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??

come on stop it… lol

Okaaaay - if you say so - it must be true

You are allowed to hold the child’s winnings (and other property) in your own name but it is held for the benefit of the child (see s3(3) children act). So yes you could spend it for their benefit but not yours

So you're happy to illegally appropriate money belonging to your child because you feel secure in the knowledge that they probably won't take legal action against you as adults, even if they don't feel good about you taking their money. Yikes. I think this goes back to our differing views on what covers the bare minimum standards for parents...

How does one check you spent the money on a toy for them or a purse for you?

All I’m saying is that I don’t have a problem that she wants to buy a house for her family and use that £30k to do so…. It’s all subjective and that’s just my opinion.

Ive also done it and my solicitors said it was not problem.

They rarely do, hence why it's normally hard to police and many adult children later find out that their parents frittered away savings meant for them, either saved by the parents or by relatives.

£30k put into buying a house for yourself is much easier to track.

I don't understand - my son has premium bonds I have an 'adults' account with 0 in it and any prizes go to his account? It's his money.
Sounds like you have tried to evade the £50,000 per person rule and now you want to take back the money. In law you have gifted it and don't have any right to spend it. When your bank ask for evidence of the source of your deposit you may have an issue.

It’s irrelevant who’s name is on the account. If it’s not yours, then it’s not your money.

The maximum amount of premium bonds you can have is £50k. By having your dd’s winnings paid straight into your bank account, it sounds as if you are trying to circumnavigate this £50k maximum to your benefit.

In my opinion, taking her winnings is immoral! You are basically stealing from your child.

Also, I’m sure you can’t cash out her premium bonds anyway, they are in her name until she is 18 and chooses what she wants to do with them. I think all premium bonds for minors should have their winnings paid back into their premium bond account.

Oh gosh another stupid last paragraph post about it being not possible to withdraw your child’s premium bonds under the age of 16.

i just can’t….

What? You’d get taxed on the interest earned on £30k 🤦🏻‍♀️ OP might well have been better off putting it in a savings account and getting interest (which she’d pay tax on) rather than hoping for winnings on premium bonds, but that’s her choice. The tax man is not missing out, especially as this option is legal and in the t&cs of children’s premium bonds.

You can "cash them out".

This

the kid is 5 ffs so it’s the parents money 🥴 good luck with the new house purchase

Best check with your mortgage company. As your child's guardian you are allowed to sell the bonds, but it remains the child's money, not yours. NS&I 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". I should think it is like having power of attorney for an older relative; you are legally able to move their money around but it doesn't mean you can appropriate it for yourself.

I can’t believe you didn’t put that £30K into your partner’s name when you were allowed to? Or did you want sole control of it? Just totally bizarre you’d open up an account for your child, put the £30K in there when you have a partner and you knew you would have needed the money for the house costs. I’d be more understanding if you were single. I get the avoiding tax thing (why give this government any more money when you don’t need to?).

Can we not speculate that she has a DH or partner….

Just google it and I stand corrected, you can cash out her premium bonds. Doesn’t make it right though.

Yes exactly we are talking about the legality of it not the morality

Is this correct? (posted above?) NS&I 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.

Why not? It was OP's money to start with! It will be used to provide a better house for a 5 year old child to live in, that's definitely a benefit to the child who will never know anything about it anyway. It's all perfectly legal, no idea why so many people are frothing about it.

Yep exactly….

Then you are committing tax fraud. If you have more savings than the £50k personal limit for premium bonds, you should be paying tax on the interest.

You are not committing fraud…. The parents are the legal guardian and they can legally do what they want with their money.

Premium bonds are tax free accounts……