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??

Of for goodness sake I just sent a screenshot of the account with my child’s name and the funds… I didn’t say all the garbage you just spouted…. Solicitor said fine and house sale went through

But you

Have missed the point that it goes into the parents account.

look at that all said without the need for caps, which makes you look like the five year old in the scenario!

I won’t engage with someone so ridiculous that they use caps lock in that manner.

embarrassing for you!

They can "cash them out" but it's still the child's money, not theirs. They gifted it to her when they put it in her name. That is the legal position.

And, taking the tax free winnings and keeping them for themselves is tax evasion/fraud.

But no, no-one is getting locked up or paying a fine (no-one has suggested that at all). But if this money needs to be used for part of the house purchase that goes via the solicitor (the purchase itself, stamp duty etc) then the source will be looked into by the solicitor and it's very likely the solicitor will say it cannot be used (not because it IS money laundering, again, no-one has said that) but because the solicitor needs to check the source under anti money laundering rules.

Bottom line is - put money in your kids' names, it belongs to them. You may control it, move it, invest, cash it, etc, but it still belongs to them.

I have read so much utter nonsense on this thread 🙄

OP, I’m sorry your circumstances have changed such that your saving plans made in good faith need adjusting. I hope you both enjoy your lovely home (in a great school catchment area with nice neighbours and wonderful happy memories of growing up there etc. Oh look at the potential ways a move could benefit your child!).

All these people chuntering on that the money belongs to the child would no doubt use their child’s money should it be accessible to them if it meant the difference between putting food in mouths and roofs over heads, and they’d be lying if they said otherwise because it’s bloody obvious how doing that is in the child’s best interests. I cannot believe the crap people have been coming out with 🤦🏻‍♀️

What’s also clear is that anyone who sets up a savings pot for their kids looks at the options available to them, and one of those considerations is can I take the money back out if I need it. With PB’s, you sacrifice an interest payment for the chance to win big or get nothing, but you can also take your money back. Behold the rules. The point is, most parents want to provide for their children in the best way they are able. For some, it means giving them some money you’ve saved to them at a future date and for others it means giving them a “comfortable” childhood today as your means allow. It is fine to try to do the former and then later decide to do the later. If you pick the right savings pot option for you, the Rules allow you to do it. Hence PBs over junior ISA seems to have been a great shout by the OP and good for them.

No-one has suggested that's not the case, only that the solicitor may question, and may say it can't be used. If it's part of the house purchase.

What I’m trying to explain is that from the solicitors perspective it’s a non issue… I have been through this already and it was a non issue!

Rubbish!!

I haven't missed the point they go into the parents account. I know they do as I have some. I cashed some out to pay for my child to go to the aquarium and the zoo

Nope. DWP would consider that money as belonging to the child, so wouldn’t count towards asset threshold for UC.

That one anecdote. I have one about money from ex being questioned. And I know the law.

If you die the money in the PB account is still your child's. A sofa wouldn't be

Exactly this you are using the cash as you see fit and I can tell you I do not have a problem with you doing that in the slightest….

That’s what the OP is doing for her family she and her daughter get to enjoy it

Jesus my solicitors clearly know the law too 🤓

Another scenario: parents die and guardians have responsibility for the children. Can they take out the funds and use them like this?

Who are the guardians in this scenario?

Nope. If the account is in a child's name you can't access it until they are 18

YES YOU CAN

@ZarZarGabor has it right

For a sofa ??

i don’t know if you are being serious or funny.

but I’m howling

To pay for the SDLT etc to buy a house. Or to pay towards the deposit.

Guardians are whoever are appointed guardians in the will

@kiav this is one of the reasons I save money for my kids in premium bonds in their names instead of an account which only they can access - because I have the option to take it out when I want should I need to. I don't plan to, and having it in their names means I'm not tempted to, but we did have a cash flow situation a while ago while we were doing major renovations and I took out a chunk of their premium bonds savings for that. I paid it back in a few months later, but there is absolutely nothing stopping you withdrawing the money if you're the one who set up the account.

I’ve got to say this to you… in the same way you speak to others!

THE ROOF OVER THE CHILDS HEAD WOULD VE THOUGH!!!

GET IT???

So reasonable!! And no HMRC or solicitors and no arrests?

if only people knew!