Isas and Money Ownership

[Abz1982]

Person A has 10k
Person A takes out an Isa in the name of Person B - without B's permission and signature etc.

Who does the money belong to legally?? A or B

 

[Baby France]

B? Is that not there way of donating the money?

My mum opened an account for the kids when they were born and pays into it. They are too young and at the minute, she is the one who controls how much is in there etc...

BUT if they were over the age of 18, first of all, is it legal that they can open an account in an adults name without adults permission. Does that not amount to fraud?

I would say person B if they are over 18 and person A on behalf of person B if under 18.

 

[special_kala]

Id say B its in their name and they "signed" it so unless the A is willing to admit to fraud then its Bs

 

[Abz1982]

cheers.................thats what I thought.............my dad put 10k in an isa in my mums name.........she was saying she doesn't she just take it out to lend to me for the house, since she figures legally its hers. haha.

 

[FlowerFairy]

Investing money into a ISA in someone else name is fraud. An individual can only have one ISA to invest in per tax year and only one allowance. If you invest into an ISA in your own name and in someone else's then you've actually had 2 Tax free allowances and could be made to pay the tax on it of they catch them .
The money belongs to person B as it is in their name and if they person A said it was theirs they could get into a lot of trouble so if Person B spent that money they'd be hard pressed to get into bother x

 

[Foogirl]

This might be slightly more complicated if they are married. Even though the account is in her name, is it not the case it counts as marital property?

I do agree with the fraud aspect of it. And it's also important your mum knows she is a party to it, should it ever come to light. The fact she didn't do it isn't a defence in the eyes of the law, the fact she hasn't reported or closed the account means she is implicated in the wrongdoing.

 

[FlowerFairy]

This might be slightly more complicated if they are married. Even though the account is in her name, is it not the case it counts as marital property?

I do agree with the fraud aspect of it. And it's also important your mum knows she is a party to it, should it ever come to light. The fact she didn't do it isn't a defence in the eyes of the law, the fact she hasn't reported or closed the account means she is implicated in the wrongdoing.

Hmmm As far as I know becuse ISA's are specifically for individuals I dont think being married would cut it but I've been out of work for 12 months now ( Was a Savings and Investment Adviser) so not just sure!

 

[lilyd]

It probably would be classed as a marital asset if they were separating, but whilst they are together, the money belongs to person b to do what they want with it.

The alternative is person a admits fraud, which I doubt they would want to do!

How did your mum find out? x

 

[Foogirl]

That's what I was getting at Lily.