5k gift from Dad...where to put it (a catch though)

blitzdemanwedders_2

Hi everyone,

My Dad (in his infiinate wisdom) has decided to try and buck the system now that he has retired. He wants to give me 5K of his savings so that when he goes to claim more benefits he does not have a lot of savings for them to tally up against. Apart from the legal side to this will he honestly be any better off. I am sure they will check his bank accounts to see this withdrawal and will ask questions - surely...

If not whats the best way to invest it although he wants it to be easily accessible...

lipidicman

He can give gifts of up to £3k a year I think (from Inheritance tax rules) and you can carry over from the previous year (ie £6k)

But I dont know how this will affect his benefits.

Of course he will actually have to give the money to you - you can then do what you want with it as it will be legally yours. He cannot have access to it. This would definitely be benefit fraud

fatbelly

The rule is 'if you deliberately get rid of capital in order to claim or increase benefit, you are treated as still possessing it'. It's caled 'notional capital'

Whether it will affect his benefit depends on his age, total capital, income, what benefit?

They also have to show that this falls under the notional capital rules

dunstonh

If someone in the financial services industry is aware you are doing that transaction, they would have to report it under money laundering rules.

If the benefits office become aware of this now, or in the future, they can remove the benefit gained and claim back payment. They could also consider taking legal action.

blitzdemanwedders_2

Thanks to all your responses..as i guessed he will be making a grave mistake so i shall tell him not to bother..after all being nearly 70years old i am sure the benefits due to him will not matter upon and extra 5k or not.