Additional isa in other family members name?

willregan

I already have invested my cash isa for this year and i'm looking to start one in my mothers name by transferring the money across to her account, would this be legal to do so? Your feedback will be much appreciated!!

Thanks,

Will

Lokolo

If she opens it and she deposits the money yes. However at that point it is hers, not yours so she could choose to spend it

willregan

Lokolo wrote: »

If she opens it and she deposits the money yes. However at that point it is hers, not yours so she could choose to spend it

Thanks for your reply, If i transfer the funds to her account and she uses the money for the isa will this cause complications when it comes to her giving me the money back? Hopefully she won't decide to go on a shopping spree!!!

Lokolo

Yes as the moneys hers not yours. She can choose not to give it back to you.

Aegis

The only issues that could arise other than the one regarding ownership are ones which come into play under inheritance tax laws. The gifting of money can end up being part-taxable under IHT laws if the transfer takes place less than 7 years before the family member in question dies.

A slightly morbid issue, I know, but it's something to be aware of if you're planning on letting your mother have money of yours to put into an ISA each year.

RayWolfe

Be very careful doing this. As others have said the money becomes your mothers with all the implications around death, care home fees and mental acuity. However more important, is the fact that this is a clear case of tax evasion. Not only illegal but immoral.
This is not like transfers between spouses which is encouraged and perfectly legal. Take care.