she feels she is now old and mature enough to take control of it herself as she needs to start setting up funds for a unversity education, knowing that with her mother's personal financial circumstances. she will be unable to receive any financial support from her.

Ex withholding Daughters Child Bonds

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