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??

MN is full of such piss poor, self righteous advice. You are the guardian of the money and can spend how you see fit for the welfare of the child until they are 18/16 dependent on circumstances. Be it housing, essential maintenance, whatever. A child needs a home.

The solicitors will have no issue with this. Also, you’re not even using it for the deposit - you have that. Self righteous, faux , internet lawyers could well do with stepping away from the computer and practising reading comprehension.

Withdraw it and set up a new home.

If you are a higher earner and have been hiding it from the tax man- you can expect them to want to take a closer look when they run audits.

Legally, if DD is under 16 and you are the person legally responsible for the bonds, you can withdraw the money and use it as you wish. It’s obvious that you’ve just used this as a way to invest more in bonds than you are legally entitled to. Not sure why you didn’t put one account in your name and one in your partner’s, as you talk about “we” and “our” income? Morally, the money belongs to DD, legally to you. Your call.

It doesn't. The money legally belongs to DD. She is the custodian of the money and has the right to remove it from the PB and use it to benefit DD. Using it for a sofa would not pass the threshold.

lets call it quits you aren’t winning this argument and the OP will do what she wants with the money as she can legally withdraw and use it to what she thinks benefits her daughter as the legal guardian of the money..

bye felicia!

83% think OP is being unreasonable to think she will get away with this, so I'd say the argument was already won. I'd take a good hard look at your morals and consider a different solicitor in future.

I'm very cynical about tax. Aren't you?

It doesn’t matter that 83% of the people thinks this she is being unreasonable because at the end of the day the OP is allowed to withdraw the money back into her own account. Once it’s in her account she can then use it for a purpose she believe benefits her 5 year old. There is no way to check on this as we all know…. So let her be and just get on with it.

also my solictors are fine thanks, reputable and know the law. If they are fine with it and no red flags raised.. then her doing this is a non issue.

Someone could gift you the money but it all needs to be above board and pass AML etc and whatever the tax implication is - with a child’s “gift” you’d be bypassing that. Maybe this is what your friend means.

If they are in her name you need her permission- it's her money.

You clearly don’t have PBs in your child’s name love.

Most of MN are hysterical over stuff like this. They think what is morally right is legally right. Often thinking their opinion overrides the law. It doesn’t. A vote where people think and speak without knowing what there are talking about - often hysterically does not win an argument.

I do find it a bit odd to save money for the child if you're then going to use it. You should have just saved the money in your own name if you see it as yours, assuming you put it all in.

There’s no legal right of a child under 16 to own or control the money in a PB; it is solely managed by the custodian. The custodian can withdraw at any time and use the money as they wish. As I said previously, it’s a moral argument not a legal one.

from NSI -
Not registered? You can easily withdraw money from yours or your child’s Premium Bonds without needing to create an online profile. All you need to do is fill out a quick online form. Make sure you have your account details to hand.
Cash in your Premium Bonds
Cash in a child’s Premium Bonds
Please note: you must be the person responsible for the child’s Premium Bonds in order to withdraw them or close the account.
Want to cash in specific Bonds?
If you’d like to take money out of Premium Bonds, but make sure that certain Bonds are kept in the draw, you can do this online using a form.

I’d trust the advice of a financial services provider over a random on t’internet.
https://www.onefamily.com/junior-isa/junior-isas-vs-premium-bonds/

• “Junior ISAs and premium bonds can be given as gifts

Both JISAs and premium bonds can be gifted. This means parents can open a JISA or buy some premium bonds in the child’s name. This means only the child will be able to take money out of their JISA (when they reach 18). However, despite the child “owning” premium bonds in their name, their parent or legal guardian will be responsible for them until the child reaches 16, so they can sell the bonds at any time.”

Absolutely correct, Mrs Sunshine is just a morally self righteous person who does not know how premium bonds works for parents and their kids….legally of course.

her morals supersede her knowledge of what is legal

I really don't know what you mean by this comment.

I would rather pay a little more in tax if it funds decent services and a decent society.

I don't have any time for tax evasion/ tax avoidance.

I also think the richest in society should be paying more in tax. "From each according to his ability, to each according to his needs"

She’s 5 🙄

What does DD mean ?

Would it have to be written permission? Could be difficult!

😂😂

Of course not, it’s yr dd money, u use tax advantages, u would need to explain to lender where the money came from.

Another person who has absolutely no clue and does not have first hand experience of the matter.

When you apply for universal credit all premium bonds under the name of your children are taken into account under the savings threshold as parents have access to it all. Therefore, it seems the government consider it to be the parent's money.

The law is that it’s the child’s money which may be spent on her behalf by someone with parental responsibility. If it’s cashed in, it’s still the child’s. The only question is, is spending the money on stamp duty and renovations to the benefit of the child legally? I don’t know the answer to that,

There are some people on Mumsnet that consider ISAs to be morally wrong because they are a legal form of tax avoidance.

Premium Bonds probably also fail their moral tests because the winnings are tax free.

We've now got people posting Karl Marx quotes, so we're only a short hop from 'property is theft'.

I don't think you can rely upon these people to provide objective opinions on the accumulation of capital via saving and the subsequent purchase of property.

Check the ns&I website to be sure, but as parent/guardian you control the money and can cash the bonds in. Then use the money in your daughter's best interests which is yo have a decent home. I don't know why you were told that it is illegal, it might be worth asking where your informant got that information from for your own peace of mind, but I have never heard of this before.