Passing money to the kids

squarebear99

Just to reiterate it. It's not being given away. It was simply a ploy to protect it in the event that Co-op went belly-up. Though Rodders53 has put our minds at rest.

PennyForThem_2

Put some of it in another bank? Santander offer 3% interestup to20k for 2 accounts held in same name.

getmore4less

Mojisola wrote: »

But the DWP might if a claim is later made for benefits.

There is no sugestion this is being gifted away just held on trust in another persons account.

There is no deprivation of assets(yet).

Mojisola

getmore4less wrote: »

There is no sugestion this is being gifted away just held on trust in another persons account.

There is no deprivation of assets(yet).

That might be everyone's intention but, legally, if the money goes into another person's account, it becomes their property.

If the money is to stay in the mother's ownership, it should be in an account in her name - there's no good reason for that not to happen.

getmore4less

Mojisola wrote: »

That might be everyone's intention but, legally, if the money goes into another person's account, it becomes their property.
.

The beneficial interest can remain with the settlor(Mother) as a bare trust(no need for a formal trust deed or trust account) with the daughters as trustees

If I give you £10 to do some shopping and I want the shopping/change, it creates a trust.

There is the secondary issue here of all this going on behind the mothers back, they need POA(which the sister may have) and preferably a LPA for future use.

Mojisola

getmore4less wrote: »

The beneficial interest can remain with the settlor(Mother) as a bare trust(no need for a formal trust deed or trust account) with the daughters as trustees

If I give you £10 to do some shopping and I want the shopping/change, it creates a trust.

Try that argument with the DWP if one of the recipients of the money needs to claim benefits - "Oh no, those thousands of pounds in my account aren't mine - they're my grandmothers!"

And imagine the situation where one of the recipients decides to spend the money - "Granny gave me that money - it was a gift so I could do what I wanted with it".

There's no point doing something that has potential problems when it's easy to just open another account.

SunReader

Spreading the risk makes sense, but really there are much bigger risks ahead.

50 percent of elderly end up in a care home now, even if the family are able to care, social services will have her in lock up and pinch the house before you can say 'mental capacity act 2003, least restrictive option'.


Care fees at 1k a week, 'deprivation of assets rules' is the concern.

Think more about getting lasting power of attorney and a living will drafted while she still has the capacity. Nothing worse than spending a grand a week to keep a relative's life artificially sustained in pain and misery, whilst doctors keeping 'saving' her life. Without LPA you have no rights at all -nor will she.

Mojisola

SunReader wrote: »

50 percent of elderly end up in a care home now, even if the family are able to care, social services will have her in lock up and pinch the house before you can say 'mental capacity act 2003, least restrictive option'.

The reality is the opposite to this.

If a person needs to go into care and will be self-funding, it's a business arrangement between that person and the care home so the local authority doesn't benefit in any way - and they never 'pinch' the home!

SS will do everything to keep people at home because it's much cheaper than residential care. Many people who go into care home as self-funders end up having their care paid for by the LA so it's in the council's interest to keep people in their own homes for as long as possible.

Person_one

SunReader wrote: »

Spreading the risk makes sense, but really there are much bigger risks ahead.

50 percent of elderly end up in a care home now, even if the family are able to care, social services will have her in lock up and pinch the house before you can say 'mental capacity act 2003, least restrictive option'.


Care fees at 1k a week, 'deprivation of assets rules' is the concern.

Think more about getting lasting power of attorney and a living will drafted while she still has the capacity. Nothing worse than spending a grand a week to keep a relative's life artificially sustained in pain and misery, whilst doctors keeping 'saving' her life. Without LPA you have no rights at all -nor will she.

You clearly have never had the delightful experience of trying to secure somebody a funded residential placement.

getmore4less

SunReader wrote: »

50 percent of elderly end up in a care home now, .

Like to see some data to back that up!

The realistic estimates are more like,

less than 5% for over 65s, over 85s this probably rises to around 20%.

(based on 2011 ONS data and more recent age UK numbers)

with around 1million over 85 no way are there 1/2 million in care.

and over 9million over 65 there are not 4.5 million in care.