Told I can’t use this premium bonds money for our house deposit as it’s illegal?

It doesn't. The money legally belongs to DD. She is the custodian of the money and has the right to remove it from the PB and use it to benefit DD. Using it for a sofa would not pass the threshold.

Legally, if DD is under 16 and you are the person legally responsible for the bonds, you can withdraw the money and use it as you wish. It’s obvious that you’ve just used this as a way to invest more in bonds than you are legally entitled to. Not sure why you didn’t put one account in your name and one in your partner’s, as you talk about “we” and “our” income? Morally, the money belongs to DD, legally to you. Your call.

MN is full of such piss poor, self righteous advice. You are the guardian of the money and can spend how you see fit for the welfare of the child until they are 18/16 dependent on circumstances. Be it housing, essential maintenance, whatever. A child needs a home.

The solicitors will have no issue with this. Also, you’re not even using it for the deposit - you have that. Self righteous, faux , internet lawyers could well do with stepping away from the computer and practising reading comprehension.

Withdraw it and set up a new home.

If you are a higher earner and have been hiding it from the tax man- you can expect them to want to take a closer look when they run audits.

That’s about as likely as me waking up tomorrow and finding I’m 18 again.

In my mind, this could be construed as an attempt to "get round" the £50,000 limit. If the money "theoretically" belongs to you, how would you like it if you won a million pounds... then told you were disqualified because you have gone above the limit and YOU are holding £80,000...???

A JISA is completely different. You can't get the money out only the child can when they are old enough. Unless they die or are diagnosed with a terminal illness.

We had to use our daughters (not as much as yours £10.000) when she was 5 tomake our house safe after some things happened. We paid it all back and started saving again for her when we could.

Surely you can just take it out of her account and transfer it to yours? You are investing it for her in the house anyway and when you die it'll be hers anyway.

Don't feel bad about. She's five

Ok so this is your DD's money, sat in your DD's account and you do not have any intention to use that money for your own purposes? Obviously thats fine but it's completely irrelevant to the post you were responding to which was about what to do if (like this thread) you are saving money for a child, but might want to change your mind later on whether it's actually the child's money.

It's terrible advice to say that a reason to put money you might want to access for your own purposes later into a child's name is to keep it out of divorce proceedings. Which is what you said if you read the post you were disagreeing with.

I’m not getting divorced!

The money has always been saved in DD’s account, monthly, since she was born. It has never been a marital asset it has always been hers and my DH is fully aware. It’s a large amount (5 figures).

Should I get divorced (wouldn’t rule it out-everyone in my family is) the money is DD’s and my awful with money DH can’t access it or spend it. He would given half a chance.

My dad saved money for my brother and I in our own names, he and my mum did divorce- but it wasn’t hidden my mum was also well aware of the savings.

I didn’t mention hiding assets, just that it is a consideration to give money directly to children if you wouldn’t want it being included in a future divorce. I will inherit a lot and a big chunk of that that will also go direct to DD if I am married at that point.

I have put money in an account in DD’s name so it is not marital money and cannot be included in a divorce.

This was in response to:

You should never put money in to your child's name you might want to access.

I don't know @Cobblersorchard personally so I don't know if she has divorced or was just saying she has been arranging her assets in preparation for divorce and is just planning to commit perjury, but hasn't yet done anything but commit fraud when opening the account. I admit I did jump to the former as the explanation, and maybe shouldn't have done but I'm not struggling with reading.

You know that the divorce settlement can be reopened if that's discovered, right? I know that this is Mumsnet but I'm still surprised that you're opening admitting hiding assets in divorce proceedings and making a false declaration on Form E (which is perjury). Plus of course the fraud when opening the premium bonds account, but that's probably the smallest issue!

Please tell me people get this is illegal?!

A few guidelines

Yes it's also illegal to put your money for your benefit into someone else's name to get an ISA tax avantage you're not entitled to.

Up to your limit is fine and legal. Any of your money over that (whomever's name irs in) is illegal tax evasion.

Including ISAs?

I mean £30,000 in premium bonds must be making a whole heap of difference!

no wonder the country is on its knees!

Do you understand Premium Bonds?

There's a maximum investment of £50K per person in Premium Bonds, as winnings are paid tax free. If someone holds £80K of their money in premium bonds they are tax evading, even if they nominally put some of their money in someone else's name.

Basically, it's not legal to pretend that some of your money belongs to someone else to gain a tax benefit, which putting it in your child's name, whilst still treating it as if it's yours is doing.

Do you understand premium bonds? It’s not interest. It’s winnings.

No, it wouldn't necessarily. It would go to the joint owner if owned as joint tenants. Otherwise it would go to whomever it was left to in the will.

This.

If they had no stake in ownership of the house, that would be pretty unreasonable.

If the friend was going to live in the house, it might not be that unreasonable.

Yes because the presumption of advancement applies to transfers to your minor children, but not to friends. It is much more difficult to argue that it is not a gift to your children than friends.
Of course your child is less likely to be able to object.

lol you can’t compare this to gifting a friend…. Actually that comparison is BS

If the money belongs to you, then you were committing tax evasion by putting it in you DDs name. This is a crime.

If the money belongs to your DD, then you are stealing her winnings from her each month If you are having them paid into your account, and if you use the money for your expenses such as stamp duty for a house not in her name or buying yourself furniture then you are also stealing her capital. Stealing your childs money is a crime.

So which is it? Your money or her money?

(You absolutely have the ability to legally withdraw her money from her PB account as her responsible person, but her money has to be managed in her best interests. Paying for your sofa or your stamp duty bill is obviously not in her best interests!)