Money in France, - Effect Benefits here?

gaogier

Hello

Basically, when I was 2 or 3, my dad left my mum and started to date my "step mum", he never married her, but after a few years, he left her for someone else. She has been there more than my dad has ever done, and has been like a second mum to me.

She has moved to france, and lives their happily. However she has cancer of the kidney, thyroid, and lung, as well as a few other expected places like the liver, eye (although just been ruled out).

She is selling up her house in france, and is planning to give me "my share" before her family comes in and takes everything, and without the french tax system who will take some 70% or something? Anyway, apparently she is setting up an account in my name in france for the money to go into, and when she becomes too ill, she is going to give me this cash. I would much prefer her in my life to be honest. I see her every so often, and has always been there as I stated before.

So, if she does set up something where I will get money, (no idea how without me setting up a french bank?) As I won't "receive it" until she has only a week or 2 left, I don't know how would this effect my benefits claims - they state no more than £16k savings.

I could be making a mountain out of a mole hill here, I don't even know if I am getting money, it could be furniture or something. Although some of her stuff is really old and valuable.

I have only overheard parts of convocations so I couldn't tell weather or not this is actually happing.

Elvisia

I don't know what the official answer is, but regarding benefits, when I signed on for JSA I had about 5k euros in my French bank account, some of which was to cover my french tax return, and some of it to cover the rest of the stupid bills france kept sending me. So when I had to declare what I had I wrote this all on the form, and they never included this as my savings.

As it turned out my final tax bill was way higher than I had assumed, and it completely cleared me out.

But any money you get I would declare to avoid overpayment of benefits. In France it's very difficult to open a bank account, so it will be hard to impossible for her to open one for you.

Dunroamin

Any money gift or inheritance in France will still affect UK means tested benefits. In addition, France has a gift tax at approximately the same rate as their inheritance tax, designed specifically to cover the situation you describe.

gaogier

Hahah, classic french?

I only asked this due to a thread I just read about someone holding money for someone else, I thought, hang on and made this post.

Oh, going to look after her for a short while wont effect my benefits right?

Bogof_Babe

gaogier wrote: »

Hahah, classic french?

I only asked this due to a thread I just read about someone holding money for someone else, I thought, hang on and made this post.

Oh, going to look after her for a short while wont effect my benefits right?

Depends what benefits you're receiving. If it's JSA I wouldn't think you could claim it when overseas as you wouldn't be available for work in the UK.

rogerblack

If the money is put into the proper form of trust, it will not affect benefits at all.
However, you need an actual english solicitor that understands benefits in order to do this.

If you have access to the money - in a foreign bank account - for example - then it is taken fully into account.

It is entirely legal and a normal part of estate planning to minimise taxes and other duties paid on estates, which this is in effect.

However.
The above raises all sorts of fun legal issues - you need to also make sure that what she is proposing to do is legal under French law - and will not for example - cause the French authorities to come at you for the tax.
This is a complex area of law, and you're not going to get good advice for her on forums.
She needs to find a solicitor who knows both English and French law.

Additionally - it absolutely must never be in your control in a bank account or similar ever.
Moving it from a bank account under your control into a trust will mean you are treated as still having it from a benefits POV.

gaogier

From what I can work out, her friends are English lawyers, or solicitors or something, who are now living in france and do some french law stuff...

I am having to get into debt to pay for a passport and tickets to france etc. due to the fact she is currently receiving cancer treatment, and may need to suddenly get over to france, if things turn bad fast.

I am currently on Income Support and DLA.