Mum wants me to invest £30000 of her money

Billy_the_Fish_3

My mum has asked me to open a fixed rate savings account for 2 years so that she can invest her savings. Reason she does not want to do it herself is because she wants it to belong to me should she pass away, she is retired and 67years. I am a taxpayer
Can anyone suggest the best vehicle to use ??

gozomark

Is the account to be in yours, hers, or joint names ?

Billy_the_Fish_3

Hi- The account will be in my name
She does not want the money in her name due to other family members knowing about it

lewis89

if you dont need access to it , on the high street the best one is abbey with 4.2% 2 yr bond

RayWolfe

All sorts of problems occur if you do this:
Ownership
Income Tax
Inheritance Tax
Deprivation of assets
.... and possibly an implication of fraud.

ses6jwg

I suggest you speak to a solicitor about this... there are ways around theft cough, I mean inheritance tax but its a fine line between avoidance and evasion.

Pandora123_2

There is more on the tax implications of gifts here:

Inheritance tax planning and tax-free gifts

Gifts that are exempt from Inheritance Tax

sleepless_saver

RayWolfe wrote: »

All sorts of problems occur if you do this:
Ownership
Income Tax
Inheritance Tax
Deprivation of assets
.... and possibly an implication of fraud.

And if you needed to claim any means tested benefits e.g. if you were made redundant, the presence of £30k sitting in an account in your name would stop you getting any.

Mr_Thrifty

Hmm.

"She does not want the money in her name due to other family members knowing about it"

That sounds like a whole bucket of trouble stored up for you in the future, unless you address it properly right now. Whether the money is in your name or hers, one thing is for sure: those family members WILL want to get their greedy mitts on it the moment she kicks the bucket.

I know what I would do. GET HER TO WRITE A WATERTIGHT WILL AND MAKE SURE IT LEGALLY BECOMES YOURS WHEN SHE KICKS THE BUCKET.

This will save you untold aggravation in the future.

You would be amazed how VICIOUS even close family members can become when the whole issue of inheritance raises its ugly head. Those you love and trust will suddenly become your worst enemies. It almost always happens that way when big sums of money are at stake.

Andystriker

The First thing your Mother should do is go and see a Solicitor and ask them to draw up a will. (Don't try any of these do-it-yourself kits you can get from stationers). It will cost about £75 but it will be the best £75 your mother ever spends. It would be a good idea for your Mother to make you the sole executor as this will put you in control when your Mum leaves this planet. You would still be able to use a Solicitor to administer the estate but you would be in control.

If you are sure that you won't be claiming any means tested benefits in the near future then I don't think there is a problem your Mum transferring the money into your name.

But I can't stress enough - Get her to make the will asap.

Andy

Edinburghlass_2

It will however need to be declared to the tax man as belonging to the OP and the bank/building society may wish to do money laundering checks.