When do children own money in their own right?

[namechangecity]

Does anyone know at what age childrens money is treated as being their money rather than their parents? Currently my childrens' bank accounts are set up as "my name" for "their name"and I assume that if I was run over by a bus tomorrow their money would be treated as forming part of my estate even though it is not mine it has been collected from various gifts etc over the years. Is the money always treated as mine until they are 18 or are their accounts which can be held in their name without my name being on the account?

It's always been theirs it's just you are trustee as they weren't old enough. If I recall correctly its 12 when they are able to sign in their own right.

No, the money is theirs.

The account will be in their name with a note on the account that you are signatory (probably due to their young age) for making withdrawals.

If you we're to die this money would not be part of your estate as you are only a signatory, not the account holder.

Many accounts will allow your child to become signatory (and have control of the account at around the age of seven); that's what happened with my DDs, but you can decide whether to hand the control over or stay as a trustee past that age.

N.B. if YOU gave the children the money the tax man will regard the interest as yours for the purposes of tax once it exceeds £100 per annum. It would then be taxed at your highest marginal rate.
Gifts from other people do not count and interest simply counts towards the childrens personal allowance (R85 form gets the interest paid gross).

Similar to this - if kids inherit money - I know I can put it in a savings account in their name - is there any other way of investing it for them so that they get more than the tiny interest rates on savings accounts ?

Of course :-) As Trustee of the money you have the legal right to invest the money as if it were your own (ie to best effect). You have to take advice (unless it is prohibative to do so), but basically every type of investment is open to you. However you must invest wisely "as a prudent business man might" and balance the best returns with the need to not lose money.

Are we sure about this? the children's accounts i have say my name for their name so I thought this meant the money was mine (which is not what I wanted). I have kept a note of where all the money has come from as 90% of it was not from me. It states above: "Many accounts will allow your child to become signatory (and have control of the account at around the age of seven); that's what happened with my DDs, but you can decide whether to hand the control over or stay as a trustee past that age." Can anyone link me to one such account please - I then assume my name is not on the account at all which I think is preferable. Many thanks.

you're worrying too much namechangecity. If it is 'your name' for 'their name' on the account this clearly indicates that you hare acting as trustee and it wouldn't be in your estate.

great - thanks. I am a natural worrier.

Think it depends exactly on the account. I recently got my Mum to sign over an account she opened for me when I was born. (I'm nearly 30) Although it listed her as a trustee she had to sign it over. It was a bit complicated as the bank it was with no longer exists, and we have both married so have different names.