Managing Your Money 

Q&A: Savings accounts for children

Q&A: Savings accounts for children

Question: My mother has opened savings accounts for her six grandchildren who range in age from four to 17 years. She has been diagnosed with dementia and my sister and I now have power of attorney. When it comes to the accounts for her grandchildren, are these considered to be the children’s, ie the money is not included in her estate, even where she is also named on the account? 

We have a second question prompted by the fact that having looked over the accounts, we think the money could be put to better use elsewhere either in a higher-paying account or even bonds. If we transfer all the money say into a single savings account, will it still be considered to be the children’s? We suspect we won’t be able to open a single account in six names. 

There is another reason why we wish to transfer the money: the amounts in the accounts vary considerably yet her stated intention was to give each child the same amount in a lump sum. By pooling the money we could, eventually, share the cash out evenly between them. But should we leave well alone and are we risking bringing the money back into the estate?

G Cameron

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