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??

For those claiming that the OP is being inconsiderate to her child for taking the money from her, I would imagine the child would far prefer to grow up in the security of a house that her parents own rather than all of the downsides that come with living in a rented property (e.g. having to move every so often when the landlord decides to selll up). They'll also probably benefit from the house in the future when the OP passes away. It's definitely not 'stealing' from the child.

Exactly this is the correct response but people really don’t understand there is no legal ramifications for her (the parent) if she chooses to spend all the money on Prosecco.

its just morally/ethically debatable

the OP will not be going to jail or paying a fine as this is not FRAUD

https://www.nsandi.com/products/premium-bonds it on this page at the very bottom "Please make sure you’ve read our current customer agreement (terms and conditions) before applying."

Well you’ll know that you can cash them in then!

Questionable as you clearly don’t know what you signed up to.. and the legal implications of it

If the parents lost their jobs and spent their own savings and had to go onto UC, would the DWP consider the £30k to be part of the parents' assets and therefore refuse to grant UC? I suspect they would - in which case the parents would surely have to take the money out. So then surely the parents can take it out any time?

She is entirely correct. The terms and conditions quoted above explain that you can withdraw money for the benefit of the child (not yourself). Even if they did not, that is the standard legal position (see s3(3) Children Act 1989).

There are many situations in which people have control over the management of money that belongs to other people (power of attorney, trustees etc). The fact that they can mange that money does not mean that they can (legally) do what they want with it or treat it as theirs. The same applies here.

Of course you can use premium bonds to pay for whatever you like... your own. Not someone else's

Well clearly you haven’t?!

No they would not. https://www.gov.uk/guidance/universal-credit-money-savings-and-investments#childrens-savings

The government understand that money in the child's name belongs to the child and not the parents.

Though no doubt there are measures to avoid this being used fraudulantly)

Yes but you would determining what is for the benefit of the child as you control it… so therefore it’s a matter of opinion

OP just use it for the house… no one but various mumsnetters is going to bat an eyelid…. Not even solicitors!

I HAVEN'T EVER SAID YOU CAN'T CASH IN PREMIUM BONDS

Yes.

We are agreeing. I don't know why you're having a go at me. However you do agree when signing up to use it for the benefit of the child. Buying a sofa isn't.

We are going round in circles here. As explained above it is not a matter of opinion. There are centuries of case law on when a child's assets can be used for their benefit. This problem is essentially the foundation of wardship - it is ancient. Were there to be a dispute a judge would give a determination of whether the money had been used to benefit the child or not.

Of course there is very unlikely to be a case here - it's quite easy to take money back from a 5 yr old - but that does not mean it is legal for the parents to simply do as they wish. Nor does it mean that the parents' view on what benefits the child determines their legal obligations.

Exactly that.

Funny how the vociferous (and rude) poster is also the one who can't comprehend a simple sentence.

Yes if I were POA for my mum and she was living with me I would have a hard time justifying buying a sofa for the whole family to use with her money. If it were a specially adapted sofa that my mum needed to be able to sit down easily then that is a different matter.

Good we agree, however you might not agree that a sofa is benefitting the child, I’m indifferent to it and the OP thinks it’s benefitting her child. So 3 different opinions. The OP in the end won’t be going to jail for this.

Exactly. PP's seem confused about the difference between behaviour that is legal, and behaviour that is easy to get away with.

Look we all know she will do it and it will be fine :)

It is fine, my solicitors did not flag this was an issue

I'm not sure any of these people have premium bonds, just withdraw it to your account it's fine

You expect us to believe that you said to your solicitors, "This money is in my child's name, but it isn't really for my child, it's just so I can avoid some tax, so I'm using it to buy myself a nice house which my child will not have any ownership of," and the solicitors said, "No problem, I'll just sign off to say that this money which isn't yours is yours, congrats on the tax avoidance."?

I don't think she'll go to jail either but she's breaking the terms and conditions that she signed up for

Exactly this, showed a screenshot of the account name and funds to our solicitors… not a problem and nothing flagged, as I have nothing to hide. you don’t have to believe me either.