Looking after my father’s money

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My parents have sold their house and moving to sunny India soon, the house money around £75k will be coming in to my father bank account.
My father said to look after it as he don’t need it, so I’m thinking ask my father to open NS&I Income bond account and transfer all the money or is there somewhere else I can earn more interest?

Thank you

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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    kingrulzuk wrote: »
    My parents have sold their house and moving to sunny India soon, the house money around £75k will be coming in to my father bank account.
    My father said to look after it as he don’t need it, so I’m thinking ask my father to open NS&I Income bond account and transfer all the money or is there somewhere else I can earn more interest?

    Thank you

    I think you need to clarify.

    Is he giving this money to you, or just asking you to 'park it" somewhere for an indefinite period of time? If the latter, yes do as you suggest* unless you are prepared to take a long term investment in the stock market.

    * One issue, I dont know the position of foreign nationals with money in NS&I, which I assume he is. Will he ever be coming back to the UK again?
  • dunstonh
    dunstonh Posts: 116,643 Forumite
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    My father said to look after it as he don’t need it, so I’m thinking ask my father to open NS&I Income bond account and transfer all the money or is there somewhere else I can earn more interest?

    So, is he gifting it to you or is it to remain in his name once you have sorted the alternative?

    If it is to remain in his name then remember that different countries of residence will treat foreign held assets differently.

    if it is in your name then you can suffer tax consequences. It could also create estate issues on death with siblings, if any as technically, that money would not be your fathers. Also, if you are on benefits or end up requiring means tested benefits in future, this money would be treated as yours.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    It's also worth both your father and you being aware of the automatic information sharing that now occurs between UK and India (and most other countries with effect from either this year or next depending on the date of the treaties) to support tax compliance.

    You were talking about him (rather than you) opening up an account before he leaves. So you would be describing a situation where a UK financial institution is maintaining an account for an Indian resident.

    As such, at the end of each calendar year the FI will report the year end balance, together with the amount of interest income credited during the year, to HMRC, who will send it over to the Indian tax authority. This will help to ensure the Indian tax authorities are able to collect the right amount of tax from him on his overseas income. Similarly if he invests in funds or shares via a broker or custodian the dividends get reported too.

    I mention this only because AEOI (automatic exchange of information for tax purposes) is a relatively new tax development, and India is known as one of those countries which has a large "cash based" economy with people looking to avoid tax and/or enquiries about their income by choosing to avoid putting all of their money in the Indian banks. I assume your father is an upstanding citizen and not one of those people, so no offence is intended.
  • kingrulzuk
    kingrulzuk Posts: 1,330 Forumite
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    thank you all for the info.


    my father is not giving me the money he has just asked to keep the money safe, as my parents have took early retirement and are going to India for 1 or 2 years as they just want to see if they can stay there for good.


    im the only son so god forbid if anything happens to my parents then I will get all my parents asset, also my parents are Scottish but been going to India for last 30 years.


    my parents will not be working in India but will be doing any volunteering if they can.
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  • dunstonh
    dunstonh Posts: 116,643 Forumite
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    my father is not giving me the money he has just asked to keep the money safe

    If it is in your name then he is gifting it to you. You can gift it back again in future if you want but as it stands, it is your money.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Keep_pedalling
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    It would be best if your mother and father set up lasting powers of attorney which would allow you to manage their financial affairs while they are away.
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
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    I suspect that your family is of Asian origin. If so, then gold is not an alien concept. Gold will satisfy all you need to accomplish, discuss it with your parents.

    If not, then consider the benefits of having assets off the radar. If you buy physical gold then there are procedures for moving gold to India, but selling here and transferring by fx overcomes that..._
  • Apodemus
    Apodemus Posts: 3,384 Forumite
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    It would be best if your mother and father set up lasting powers of attorney which would allow you to manage their financial affairs while they are away.

    A +1 from me for this (and a -1, for the gold suggestion!). Make sure that the POA is tailored to your specific needs and that it gives you sufficiently wide powers.
  • Malthusian
    Malthusian Posts: 10,980 Forumite
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    DiggerUK wrote: »
    I suspect that your family is of Asian origin. If so, then gold is not an alien concept. Gold will satisfy all you need to accomplish, discuss it with your parents.

    If what Dad wants to accomplish is to preserve the nominal value of the house money for when he comes back in 1 or 2 years then it will not accomplish that.

    If Dad's time horizon is longer than the trip to India and he wants to maximise the chances of preserving the real value of the house money over the long term then gold will not accomplish that either.

    If Dad wants to gamble his house savings on whether the next few years are one of the roughly 1 in 2 time periods in which shiny metal goes up then great but I don't know where you got that from the OP's posts.

    Your idea that Asians are more susceptible to stupid ideas about gold than other races is rather prejudiced. Would you have said that if the OP's father was off to Israel?
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
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    Malthusian wrote: »
    ...........Your idea that Asians are more susceptible to stupid ideas about gold than other races is rather prejudiced...........
    There are many areas of the world were gold is the normal way to save. India is one such area.
    When you see world demand for gold jewellery in figures from the World Gold Council, they are not, in the main, to do with western luxury consumption.

    As I have researched gold in depth, my comment is not one of prejudice, or empty minded generalities.
    Not being knowledgable of gold, you can be forgiven an understandable faus pas..._
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