I have two online savings accounts, one for each of my children, but which are entirely in my name. The children are not old enough to manage their own accounts, if indeed to have an account in their own name.
Each account has in the order of £1200 in it, which has been built up from birthday money, premuim bond winnings (£1000 won by one, lucky so & so, but shared between them), pocket money from relatives and the £5 a month I put in.
Would these accounts be deemed to be my assets in the case of an IVA, and if so should I transfer the funds to another family member before looking into applying for an IVA? Obviously I don't want my kids to lose their savings because of me.
Don't worry about these accounts - so long as you can demonstrate that they hold the children's money they should be exempted from the IVA. I think you would be wise to transfer the money into accounts in their own names, with you acting merely as a Trustee. Your bank ought to be able to help with this - or you could open new accounts with a bank to whom you do not have any debts just to be on the safe side.
Yes - I agree but safer if you put them in your children's names.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Hi
There is always the danger of banks using this money to offset one of your debts with them prior to your IVA being in place.
Best to play safe and move the money into the childrens, or a third party name only.
Regards
It's always worth getting savings accounts set up for your children in their own names. You can always act as a trustee for the account but when it's in their name, you have the advantage of tax savings on the interest. Thankfully the little blighters are still deemed too young to pay there way with the Goverment [:D]
Thank you each for your prompt and very helpful responses.
At the moment to withdraw the money I have to transfer it to my own personal account, which is currently overdrawn and will continue to be when I start the IVA application process, and will then have to withdraw/transfer it from their. Will this raise questions in the IVA process? Would I be better seeing if I can transfer it directly to someone elses account or, if I do it before I've started any IVA application process, is it likely to be "water under the bridge"?
My parents opened an account for my daughter when she was a baby, and this was always in her name, but she wasn't allowed to make any withdrawals. My parents were the ones who did all the financial stuff until she became of age.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
