🗳️ ELECTION 2024: THE MSE LEADERS' DEBATE Got a burning question you want us to ask the party leaders ahead of the general election? Submit your suggestions via this form or post them on our dedicated Forum board where you can see and upvote other users' questions. Please note that the Forum's rules on avoiding general political discussion still apply across all boards.

Savings Account

Options
Hoping somebody can help with a tricky problem!
An elderly relative wants to gift some money to my adult children but wants me to have control over it until they reach a certain age. The problem is I am on benefits and if I open a saving account to put the money into until the age is reached, I would have to declare it as it would be assumed the money is mine and will possibly affect my benefits.
Is it possible to open an account 'in trust' for adult children?
I have tried explaining this but she doesn't quite understand. She definitely does not want them having access to the money at the moment though but wants to 'set her affairs in order' as soon as possible. I am not being gifted any money, only a few pieces of jewellery which I have always admired.

Really stuck for an answer to this, and hoping somebody can suggest a solution.

Comments

  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    What is the reason for her wanting to get rid of the money? If she is concerned that she might die before the money should be given to the beneficiaries, she just need to write it into her will.

    If she wants to get rid of the money so she is entitled to care, she should be reading up, or ask Age UK, about Deprivation Of Assets.
  • WestieFan
    Options
    She is not 'getting rid' of money, she just wants to help a couple of young people on their way whether it be used for uni fees, deposit for flat or whatever. The amount involved is only a couple of thousand, not even enough to affect her own pension or benefits. She does not want them to have to wait until she dies, she wants them to have it when they need it which probably won't be for a couple of years yet and hopefully she will still be here to see them benefit from it.

    The lady is in her 90s and does not have a will. She lives with a relative who cares for her. She will not and never will need care outside of that. Although she is quite sharp in every other way, her eyesight is failing so she won't be reading up about deprivation of assets as you suggest and would be quite upset at the suggestion. She worked into her 80s and can't understand why she can't do what she pleases with the small amount of money she managed to save.

    I was retired on ill-health after more than 50 years of working and now find myself having to rely on benefits for a couple of years until I reach the new retirement age. As I said in my OP, the issue is she wants to transfer the money to me to pass on whenever the time is right which I cannot do. Neither of us are 'hiding' 'getting rid' or failing to disclose income or savings.
  • xylophone
    xylophone Posts: 44,634 Forumite
    Name Dropper First Anniversary First Post
    Options
    You speak of adult children so assume that they are 18+.

    A formal trust could be set up but for what seem likely to be modest sums the solicitor's fees and the administration for tax would hardly seem worth it.

    If the idea is that these young people should benefit from the money in say 2018-20, perhaps a fixed term building society/bank savings bond in the sole names of the individual young people would suit.

    And it would be a good idea for the relative to make a will.

    http://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html
  • Dan83
    Dan83 Posts: 672 Forumite
    First Post Combo Breaker First Anniversary
    Options
    Could she not give you cash and you keep it safe at home?

    It is only a couple of thousand.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Name Dropper First Post First Anniversary
    Options
    Given teh circumstances then this would be solved by a will.

    If she then wants to give the money early as she deems them to be responsible or similar then there's nothing to stop her gifting the money at that point.
  • WestieFan
    Options
    Thank you xylophone, Dan83 and bigadaj for your replies.
    I would be a bit nervous having large cash amounts in the house as it probably wouldn't be covered by insurance if anything was to happen.
    Unfortunately, she is not interested in making a will, so I think the fixed term accounts would be the best way to go in the circumstances.

    Thank you again for your suggestions.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 2 Election 2024: The MSE Leaders' Debate
  • 343.8K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 236K Work, Benefits & Business
  • 609.1K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards