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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:
Zampa · 02/12/2021 20:08

If I were in the same situation as OP, I would split the money between the siblings.

I don't think it's in the winning child's best interest to be the "winner" when their competition is their siblings.

The potential future bad feelings and animosity that could be created throughout the whole family by one child only benefiting from simple good luck isn't worth it to anyone.

Original poster
SmileAndNod · 02/12/2021 20:11

The accounts were opened a long time ago when youngest was a baby so 8 years or so and yes gp were still alive then as they bought the bonds. GP would also not want to create anything other than a fair situation, but then would also never imagined a win bigger than £25!

It's going to be kept in a separate account (I'm going to look around to see what would work) for child to do what they think best when they turn 18. Hopefully they won't sue me should they get their dream job!

I'm all too aware it isn't my money. I would have literally no problem spending that amount. I'd convert the loft to give us the 4 bed house we need or take us all on a holiday that we've never had.

OP posts:
byvirtue · 02/12/2021 20:11

Personally I would split it and never mention it to anyone.

What pp are saying about it legally being theirs is fine in one sense but completely unfair to the other siblings who let’s face it are highly unlikely to get a big win. By not dividing the money you are giving one child preferential treatment which will likely lead to further problems down the line. I can imagine trying to give the others more money for other things to try and even it out when really it will just cause resentment. When it comes to money split it between them.

HandlebarLadyTash · 02/12/2021 20:12

I would split the big win 3 ways

Fireflygal · 02/12/2021 20:14

I think splitting is essential as it could such issues later on between the siblings. It was just pot luck that one bond won...I imagine the grandparents would have wanted this.

Naughtynovembertree · 02/12/2021 20:17

Yes ginger so how can his brother ask him for money.
Of course he lost an eye Confused

But now they are living very different lives, in all sorts of ways.
It's the money disparity that's affecting them most. You can imagine can't you the diffenxes

NameChangeinHaste · 02/12/2021 20:19

I’m another one who would split it. Can’t imagine how people could choose to put the children in a situation where one child has a leg up and the others got nothing.

Naughtynovembertree · 02/12/2021 20:20

Op this will be awful for the other two dc.
Don't tell anyone, look urgently into index funds, s and p 500, etc and do a little research, listen to boggle heads, Jack boggle, vanguard.
You can really grow and make this into a great start for all the dc.
I won't open up pb for this reason.

On however the pb threads many people do spilt wins between their dc. And I would absolutely do this had I opened up pb for them. I would without hesitation spilt up

Naughtynovembertree · 02/12/2021 20:22

If its 40 grand, and you invest it properly with it split.. you can grow that into about 25/ 30 grand in ten ish years.
. Is that so bad?

EthelbertTheTiger · 02/12/2021 20:34

It's only fair to share it between them. I am one of three, and we received premium bonds from our grandparents. My family had a rule that if any of us won a significant amount (I think over £100), it would be split between the three of us. We could keep our winnings if it was less than that or when we turned 18. Our grandparents had a similar rule for our parents when they were children, and our parents made sure to explain the rule to us once we were old enough to understand. Sadly, we had no big winnings, although I once won £25 and was delighted at not having to share it Grin

H0bnob · 02/12/2021 20:34

My sister and I were gifted premium bonds as children and parents always said anything over £1000 would be split. We are both adults now and would still do the same. Don't think DPs ever even considered the legalities...it seems so unfair to just give it the one child surely?

burnoutbabe · 02/12/2021 20:39

@TellingBone

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

Yes that seems fairest to me.

And Then never tell them who actually won!

tootiredtospeak · 02/12/2021 20:42

Are you all being serious as the parent you can make this decision and yes your child could grow up and challenge you legally but in the real world are they actually going to do that. I have 3 kids and I would split it and dont actually think I would even ever tell the one who won it.

mrsm43s · 02/12/2021 20:43

@SmileAndNod

The accounts were opened a long time ago when youngest was a baby so 8 years or so and yes gp were still alive then as they bought the bonds. GP would also not want to create anything other than a fair situation, but then would also never imagined a win bigger than £25!

It's going to be kept in a separate account (I'm going to look around to see what would work) for child to do what they think best when they turn 18. Hopefully they won't sue me should they get their dream job!

I'm all too aware it isn't my money. I would have literally no problem spending that amount. I'd convert the loft to give us the 4 bed house we need or take us all on a holiday that we've never had.

I think keeping it in one account (in the winning DC's name) and then letting the winning DC decide what to do with it once they are 18 is absolutely the correct thing to do, both legally and morally.

Right now, one child has had better luck than the others, but that's the way the cookie crumbles. There will be plenty of other times in their lives, I am sure, that the lucky one now will not be so lucky as their siblings and vice versa, that's just the way life is.

OP, ask yourself honestly, right now if YOU had won that amount, would you be happy to split it equally with your sibling(s)? If not, why on earth would do that on behalf of your child? And particularly without their adult, informed consent.

Sweetchocolatecandy · 02/12/2021 20:46

@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

Sorry to go off-topic but what funds do you have to get 30% interest?!
Mantlemoose · 02/12/2021 20:47

I would do whatever the GP who purchased the PB would have wanted. My GP would have wanted it split between all three and never a word mentioned to them. I certainly wouldn't spend it on house/holiday though..

DoncasterHombre · 02/12/2021 20:47

Absolutely split and share between them - do the same with any future winnings too.

Good on them and ,may their good luck continue :)

Teenagedream · 02/12/2021 20:50

We had a verbal agreement that any winnings would be shared until they reached 18. Only small amounts won but I thought that dad the fairest arrangement.

Embracelife · 02/12/2021 20:52

convert the loft to give you the 4 bed house you need

AllThatFancyPaintsAsFair · 02/12/2021 20:53

I can't imagine not splitting it equally,

It's totally outside my understanding that parents would allow one child to benefit from literally the luck of the draw. Crazy.

Naughtynovembertree · 02/12/2021 20:57

I have a range in my own isa.
My Scottish mortgage is currently 171%.but obviously that's highly unusual, I paid two grand ages ago for it and now it's worth around 6 thousand.
But that's my gamble fund
Everything else is index funds, vanguard etc. For the children I keep it steady... Index funds, vanguard life stragety funds

Ana27 · 02/12/2021 21:20

it’s not illegal for you to redistribute the money, that’s total bollocks.

Why do you think that CavernousScream ? It's the child's money not hers to do with as she wishes.

Impatientwino · 02/12/2021 21:22

I too would split it between my children equally

KeyboardWorriers · 02/12/2021 21:29

My general understanding of trusts law is that legally you cannot share it. You hold it in trust for that child. Admittedly its 15 years or so since I left law school but I would advise you not to share unless you get confirm from a real life lawyer that this is ok.

What you can do now is focus on saving just for the other two, to even things up a bit.

Impatientwino · 02/12/2021 21:41

That's interesting Keyboard and a good suggestion of how to even things up. I didn't think about the legality of things.