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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:
WaitingForSanity · 02/12/2021 21:45

They all had the same amount put into bonds. One has luckily won it.
I would absolutely split it between all 3.

Goldbar · 02/12/2021 21:45

Isn't it up to the parent or guardian administering the account to decide what to do with any winnings? If so, it's not strictly held on trust.

I would split it and say nothing. There is no way I would let what was intended as a generous gesture potentially fracture and poison relations between my children. If you don't split it, you're storing up a whole load of trouble for when your DC turn 18.

Greydogs123 · 02/12/2021 21:46

Start a pension for them. They’ll have the benefit of the money, but not at a young age when it might cause problems between the siblings.

RogueV · 02/12/2021 21:49

Absolutely split it

Beechwood · 02/12/2021 21:49

I'd share it between mine, give them all a little nest egg. As their parent I would be comfortable taking that decision.

Funny, I was reading about chocolate bars today which have the possibility of a £10,000 golden ticket included. I considered it as a stocking filler....then decided against it worried about 'but what if one of them won it' - it would likely ruin Christmas for the others.

senua · 02/12/2021 21:55

How will this work into the future. Can you try to even it up a bit by paying for driving lessons, University expenses, etc for the unlucky two but not the lucky one? Or will that create another can of worms.

LindaLooky · 02/12/2021 21:57

I'd split it without hesitation, just feels fair to me. I think its quite nice for the kids to think of it as "our money" and "our luck". I wouldnt begrudge my parents if they'd shared winnings amongst my siblings.

It would be different if you were taking it for yourself and buying cashmere joggers or some such extravagance.

Tippexy · 02/12/2021 22:04

It sounds like the win is £50,000. Of course you can't split it! It's not your money to decide!

Tippexy · 02/12/2021 22:04

@Goldbar

Isn't it up to the parent or guardian administering the account to decide what to do with any winnings? If so, it's not strictly held on trust.

I would split it and say nothing. There is no way I would let what was intended as a generous gesture potentially fracture and poison relations between my children. If you don't split it, you're storing up a whole load of trouble for when your DC turn 18.

And what happens when the winning child finds out?
Tippexy · 02/12/2021 22:06

@Naughtynovembertree you keep saying "don't tell them," but the winning child will find out - then what?

ArtfulScreamer · 02/12/2021 22:07

Ask the kids at the ages they are at they are old enough for an informal dinner table chat about what would they do if and make up a story reflective of the situation but about some other family. Whatever the winning child chooses to do is what you do.

RubyTuesday70 · 02/12/2021 22:13

Don't forget that the other 2 could have wins too at some stage.

So the issue may resolve itself with time.

We get something every month.

SarahBennettAdvice · 02/12/2021 22:15

I would stash the cash somewhere it’ll earn interest until the youngest of the three is old enough to participate in a conversation where you sit then down and tell them one of them has won £x and without telling them which one it is, let them decide between them whether they would want it to be split or the winner retain the pot.

Sleepdeprived42long · 02/12/2021 22:29

I’d ask yourself what the person who bought the bonds would have wanted. To everyone saying it’s not legal, if it were me, I’d put trust in my children that they wouldn’t take legal action against me and their siblings in future if I decided to split it!

SlipperTripper · 02/12/2021 22:38

It's not illegal to split it. As a parent, you have full control of a child's premium bond account until they are 16 - legally you can do what you like with the money, bonds or winnings.

I say this with confidence. DSDs mother has emptied her account, and NS&I confirmed there's bugger all that can be done as she had control at the time, despite it being in DSD's name.

Personally, I'd split it between the three DCs. But be aware that when they take control of their accounts there's a full breakdown of money in and out, so I'd be upfront about it - otherwise you potentially face an awkward conversation further down the line.

MollysDolly · 02/12/2021 23:12

You do know the bonds are completely under you control. There's nothing stopping you from cashing the lot out, including the winnings, for yourself.

Whilst that would be a shitty thing to do, I just wanted to point out that you are fully able to do that because you're getting a lot of false information here. So absolutely you can distribute what you wish.

In fact, what you could do, is cash out the lot. Then with the total split in three, purchase new bonds, all equal in monetary value, and the kids will never know who won because those bonds don't exist anymore.

Ana27 · 02/12/2021 23:21

But there is a difference between having control and having ownership. She has control as trustee of her child’s money

Kite22 · 02/12/2021 23:25

I had this discussion with my 3 when they were similar ages.
They had all won £25 or £50, and I was just dreaming of any one of us winning a big win, and I asked them what they thought would be the best things to do, if any one of them won £100K or £1million.
We decided there and then they would all rather each have 1/3 of a big win each, than one of them have the whole amount and neither of the other two get anything.
I see it the same as a Pools or Lottery syndicate - each giving yourself 3 x the likelihood of winning 1/3 of the amount. Unless you are big gamblers, then that seems the fairest solution.

As it turns out, none of us ever did win big, but we can dream Smile

Have you told them yet ?
Do they know whose bond is the winning one ?
OR are you in time to have the discussion in theory, before they know one of them actually has won ?

TheSmallAssassin · 02/12/2021 23:28

If the grandparent wanted things to be "fair" they shouldn't have given premium bonds, where luck is the whole point.

I'm a bit confused about you "holding them in trust" until they are 18 though, cause the bonds will automatically get transferred to them at 16.

MollysDolly · 02/12/2021 23:30

@Ana27

But there is a difference between having control and having ownership. She has control as trustee of her child’s money
Yes. If OP cashed the lot out, her children could sue her in later life. But she can still do it.
DamnYouAutoCarRental · 02/12/2021 23:51

We had the theoretical discussion and our kids would choose to split and never find out who the winner was, the actual decision hasn't come up for us though!

BookShark · 03/12/2021 00:02

Ask the grandparents. My parents have bought premium bonds for DD, but I know they've done it to give her savings, not because they expected her to win. If any winnings were going to improve family life overall, they would absolutely back me in spending it that way - I would ask before doing it, but I know that would be their intention, and as they invested the money, I'd feel comfortable in using it to benefit us all, if they were happy with that.

BookShark · 03/12/2021 00:06

Sorry, just re-read and noticed the grandparent is no longer with you. In that case I'd go with the easy option of re-investing on behalf of the winner, but then equalising this through rebalancing the amounts paid into savings accounts etc. so you minimise the disparity.

Sleepdeprived42long · 03/12/2021 00:33

@MollysDolly

You do know the bonds are completely under you control. There's nothing stopping you from cashing the lot out, including the winnings, for yourself.

Whilst that would be a shitty thing to do, I just wanted to point out that you are fully able to do that because you're getting a lot of false information here. So absolutely you can distribute what you wish.

In fact, what you could do, is cash out the lot. Then with the total split in three, purchase new bonds, all equal in monetary value, and the kids will never know who won because those bonds don't exist anymore.

This ^ is best suggestion yet. Cash out all bonds and purchase new bonds for all children with the original amount plus division of winnings.
Kite22 · 03/12/2021 00:51

@BookShark

Sorry, just re-read and noticed the grandparent is no longer with you. In that case I'd go with the easy option of re-investing on behalf of the winner, but then equalising this through rebalancing the amounts paid into savings accounts etc. so you minimise the disparity.
OP has already said this is never going to be a possibility - the win is more than she earns in 2 years.