£120k to Invest - I get to keep the Interest...

atush

Personally, I would not go down that route. 120K isn't that big a pot, and you already own your house so are invested in property.

So, you have property, cash but no equities or no pension (that you mentioned. You really should think about one if you don't have one. A balance would include cash, property and equities.

Your risk is deprivation of assets rules, and if she is fine then now is the time for her to gift you some of the money, rather than just gift you the interest. Will simplify things greatly.

Or for her to buy a share in your house, as she is living there with you. Many parents do this when moving in with the younger generation after selling.

Otherwise, the money can be invested and she can 'gift' you some each year up to a point where her health deteriorates enough that a care home might be in her near future. Gifts of income after this point will count as Deprivation of assets. So a straight gift of some of the 120K could be a better set up.

getmore4less

your place is mortgage free?

getmore4less

gt94sss2 wrote: »

Such 'gifts' may be liable to income/inheritance tax.

Does your mother 'understand' inflation and realise that over time, the original sum will be worth less and less in real terms?

Regards
Sunil

no gift tax in the uk. So no chance of extra income tax

Frugalsod

I would also be aware that if she has a part ownership of your home that should she need to go into a nursing home then your home could be at risk from government clawbacks if that were the case.

getmore4less

atush wrote: »

(which she would need to live between 3-7 years for it to come out of IHT danger)

no gifts come out of IHT danger before 7 years.
Only gifts over the nill rate band benifit from taper relief

not that any of this applies here.

getmore4less

Missing is the income blowing £50k is fine but what is coming in regularly.

Dunroamin

Frugalsod wrote: »

I would also be aware that if she has a part ownership of your home that should she need to go into a nursing home then your home could be at risk from government clawbacks if that were the case.

Not the case if jointly owned and occupied.

Jenny001

"We've written Wills together"?

That's not allowed, is it? The Beneficiary of a Will is not allowed to have anything to do with the Will and has to be witnessed by someone who is not mentioned in the Will and impartial?