Premium bonds £120k Split between Family of 4 ?

dorsetjohn_3

Lokolo wrote: »

£30,000 over 10 years you have:

1 in 5,401 in winning at least £1mil

x4 means you've got ~ 1/1350 in 10 years of one of you 4 winning £1mil.

But yeh I can see your point, you have £120k, where do you put it? I would go splash it on something you've wanted to do tbh. I'm only saving so I can have m y own businsess when I am older.

To be honest , the money is from a house sale and need it to purchase another house in the future . Would love to put it on one hand of blackjack in vegas though !

Am I right in thinking that if someone dies the first £250k of their estate is exempt from Inherit. Tax

Robert_Sterling_3

dorsetjohn wrote: »

Just wondering once you cash the money in how do you put it back into your account if national savings issue the cheque in my childrens name

You are right to be worried.:eek:

dorsetjohn_3

Robert_Sterling wrote: »

You are right to be worried.:eek:

Was that a joke , regarding my kids having the cheque in their names ? !!

Hungerdunger

dorsetjohn wrote: »

The interest on 120K internet easy access account is approx £2800
Would it not be better to take a punt on premium bonds for a year ?

If you can afford to lose approx £2800 each year the money is invested in Premium Bonds then go ahead. But you really should spare a few minutes to read up about PBs here. One of the conclusions is:

Yet for those who like a flutter, as Premium Bonds do protect your cash, it's fine to put a non-significant portion of your money in them, more for fun than returns.

(My italics).

As a matter of interest, have you decided what would happen in the unlikely event that your son or daughter won a significant amount on their bonds? Would they keep it all? Would it be shared between all four of you? What about if you won? Would you be willing to give half of it to your children?

dorsetjohn_3

Hungerdunger wrote: »

If you can afford to lose approx £2800 each year the money is invested in Premium Bonds then go ahead. But you really should spare a few minutes to read up about PBs here. One of the conclusions is:
(My italics).

As a matter of interest, have you decided what would happen in the unlikely event that your son or daughter won a significant amount on their bonds? Would they keep it all? Would it be shared between all four of you? What about if you won? Would you be willing to give half of it to your children?

With out the Synics responding please ............... We are a very close family and the Kids keeping the money is not an issue

Lokolo

dorsetjohn wrote: »

With out the Synics responding please ............... We are a very close family and the Kids keeping the money is not an issue

Unfortuantely John you will get a lot of it on here, a lot of people will say the worst, just to make sure you make the right decision! Its more of a safe bet that way.

bryanb

dorsetjohn wrote: »

With out the Synics responding please ............... We are a very close family and the Kids keeping the money is not an issue

Would you prefer everyone to say "What a wonderful idea"?

Hungerdunger

dorsetjohn wrote: »

With out the Synics responding please ............... We are a very close family and the Kids keeping the money is not an issue

You asked for advice - I gave it. I am being realistic, not Cynical (or even Synical). If you are planning to go ahead with this you really need to work out the rules - close family or not.

grnglide

dorsetjohn wrote: »

With out the Synics responding please ............... We are a very close family and the Kids keeping the money is not an issue

But is all this "gifting" not an attempt at tax evasion, albeit not a very profitable one?

If the money is yours and after the period of investment it is intended to be yours again (the children are expected to gift the money back, including winnings) then surely it is tax evasion pure and simple.

This is fine as long as you dont ask about it!

dorsetjohn_3

grnglide wrote: »

But is all this "gifting" not an attempt at tax evasion, albeit not a very profitable one?

If the money is yours and after the period of investment it is intended to be yours again (the children are expected to gift the money back, including winnings) then surely it is tax evasion pure and simple.

This is fine as long as you dont ask about it!

If its not illegal to gift each other cash , is there anyway you can get into trouble then ? I know what your saying though