Hypothetical premium bonds sibling question

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My two kids have some premium bonds. We were discussing what would happen if one child won a significant amount.

Imagine one child won 1 million - what would you do? I think we'd split it 3 ways - 1/3 each for the kids and 1/3 for us to give them a better childhood (travelling, activities etc).

As far as I'm aware any significant wins get paid to the parents to do with as they see fit.

Read the terms and conditions you agreed to. You agree to manage them for the benefit of the child. I would argue giving away their winnings isn't in their best interests.

It would not be to the child's overall benefit if it wasn't shared fairly in the family

When my DH and I took our premium bonds for our kids we both agreed than any winnings over £500 would be split 50/50 with the other sibling

I'd argue that it would be in the child's best interest to share it, especially if they never knew it had been done.

Imagine having £333k and a wonderful childhood.

Or having 1 million, and a struggling sibling who has nothing. I'd imagine the sibling would struggle to maintain a relationship given the unfairness which ultimately came down to chance.

Given they both have 1k of premium bonds I think this is a very unlikely scenario.

But it does raise to question of where would we draw the line. I kind of feel any winning over £1k should be shared. If I asked them they'd agree I'm sure (they're both under 8 and have no concept of money but do understand they don't want one person to have something they don't have)

I was typing when you posted. Seems similar to our thinking. Any small but significant amount split between the kids.

1 million and we'd use some to have a better family life.

I'd ensure that they had equal amounts, but tie it up in some sort of trust as they wouldn't be sensible with 500k + interest at 18.

I wouldn't draw any down for myself though, we do well enough as a family that they enjoy a nice life, but I appreciate that's a nice position to be in.

I'd never hold bonds in my children's names for this reason.

In my head I'd want to keep things "fair" but removing 50% of a million pound win from one child and giving it to their sibling would definitely not be acting in that child's best interest.

I'd keep all bonds in mine and my husbands names and then they are ours to do as we chose with.

Keep them in your name otherwise there is a problem

I agree with this.

Whatever you do with it you’re being unfair to one child, so I’d just keep anything like that in your names and save for the kids in cash or something like a junior ISA (in the same fund as each other)

Agree that you should use the junior isa instead as the PSB have too much risk of one being super lucky and the other not! The junior isa at least gives them the same outcome (although if you do junior isa bear in mind that your younger will have a few more years than your older so you may want to even up then)

I understand you can opt for any winnings to be paid to you, which is what I've done with the DC account, because if they won big we'd potentially want to acces that money. I would share equally if one child one a large amount and I had more then one child. It's not a lottery in that sense. The account is to provide for the chidrlem and presumably you want to provide for them equally.

I think if you put them in your kids’ names then the money should go to them. So I would go 50:50. I wouldn’t take money for myself.

I'd even it out between the two of them. If I raise a child who complains they are 'only' given £500,0000 when they become an adult and resent their sibling having an equal share then I've done something wrong in the first place.