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Original poster

WWYD premium bonds

196 replies

SmileAndNod · 02/12/2021 15:43

I have 3 DCs. They were all given premium bonds when they were born by grandparents which I hold in trust until they're 18.

One of them has won quite a bit of money (to us). Not a life changing amount, but it would probably be a good heft of a deposit on a house.

Do we split into 3, and do the same if the other 2 ever won anything? And where do we put it? A lovely problem to have but I'm ever so slightly in shock.

OP posts:
StrictlySinging · 02/12/2021 15:48

Wow that’s both wonderful and quite a problem because you really can’t split it can you? The point of fairness being in play was presumably when they were each (presumably) gifted the same value of bonds.

Surely winnings belong to the child who won it.

CMOTDibbler · 02/12/2021 16:00

The winnings belong to the child who won them. I'd reinvest in Premium Bonds for them

Original poster
SmileAndNod · 02/12/2021 16:01

So far, each set of winnings, 25 quid here and there and sometimes 100 has been re invested into their own accounts so they have pretty much the same amount in their accounts. We won't be able to reinvest the whole of this amount so it will be paid by cheque (i think).

But then where do we put it?

Lady on phone (as I didn't believe it) said it's a nice time of year to win money and I could think of lots of good uses but it's sadly not my money Grin

OP posts:
mrsm43s · 02/12/2021 16:02

The winnings belong to the child with the winning bond. It's not your money to give away.

cathyandclare · 02/12/2021 16:03

I told my kids that any big winnings would be shared. Never happened though!!!

mugoftea456 · 02/12/2021 16:03

You've got to split it between them. So they all get the same amount when you give out to them.

This happened when I was younger. My brother (16 at the time) won a fair amount. Without any prompting from parents decided to split it between me and my other sibling.

20 years later he still reminds me of his generosity!

IAmHereForTheFood · 02/12/2021 16:04

I’d split it equally because they were all given the same gift but only one will benefit if you don’t split it.

My DGM bought us 3 siblings premium bonds. Oldest sibling is 52 & none of us has won a thing. If the others don’t win a penny it seems a very unequal gift.

HollowTalk · 02/12/2021 16:05

This is a difficult one and probably not something that their grandparents considered at the time. How old are the children now?

TheBitchOfTheVicar · 02/12/2021 16:05

We have bonds for our DC and would split a big win

mrsm43s · 02/12/2021 16:06

@SmileAndNod

So far, each set of winnings, 25 quid here and there and sometimes 100 has been re invested into their own accounts so they have pretty much the same amount in their accounts. We won't be able to reinvest the whole of this amount so it will be paid by cheque (i think).

But then where do we put it?

Lady on phone (as I didn't believe it) said it's a nice time of year to win money and I could think of lots of good uses but it's sadly not my money Grin

They can have up to £50k per child in PBs, so it's a really, really big sum if its too much to put in the PB account.

I'd top the PB of the winning child up to the max, and then open a Junior ISA in the name of the winning child for the rest, and put the surplus in there. If you still have money left after maxing out PBs and JISA, then put it in a savings account for the winning child.

HollowTalk · 02/12/2021 16:06

It's not as easy as saying she should split it between them. Those bonds in a child's name - the profits belong to the child and it's not up to the parents to split it.

seethecolours · 02/12/2021 16:07

If the win is big enough to need to be withdrawn, I’d split it and invest in junior stocks and shares ISAs

Ihopeyourcakeisshit · 02/12/2021 16:07

Going against the grain here but as you are 'trustee' until they are 18 I would divide it between the 3 of them.
When they are adults they will realise life isn't always fair, but as children I'd be doing my best to at least try and set them up up equally.

Gearedtoyou · 02/12/2021 16:08

Oh. That's hard but the money belongs to the child who won it.

Gearedtoyou · 02/12/2021 16:09

@Ihopeyourcakeisshit

Going against the grain here but as you are 'trustee' until they are 18 I would divide it between the 3 of them. When they are adults they will realise life isn't always fair, but as children I'd be doing my best to at least try and set them up up equally.
As "trustee" you're obliged to act in the interests of the child. Giving away their money doesn't do that.
Kezzie200 · 02/12/2021 16:11

It's hard but I think you hold it on trust so, in theory, the losing party could complain, even legally, if they were to ever know.

It's hard though. My kids had an informal agreement between them that anything 500 plus they'd split. They were never lucky enough to test it.

Once they got to 18 they were put in their own names so they wouldn't now.

mrsm43s · 02/12/2021 16:11

I think everyone seems to be missing the point that it's not OPs money to give away.

When you hold something in trust for a minor, you have responsibilities to make decisions to benefit the child involved. Just that child. Not what would be best for their siblings. Not what you think would be best for the family. Not what their grandparents would want. Not what some random on MN thinks is best.

It would be very hard to legally defend giving 2/3 of a large sum of money away as being in the best interests of the child who won the money. That is not your decision to make. They can choose to share it when they are 18, if they wish.

Original poster
SmileAndNod · 02/12/2021 16:14

Children are 14 11 and 8. Our gut feeling is to split it to be fair.

But I just don't know! It's actually making me feel rather sick. Im not well paid and I'd have to work for 2 years to earn that money.

I'm so pleased for them though, they deserve a bit of luck. The gp who opened the bonds passed a couple of years ago. Hoping he's feeling as chuffed for the children as we are in heaven.

OP posts:
Naughtynovembertree · 02/12/2021 16:16

Oh gosh that's very hard.
Is it life changing?
Can you make up what they won for me the other children?
If not I'd be tempted to split it and invest it in stock and share isa for all of them.

People say its unfair.. Perhaps but so is terribly sibling rivalry and jealously and its why I wouldn't do pb for children.
We have stocks and shares isa and I buy equally for each child.
Both funds have been achieving at least 30% for years now.

BleuJay · 02/12/2021 16:16

I would not split it. It belongs to the child and when they are 18 they can decide whether to share it with siblings.

BonnesVacances · 02/12/2021 16:20

I'd split it between the DC. Lucky things.

mrsm43s · 02/12/2021 16:20

@SmileAndNod

Children are 14 11 and 8. Our gut feeling is to split it to be fair.

But I just don't know! It's actually making me feel rather sick. Im not well paid and I'd have to work for 2 years to earn that money.

I'm so pleased for them though, they deserve a bit of luck. The gp who opened the bonds passed a couple of years ago. Hoping he's feeling as chuffed for the children as we are in heaven.

Again, it is not your decision, as it is not your money.

It needs to remain in the name of the child who owns it.
When they are 18 they can make the decision to split it with their siblings if they wish.

If you give away their money, they could take you to court and sue you for it. You could not defend giving their money away as being in their best interests.

You must act legally, in the best interest of the child who won the money.

I understand that this is difficult. But your hands are tied. It is not your money, and not your decision to make. You can choose to use your money to top up the accounts of your other children to equal things up, but you cannot give away the money that belongs to winning child, as it belongs to them.

As a trustee, you need to invest it in the best interest of the child who won it, or face legal redress.

1099 · 02/12/2021 16:22

OP I suspect legally you have no right to divide it up so maybe take some legal advice before you do. Also have you considered discussing with the kids what they think would be a good idea. Without telling them about the win just yet.

Didiusfalco · 02/12/2021 16:22

Gosh this is so tough, but it’s not actually your money is it? It would be unethical to take it and split it, or to use your parental influence to tell your child they had to.

Ihopeyourcakeisshit · 02/12/2021 16:23

Maybe seek qualified advice on the legalities of it?
Having just one child benefit would feel at odds with the spirit in which the gift was given, but obviously it's not that simple.