Transfer of mums savings

worried_child

My mother has said that she would like to transfer some of her £100,000 savings to myself and brother and sister.She lives in rented accomadation..Would this money be taxable and would it be taken into account if she needed to go to any care/ nursing home.She is in her 80's and very fit and healthy and independant ,and we would only put her in a home as a last resort.Someone has suggested her buying us premium bonds.Also if she kept the money is she entitled to ant heolp with her rent??. Im a new poster so please all advice would be greatfully recieved.

Lokolo

She will be not entitled to any financial help should she go into a nursing home as she has money (and giving to you means she is trying to deprive her assets and is illegal I believe). Although I do not know all the ins and outs of it, someone else will.

Should she die within 7 years of giving the money the money can be taxed if her estate is over the inheritance tax threshold.

Premium Bonds have a maximum of £30k per person but the return isn't great.

opinions4u

worried_child wrote: »

Would this money be taxable

No. Although if her estate is subject to Inheritence Tax and she dies within 7 years there could be tax for the estate to pay.

and would it be taken into account if she needed to go to any care/ nursing home.

Yes. Or if she wished to claim certain other state benefits. Google "deprivation of assets".

Someone has suggested her buying us premium bonds.

While that would be nice, they aren't a great form of saving and the prize pot is very low. Personally I'd sell them immediately and pay off debt / invest in a way more suited to my needs.

Also if she kept the money is she entitled to ant heolp with her rent??. Im a new poster so please all advice would be greatfully recieved.

Probably not. One there for the benefits section of the forum.

Mojisola

worried_child wrote: »

My mother has said that she would like to transfer some of her £100,000 savings to myself and brother and sister.

Also if she kept the money is she entitled to ant heolp with her rent??.

She won't be entitled to any means tested benefits whether she keeps the money or gives it away. Why would someone with £100,000 want to claim benefits?

worried_child

Thanks for you quick replies.Yes I know Mojisola it was a silly question to ask about benefits,but she has asked us to find out on her behalf.My parents had worked very hard all their lives and she herself is worried that she is spending our inheritance as she has already spent £24,000 on rents,but as she doesnt have enough money to buy herself a bungalow she hasn't much choice.

le_loup

worried_child wrote: »

Also if she kept the money is she entitled to ant help with her rent??. I'm a new poster so please all advice would be gratefully recieved.

If she has at least £100,000, why is there any thought about needing help for her rent? And even if she has nothing because she gave it all away, why then would she deserve help?
My advice is to persuade her to keep all her money in case she needs it herself, that's why she saved it. The rainy day could be tomorrow. That's your duty as her child.
When she dies and she has not had to use it on care ... it's all yours.