Told I can’t use this premium bonds money for our house deposit as it’s illegal?

[kiav]

We have two premium bonds accounts. One is in my name and one is in DD’s name. We have 50k in mine and 30k in DD’s.

we are now in a position to buy a home. We will need the 50k for a deposit and we also need the 30k for things like stamp duty, new sofa, to do a small bit of work that needs doing in the downstairs etc.

I have been told by a friend it’s illegal to use Dd’s 30k for this? This is money we have saved from our income but now our circumstances have changed we need it. Surely premium bonds should tell you this before you invest??

This thread highlights the difference between what is legal and morally right.
I have an acquaintance who has done exactly this scenario.
She inherited a substantial sum of money and place £50k in her own and each of her 2 children's names.
She told the kids it's not their money, they don't benefit from the prizes and she fully intends to withdraw the kids funds just before they can take control.
It's already damaging her relationship with her children, I dread to think what things will be like between them as adults.
But legally she's doing nothing wrong.
That said the ops child is probably young enough to never know.

They will want to see the statements you're right. And if one is in their child's name there will be questions.

That article has absolutely nothing to do with what is being discussed. That's concerned with trustees for wills. I asked for something specifically about the actual thing under discussion.

Unless, as was blatently obvious, you have no idea what you are going on about, do you?

🤔

HMRC would never send you a bill for tax avoidance because they can't. Tax avoidance is perfectly legal in the UK. Putting 50k into premium bonds rather than a standard savings account is tax avoidance and it's absolutely ok.

It's amazing how confidently people who don't actually know what they're talking about can state things. I'm going to drop out.

"yes your daughter could pursue you for return of the funds later technically."

Nope.

More utter nonsense.

They’ll ask for the winnings back?!

🤣🤣🤣🤣🤣

this thread is insane.

They. Pay. The. Winnings. To. OP. In. The. First. Place.

The benefit of giving her a secure home outweighs that guilt.

It's her money and as a child it's tax free. If you use it you will owe a lot of money in tax.

I know that! I have premium bonds myself!

OP said she took the winnings from the bonds in her child's name. Which are tax free. So she is gaining tax free winnings. And denying her child the winnings.

What has it got to do with your friend? just take the money out and use it. Why was she even invovled?

Not true.

No she won't. There would be no tax payable.

Mumsnet talks quite frequently about how DH/DW or DPs share their income with many people saying it 'all goes in one pot'. I include our children in that. When my son wins on premium bonds it is paid into my account as I am the legal account holder because he is a minor and those winnings 'go in the pot' with our incomes to pay for food, bills, holidays, it is family money which we all benefit from and he is contributing to it.

Seriously, did you pass Equities and Trusts? It's the same law.

Your mistake OP was posting on here.

just do what you were going to do. If your solicitor has an issue, they’ll tell you. You can evidence the source of the funds and show that they have not come from ML. If HMRC think tax is due they’ll get in touch. This place is ludicrous sometimes. And don’t tell any more “friends” your plans.

I'm actually howling at the comments on this thread.....

I literally can't take this thread seriously.....................

Yet I'm addicted to read more insane comments that are being bandied about......

Trusts/wills..................like what on EARTH!!

I hate to point out the bleedin' obvious - but it is the OP's money. It doesn't make a jittedy jottedy bit of difference whether the money saved was under her husband's name (which it could have been - up to another £50k) or one of her children's names. It's all family money.

That's how a lot of families work.

The pearl clutching and general near sightedness on this thread is totally astounding.

And to the poster who 'works in the industry' - bully for you. Tell us what your incredibly important job is. No - hang on - don't. Because you're chatting sh**

Even if tax were due, the tax on a few years of interest on £30k is unlikely to be “a lot”.

Seriously, stop digging.

Thank you someone who isn't insane!!

You want a new sofa?

Brilliant - someone with absolute certainty on this issue! Can you please point me at any evidence online which suggests you can spend money not in trust in your kid's name however you like? I'm not disputing, just would like to see any evidence at all.

Can you please provide me evidence that you are not allowed to withdraw your child's premium bonds (which we've already seen that is untrue with evidence) and spend it on behalf the child?

OP, you created a trust by putting the money in DD's name. You had the max PBs in your personal capacity, and so for the other £30k you were acting as trustee for your DD who was named on the account. A trust doesn't have to have a written deed (unless it relates to land) and can be created by actions. What you've got is a bare trust, an outright gift of funds for DD with her as beneficiary and you as trustee. In a bare trust the beneficiary is absolutely entitled to the trust fund, but can't call on it until 18. There's a lot of stuff on this thread that's not seeing the legal position, or otherwise saying who cares. But I think perhaps what you need to do is ask a solicitor to draft a short document to record the fact that £30k towards the house purchase (and other costs) came from your DD's trust.. Those funds are hers legally but you have acted for her benefit using them to provide a home for you both.

Yes, that would be entirely legal, but instead they wanted to go over their premium bond limit by putting money in their kid's name which they fully intended to use themselves for their own purposes.

So my question, which is very simple, are there any limits on what you can spend your kid's money on? Lots of people have said with certainty, you can spend it on what you like, but no one has provided a shred of evidence for it, and I can't find a source which says either way.

This is what the NS&I terms and conditions say:

""Any Bonds bought and any prizes paid in relation to them will belong to the child. The parent or guardian will have responsibility for managing the Bonds and any prizes paid for the child’s benefit. The child will then begin to manage their own Bonds when they reach the age of 16""

However, you are also allowed to cash in the bonds any time you like, even your kids.