Savings put into another person's name

Newly_retired

Sorry, apt, CAB are not allowed to give financial advice. However they can tell you how much capital you are allowed and still get benefits.

charlieboycat

Hungerdunger wrote: »

Why should the Council Tax payers in her area subsidise her rent just so that she can leave money to her children?

Couldn't agree more.

Biggles

If it's an investment bond which includes an element of life insurance, I believe it's excluded from the means test.

I assume it's not, in which case it sounds very dubious advice from the housing authority (in reality, I assume it's just from a member of staff, not official advice in writing?).

missile

apt wrote: »

That's very naive and probably poor advice missile. First it probably does not make sense to incur substantial financial penalties on the high income bond. Second what is proposed very likely comes under the heading of deliberate deprivation of assets and the income is likely to be included when assessing the mother-in-law's means-tested benefits. The OP and mother-in-law really do need expert advice on what is permissable and the financial and legal consequences of the various options.

I am not niave, please don't post abusive comments.:A
I do not offer advice merely suggestion for the OP to consider. In my view it is dangerous for you to offer advice, however well intentioned, based on the limited information as provided by OP.

I know very well that it is not the most cost/tax efficient route and I never said it was IMHO, too many people let the tax implications rule their lives.

She may have been ill advised to invest £40K in a bond? I suspect her cash in value is simply a reflection of the bonds performance in these difficult market conditions. What you call "substantial financial penalties" is not uncommon, see here http://forums.moneysavingexpert.com/showthread.html?t=1552445 and here http://forums.moneysavingexpert.com/showthread.html?t=1552607. Like many investors she has the option to cut and run or hold until maturity more in hope than expectation that performance will improve. To quote a regular contributor who is far more knowledgeable than I

options are to leave it where it is, switch it around or cash it in (and pay penalties). Without a crystal ball, no-one knows what option will be best. One thing is sure that all three options are likely to be best at different times.

However she does the transfer of assets will "very likely comes under the heading of deliberate deprivation of assets". In practice most councils are unlikely to follow this up and her Housing Authority have already indicated that they will accept transfer of assets.

Any good IFA will be better able to advise OP on the options available for investment. CAB will not and in my view there are far more deserving cases where CAB can offer help.
I agree with Hungerdunger. :beer: