Joint child's savings account - what to do

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My ex and I have a joint savings account in trust for dc. What should we do with this now we have split? Our thoughts were to split it and open our own separate savings accounts for dc. Does this seem like the sensible option?

In Trust in what way?

Is it not in the child's name but you run the account for them?

I would agree to leave the joint account where it is and if either of you wish to save more you can open a new account(s).

Savings in childs name but account being managed by us jointly (both named as trustees on account and can withdraw money, which obviously has to be for the child's benefit). For various reasons the financial association between us needs to be broken so we need to decide how that will happen.

Sorry, the account is actually in our joint names but it is an account set up for the child, we are trustees and manage the account but the money belongs to dc.

For various reasons the financial association between us needs to be broken

So if that includes the childs account then all you can do is ask bank if you can separate it into one account each. If you have to do a split, what is the question?

I had similar for my DC. We both knew I was better with money so I kept what was in the pot already and he says he’s opened his own account.

OK so as Trustees, where has the money come from? Is it a Bare Trust - does your child get access to the funds at 18?

From what you have said, I would assume Bare, but it could matter.

I think this depends more on source of funds. If it’s all from you as parents then parental settlement rules apply and I’d split. If it’s another source, it may influence, but PS rules aren’t relevant.

This isn’t an opinion piece, there are potentially legal implications.

Bare trust. Money from a variety of sources, mostly relatives.

I’d be tempted for one of you to resign then. It is then quite literally a question of trust, does your ex trust you to maintain the trust without spending? If that’s not the case, then you could resign and he does it. I would suggest the resident parent (if that’s the correct term) should remain Trustee and possibly a GP or sibling.
I’d also consider if an investment would be better with the timescales involved and that would be better with bigger funds.

All that said if it’s minimal amounts then perhaps close, split and be done with it.

I am resident parent but ex won't agree to me taking over whole amount and I won't agree to him. We have different views of how best to manage this for dc. Amount is circa 10k total, not megabucks but a decent amount. Given roughly equally from both sets of relatives.

I think splitting it equally is probably the only option. I just wondered if I was missing anything but the more I have spoken to him about it the more I realise that splitting is the only thing we can logically do.

Differing views? Spending or investment related?

To be honest, you’ve got your answer. If you can’t agree, that forces your hand.

There are a lot of complications which I don't want to get into because it's outing but yes I think that is going to be what will have to do. I wasn't sure of his views when I posted this thread but on speaking to him I can't see any other option.

I've recently dealt with this type of account with DD, the issue we had was that her largely absent father was a joint trustee on the account so nothing could be done without his signature. With hindsight it should never have been set up that way in the first place, but obviously I didn't anticipate a divorce when dd was a baby.

I left it alone, with both of us still paying in until she reached 18, it's a fairly substantial amount of money but with interest rates so low and wanting as low risk investment as possible anyway it was preferable to leave it be. I certainly wouldn't have wanted him to take control of it.

DD opened a separate account in the meantime in her own name.

When dd turned 18 she asked her father to transfer it into her name, thankfully the bank was very helpful and allowed us to sign the paperwork separately, which he did eventually . So she now has control of the account, with my guidance.

Can you agree on a savings account you are both happy with that it could be left in until 18?

I would try to do that now if you're still communicating reasonable well. In my opinion a child savings account of that level of value should be managed conservatively .