Money problems - can my creditors raid my children's accounts I'm trustee of

[Penelope8]

Hello, I wonder if anyone has any experience of this please. I'm in financial difficulties and am in the process of setting up a debt repayment plan with Step Change. I arranged an ISA for my daughter through my Halifax bank (money coming from her grandma) and also have a Personal Investment Plan for my eldest daughter (an inheritance) through Halifax (Scottish Widows). Both are NOT my money as they are my daughters (both under 5) and in their names. I'm just the trustees. I'm concerned that Halifax will offset these accounts against my debts even tho its not my money. I'm going to get in touch with Citizens Advice but would appreciate any advice if anyone has any experience of this. I don't want to move the accounts esp the Personal Investment Plan as it may have penalties and I don't want to affect my daughter's trust through my debt problems. Thank you for any advice / shared experiences, Penelope x

I'd be very surprised if they could. Like you say its their money. If they thought you were hiding your money in their accounts they might be funny but as its from a grandparent and an inheritance then you can prove that's not the case.

I hate to say this, but I think they can. I had a friend who had her daughter's savings account raided. Also a newly married friend found that her money disappeared! I think they take and ask questions later and you have to fight to get it back.

I also think that you'll find your DCs' accounts are technically 'yours' even if they are in the child's name. Definitely worth checking with CAB.

I understood they worked like joint accounts for some purposes. So I think they could take the money but not sure.