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??

the OP never actually gifted it to her child and it was just done to get around the 50k cap

When has the OP said this? she said these were savings for her DD

Look we all know what the OP has done here.

she opened 2 accounts which she can legally do. One for her maxed out and one for her daughter at £30k. The 30k savings is not technically her daughters per say (more as a way to save additional money tax free)

the question is can she take the savings out of her daughters legally- yes she can based on the screen shots I showed.

what she then does with the money is morally right or not right but entirely up to her

As others have said you have tried to get around the 50k limit on buying premium bonds. You cannot buy more than 50k as they are a type of govt bond and so you brought more in your daughter name. I understand why you were tempted to do that but not sure where it leaves you legally

Just use it, she will benefit

Anyway OP….

Just use it….
Dont talk about it with friends….
Dont’t post it on the net…. Although it has been fun to read some insane comments on here

Because under the age of 18, the person responsible for paying for clothes, food and housing is the parent, not the child.

Yes exactly so she can do what she thinks is best for her child and that’s buying a roof over their heads

You tried to beat the system and buy more premium bonds than you were allowed. It’s her money now.

No reasonable or sane person would say that buying a house for your parents is the best use of a child's money. If the child's money was used to buy a share in the house that belonged to them, that could potentially be seen in their best interests as they could live there until 18 then withdraw that money +equity from the sale of the house when they become an adult.

The OP doesn't want to do that, she wants to use the child's money to buy a house for herself and her husband, and use the house to fulfil her legal obligation to house her own child.

I’d use it but morally I’d try to save something for your DD if you’re not doing so already, doesn’t have to be a big amount.

I feel like we are going around in circles.

the parent can act on the child behalf and withdraw the cash. Legally she is allowed to do that.

what she then spends it is a moral question.
the child is 5….. and we all know that £30k wasn’t directly for her daughter to have sit in the account… we all know that…don’t we

When you gave the money to your child what was your intention OP?

It doesn’t really matter what the intention is… because at the end of the day…. We know that she wants to use the money to pay for stamp duty and a sofa

Yes, legally she can withdraw the funds, as the trustee of the account, to use it in her daughter's best interests. If no-one is looking at the documents for the source of funds, OP could in theory spend it on anything. It's not legal to just use money for whatever you want when it doesn't belong to you, but if no-one knows she's done it then not much will be done- unless the daughter at some point take her to court for misusing her money.

The question is, if her solicitors then have sight of that money, will they question why she is using her daughter's money to buy herself a house and class this as money-laundering.

I would say the answer is yes, they probably will. You are supposed to use your own money to pay expenses for buying a home, unless you are expressly gifted that money by a consenting adult.

If you are the one managing the account then you can withdraw or close the account

Like I said we have done this in the past (we gave full details of where all the money was coming from) and our solicitors said it was fine and not seen as money launderings/no red flags. If it was an issue our transaction would not have gone through.

I used to assess source of funds for a business and several other PP's on this thread do the same and have said they wouldn't allow this, as it appears that the money was fraudulently put in DD's name to avoid the £50k limit. It's not acceptable to use a child as a proxy "extra person" for financial benefit.

The other option is she really did intend the money for DD and now wants it back. That's also not acceptable.

Maybe your solicitors didn't care, but many would.

The financial illiteracy on this thread is shocking.
@MrsSunshine2b

Money laundering is not taking money from your child's account.

Educate yourself by doing some simple reading.

My solicitors are a reputable company and wouldn’t damage their reputation for doing something illegal…..

ofcourse they care….

but this is a non issue

Well yeah. But I'm presuming the idea was that was for her child's future not a fucking sofa

Thank you someone with sense

Money Laundering regulations and checks would be interested

Well like I said….. it’s really the parents money. The childs account was merely a holding account to gain an additional tax free account…..

Source of wealth: my child's premium bonds invested in from an inheritance

Of course. I don't deny that. OP's pretending it's for her child"