A question about : Grandchild can't access her savings after parents separate
Sorry, title not very explicit.
My 11 year old grandaughter's savings are in a Barclays account which says Mrs A N Other re: Child Another. She has savings from Christmas and birthday money over the years and there should be a four figure sum in the account.
My son and his wife separated a few months ago and it's not been particularly amicable. My grandaughter now lives with her father and her mother is a few hours' drive away.
My grandaughter and my son would like the account to be either transferred into her name or into a similarly named account, i.e. Mr A N Other re: Child Another. My grandaughter wants to be able to access her money so that she can, if she wishes and with her father's blessing, buy things with the money she's previously been given.
The local bank have asked the mother to give her written permission for the account to be transferred. After several requests to comply from my son she eventually wrote a brief letter, gave no address, but stated the money could be transferred into another account and signed it. The bank asked if she would go into her local branch with ID before the change could be made. Bottom line is she wont do it. My son and grandaughter have also been made aware that there is no longer the four figure sum in the account, it's a few hundred pounds short and it's not that either of them have taken the money out.
The local bank say there is nothing they can do and even when the child reaches the age of 18 she still wont be able to access her money herself, it would have to be done by her mother.
Does this sound right?
Is there anything they can do?
If the local branch can't do anything, can they take it higher up and if so who would they escalate it to?
Best answers:
- Could be that it is a designated account, which would tally with this bit:
Quote: - The bank should be asked whether the account is being held in bare trust for the daughter.
The trouble is that where investment trusts etc make the difference between designated accounts and bare trusts quite clear, and there is a bare trust form to sign, banks often do not - indeed, there used to be an HMRC page which talked of a re account being a bare trust for a child.
Was there an R85 in place? If so, this is likely to show the way that beneficial ownership is regarded.
Even if the account had said "Mrs AB in trust for Miss AB", the bank is likely to have required the mother to sign over the account to the child before allowing the account to stand in the child's sole name when she reached 18.
Does the child have a CTF? ( I am aware that the child could not then access the money until she was 18 but the mother might be amenable to asking Barclays to transfer all the money in the account to a CTF).
The child is old enough now to have a pocket money account of her own - perhaps father and grandfather could start her off with Ј50 or so and future pocket money and birthday gifts could be paid into that.
Is the child in NI?
https://www.danskebank.co.uk/en-gb/P...s-account.aspx
https://www.moneysavingexpert.com/sav...vings-tax-free - How long ago was separation? When will the divorce proceed? This account can be dealt with at the time the rest of the finances are, and if she has taken/spent any of the money you can ask the court to take that amount out of her share of the joint assets.
- Thanks for the replies.
I'm not sure if it's a designated account or a bare trust account. I'll ask my son if he knows. As far as I know there is no R85, I remember mentioning that they should fill in these forms for their childrens' accounts but I don't think it was ever done.
The account definitely says "re: Miss AB" rather than "in trust for".
There is a Child Trust Fund although not with Barclays. I'll mention that to my son to see if it can be transferred.
I'll also mention about her starting up a new account for any future monetary gifts. We only have Barclays and HSBC branches where we live, plus the Post Office. Anything else has to be done online as we live fairly rural and it's about 50 miles or so to the nearest big town.
They're not in N.I.
The separation was 6 months ago. Divorce is a long way off. Wife wont admit to adultery, and to be honest my son can't afford it at the moment as he is off sick awaiting hospital appointment and treatment so on benefits for the time being. - The CTF should be transferable to the more flexible JISA from April this year, which may give the possibility of an account paying higher interest.
Who is the registered contact on the CTF?
re CTF https://www.gov.uk/child-trust-funds/overview
"When your child turns 16, you can no longer manage the account. Your child can take over by applying to the CTF provider. When they’re 18, they can take the money out." - The situation is difficult because even if it is a bare trust account, it is the mother who is the Trustee.
If the child is living with her father, it might be as well if the mother could be persuaded to transfer the cash remaining to the CTF and transfer the control of the CTF to the father - presumably you can help him with forms.
If this is done, you might watch out for a date for transfer to JISA and investigate whether a higher paying account might be available and assist father with the administration.
I get the impression that asking the mother what happened to the missing cash might be counter productive. - If your son is the custodial parent, then is she paying any maintenance? If not, and he is on benefits then I would see about getting some for the child's living costs. He could ask at the CAB.
And by no means put any new fresh money into the old accounts run by the mother. Keep a record of what the old balance was, and what the new one is etc.
I know she is being difficult, but it can be sorted out later when a divorce happens. And no one has to admit adultery any more. Unreasonable behaviour (which spending your child's money would be) can be a part of that. - Well if they are married and she is living with the other man, that is adultery right there, no further proof needed.
Has he actually been to the CAB yet?
The daughter can get a copy of her bank statement when she next visits if she likes, but really that is back burner stuff. He needs the CAB and some free legal advice. Otherwise, forget about the daughters bank accts until divorce. She will have to save up for expenses from here, or run them past her mother (in writing is best and keep copies) for her to hand over the money required. If she turns down legit expenses, then that can be used later when the divorce happens.
Basically your son and his daughter need to keep records.
Chances are she will bend eventually as I can't see any reason she would want to stay married to him in her current position of not needing him/anything from him. She will I assume eventually want out.
PS there are free mediation services so do get in touch with CAB. - As father is in poor health, living in the matrimonial home with a minor child and mother is adequately housed with a new partner, I doubt that he would be required to sell the matrimonial home or buy the wife out, certainly not for several years?
Does he have a pension? Does she?
He could do with some professional advice on his situation.
https://www.wikivorce.com/divorce/
You might find the above worth a browse?
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