Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

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:
feelsobadfeltsogood · 02/12/2021 16:24

My 2 have premium bonds and one won £5000
We put £100 a month in each - the child-benefit money and then we top it up a little bit too.
We split the £5000 as we had done previously with the odd £100 here and there

mrsm43s · 02/12/2021 16:27

And you shouldn't be worrying or feeling sick about this.

You have no decision to make.

Not your money.

You have no choice to split it, it would be legally (and morally IMO) wrong.

So relax! You do not have to make a difficult decision, as it is a decision that you do not have the power to make.

The only thing you need to worry about is investing it in the best (and safest) possible way for the winning child. So more PBs, plus the balance into Junior Isa is a good option, but perhaps speak to an IFA on your child's behalf.

If its in the £50-75K region, then splitting it would seriously limit what the winning child could do with it. The whole sum is life changing in terms of being able to get on the property ladder at a young age, splitting it in 3 would make it a much less significant and life changing amount.

Original poster
SmileAndNod · 02/12/2021 16:27

No and we never would sway their judgement. Also the child in question currently wants to go into law and so I definitely wouldn't!

No it's not life changing but as I said it's double what i earn in a year so there's no way I'd be able to make up that amount for the other 2 sadly.

I just want to make sure that the money works hard for them. I'm not into investing and stuff as I've never had money.

I'm only happy that they may not have to struggle as much as I have in life

OP posts:
thevassal · 02/12/2021 16:53

Argh it's hard. I think I'd say split it as its obviously fairest, but when do you end that? What if the oldest two cash in theirs when they turn 18 and then the youngest won, would you still expect them to give it to their older siblings? What if one of them win years in the future? Would the one who won this time expect "their" money back from the original win if their sibling didn't want to share thirty years later?

Snowinsummer · 02/12/2021 16:55

I would split it & keep quiet about it.

thevassal · 02/12/2021 16:57

Good point regarding the legality although I suppose if it's issued in the form of a cheque it must be made out to you as an 8 year old wouldn't have a bank account, so how do they know what you do with it?

If you can legally split it, could you ask all the kids to say individually whether they would choose to share or not without telling them who won?

gogohm · 02/12/2021 16:57

I personally would split it into junior isas. I do think you need to be upfront with them and tell them their (plural) premium bonds have won and you are putting it in a savings account each for when they go to university/21.

Kezzie200 · 02/12/2021 16:59

Out if nosiness how do you hear if its a big win? I know the million prizes have a special way but what about the other big prizes.

Did you find out today, like the 25 winners did, and

Did you find out by checking with an online app or did you get a different type of communication?

helpfulperson · 02/12/2021 17:02

As others have said, it's not your decision to make. That money belongs to the child. Your role as trustee is to safeguard it for them. The legal implications if you do split it and they object when they reach 18 could be significant.

Original poster
SmileAndNod · 02/12/2021 17:18

A letter came by post. A friend of a friend won the million prize a couple of years ago!

Im going to look into a junior isa, thank you.

OP posts:
BashfulClam · 02/12/2021 19:28

You cannot split it. It’s totally illegal to do so as it’s is not your money to decide. As a trustee you cannot just decide to take away 2/3 from one child whether that’s to be ‘fair’ or not. It’s theft.

Original poster
SmileAndNod · 02/12/2021 19:31

Yes that has been pointed out. I need to work out where to save the money.

OP posts:
PurplePinecone · 02/12/2021 19:34

I'd split it. If you manage to get all 3 children at the max allowance then more chance more would be won often. If there is anymore left after maxing their accounts then put that in an account for the winner?

Original poster
SmileAndNod · 02/12/2021 19:43

There's not enough to max out all their accounts with the winnings. Like I say not a life changing amount, some people would think nothing of it. But to me, who has never had anything it seems a lot.

I'll work out how to invest it. Don't want to do the wrong thing. FWIW I'm pretty sure that they would split when it's up to them. They're close and have each other's backs.

OP posts:
Sweetchocolatecandy · 02/12/2021 19:44

I would split it so all the kids benefit from the winnings.

FFSFFSFFS · 02/12/2021 19:46

Obviously split it! I can’t imagine that the grandfather wanted to create such an unfair situation!

TellingBone · 02/12/2021 19:52

Tell all three of them together that one of them has won [but not which one] and ask them to agree what they want to do with any and all winnings, keep or split.

Muhaha etc

Drunkpanda · 02/12/2021 19:52

Was this left in trust as part of a will? Because it sounds more like the accounts were opened and given to the children while the GP was still alive. I don't know if that changes the legality.

Winniemarysarah · 02/12/2021 19:58

@FFSFFSFFS

Obviously split it! I can’t imagine that the grandfather wanted to create such an unfair situation!
It’s not unfair though. An equal amount of money was gifted to all the children by the grandparents. They all had an equal chance of winning. As the children are under 16 the op is the nominated guardian. Taking one child’s winnings from money gifted by another relative is pure theft which the op could potentially be sued for if the child finds out in the future. It doesn’t matter how close the op think the children are or what she thinks they might decide on in the future, this is not her money to make this decision on.
Polmuggle · 02/12/2021 20:01

Of course you split it. Your children's futures shouldn't unequal based on luck when you can control that.

Naughtynovembertree · 02/12/2021 20:01

I know a child who lost a body part, an eye
He got a huge pay out, and its caused endless problems between him and his previous close brother.
Because he can afford to travel gap year in luxury, however sibling can't afford a gap year and parents can't afford to support him in one. The child who lost the eye has left uni totally debt free, and has purchased a very good first home. The other is a ssdlled with debt and can't get on the ladder

It's caused massive anxiety, animosity and family problems.

How old are they?
If they don't know about don't tell them! Spilt it and put it into index tracker funds like vanguard etc.
They average out 10% interest a year.
Usually more than than that, mine are running at 30%.

I've moved my ££out of pb now inspite of a few hundred pound wins and put it all in my stocks and shares isa

Naughtynovembertree · 02/12/2021 20:02

Give them all a decent start dont create animosity

41sunnydays · 02/12/2021 20:03

I have 3 kids and premium bonds. Any winnings would be equally split in 3. In my view it's the fairest way to manage it

CavernousScream · 02/12/2021 20:05

I think it depends a bit on which age child has won. If it’s the 8 year old and you invest well they could end up with really a lot more in ten years. If it’s the 14 year old there’s not that much time for the amount to increase and there’s time for the other children to win more. But it’s not illegal for you to redistribute the money, that’s total bollocks.

Ginger1982 · 02/12/2021 20:08

@Naughtynovembertree

I know a child who lost a body part, an eye He got a huge pay out, and its caused endless problems between him and his previous close brother. Because he can afford to travel gap year in luxury, however sibling can't afford a gap year and parents can't afford to support him in one. The child who lost the eye has left uni totally debt free, and has purchased a very good first home. The other is a ssdlled with debt and can't get on the ladder

It's caused massive anxiety, animosity and family problems.

How old are they?
If they don't know about don't tell them! Spilt it and put it into index tracker funds like vanguard etc.
They average out 10% interest a year.
Usually more than than that, mine are running at 30%.

I've moved my ££out of pb now inspite of a few hundred pound wins and put it all in my stocks and shares isa

FFS he's lost an eye!!