joint savings in lower tax payers account

bluesnice

My boyfriend and I are saving for a house deposit. We have used our ISA allowance for the year and have savings accounts. As hes a higher tax payer and I'm a lower tax payer I suggested that all the savings (80% of which is his) should be in my name/account. As we've been together a while we do trust each other and so he's agreed.

Can anyone tell me how I can ensure that he gets his money back if anything was to happen to me. Now, I know I said I trust him, but I do want to protect myself and I don't want to give him my passwords etc. What would be our best option?

sarahlouise210

You could make a will leaving him a certain amount of money should anything happen to you. You could alternatively let your next of kin know - this way if anything happened to you they would inherit your savings and would know to give him his share. Why do you not trust him with your passwords....? You have been together for a while, are saving for a house ..but passwords are out of bounds! Having said that I would not tell my husband mine either !!

Murtle

reminds me of a seinfeld sketch.....

what's wrong with partner knowing your pin number.....

but even if they were to know it, if something happened to you - the money would still be classed as yours and divided as per your will or lack of will!!!! Make a will leaving him the money...but be careful about inheritance tax etc

zzzLazyDaisy

You could open a separate savings account in your name in which only his share of the money is paid into. Then, in your will, you state that you leave the contents of that account free off duties and taxes to him. This saves having to put a figure on the sum. Alternatively, you put all the money into one account, and leave 80% (or whatever) of the contents to him.

In any event, inheritance tax will only be an issue if your total estate exceeds £250,000.

Any money that he gives to you to put into an account in your name must be given as an outright gift, otherwise he is defrauding the Inland Revenue by seeking to evade tax. So if you fall out, he has no legal claim on that money (I am sure you realise this, hence your question).