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How do I make my inheritance safe from unfaithful husband

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  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    polymaff wrote: »
    You're scraping the bottom of the bowl - see, I can pun, too - by putting a case where no allowances are, and no BRB is, available
    The person in question presumably already has some income including interest income as the average well-off 51-year-old usually does. So, there may be no spare allowances or basic rate band. We know nothing about the person really other than what they have told us.

    What we do know is that the person has at least £650k of spare cash which they are looking to deposit to earn savings interest - and so whether they are earning 1% on it, or 1.5% on it, or 2% or more, they are well in excess of the personal savings allowance whether their circumstances mean that allowance is £500 or £1000 or £0, so there is little point bringing the personal savings allowance into it at all, for example.
    - and by implying that the predicted closure date (somewhere in 2019, remember?) is twelve months away. Hardly representative of the case outlined by the OP
    The OP is going through a divorce process and expects to eventually emerge out the other side of that process, and be ready to purchase a house at some unspecified date in 2019.

    2019 is less than 370 days from now, so a 365-day product seems appropriate and not too long of a term
    - it is a term maturing before the money is needed.
    -But it pays more interest than instant access ; instant access is not needed, at least not for all of it.

    So, the product can be suitable for the case outlined by the OP.

    I don't know how you can say that is 'hardly representative of the case outlined by the OP' ; because the OP expects to use the money at some unspecified date during a year which starts in the next 370 days and I have suggested "...so could presumably use the Guaranteed Income Bonds at 1.45% for a one year fix.". Is that a wildly stupid suggestion on my part and 'hardly representative' of her needs? Too short a term? Not a long enough term? Sounds fine to me.

    I am only saying she could use it. I am not even suggesting she uses it for all the money - she may want to put down a deposit for the 2019 purchase during 2018, or her plans may accelerate substantially depending on how the divorce process goes financially or emotionally and she'll want to crack on with her life. We do not know.
    Oh, and you've misquoted an interest rate.
    Yes, I had the gall to produce some calculations in which I said the 1-year guaranteed income bond rate was 1.47%, working from memory, where the actual rate being offered is..... 1.46%.

    Feel free to rerun the numbers. 1.46% after 40% tax is 0.876% or 88p per £100. Whereas 1.47% after 40% tax is 0.882% or 88p per £100. In my example I used £8.80 per £1000.
    Not your finest hour, BH :)
    Despite it not being my 'finest hour' I am sure there is nobody that was misled by my post, given the numbers are materially unchanged and the conclusion is unchanged with the corrected interest rate.

    Of course, we cannot always be in our 'finest hour' as we have to occasionally put in some mundane hours to help the really fine ones stand out.
  • Murmansk
    Murmansk Posts: 1,135 Forumite
    Part of the Furniture 500 Posts Name Dropper
    On the subject of divorce and solicitors, just be aware that they cost a lot of money and if the experience of my friend who recently got divorced is anything to go by, if the "other side" drags their heels and fails to respond it'll cost a great deal for getting exactly nowhere.

    My friend's solicitor gave her an estimate of £6,000 for the cost of her divorce but after about nine months of nothing much going on she'd spent most of that money and received another letter estimating the future costs at £6,000.

    An example of how you can spend money on absolutely nothing is when the solicitor sends you a letter with an attached copy of a letter he's received from your husband's solicitor that says simply "thanks for your letter, we are considering its contents" or something like that.

    I think solicitors make a massive proportion of their money by doing simple letters like this that do absolutely nothing to progress the case and I'm sure they'd not admit it but I think they must love it when their respective clients delay and fail to respond as it's all more money for them for doing not much.

    No doubt they'd defend their position by saying it's important to keep their client up to date with what's happening but the whole thing is a money-making machine for the legal profession and at £250 per hour there's a lot of money to be made!
  • Again, to clarify as I obviously have stress brain over Christmas, I put 2019 and meant 2018!!

    I have a solicitor and my husband has just organised his solicitor. A divorce petition has been issued. When I sold my parents' house a few months ago, I was scared that he would somehow have a claim on it. It's in a bank account and I'm worried it will slowly be eaten away because of debts my husband has incurred, he's just been made redundant and he drip feeds money into our joint account to pay for mortgage and bills. There's a lot of uncertainty and I just want to protect that money from it disappearing if the bank fails. When I saw an independent financial adviser, she said for £500 she'd set up 8 accounts with roughly 80K in each one and then suggested I buy premium bonds with the rest. Since my parents' passed away, it's been nothing but solicitor bills for probate, my will and now divorce so I'm questioning every expense. But realistically opening up 8 accounts will be pretty time consuming, filling in forms, etc. researching the banks. But at the same time I don't want to let my mum and dad down and not treat their hard earned with respect and intelligence. Thanks in advance.
  • xylophone
    xylophone Posts: 45,604 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It could be safest and easiest to put the lot in NS&I.

    https://www.nsandi.com/
  • You have temporary protection for an inheritance, I believe the FSCS limit is £1 million for up to 6 months for certain circumstances such as yours. Your IFA should know that. All your money would be safe in NS&I as they guarantee up to £1 million - that is your simplest route.

    As for whether your husband can claim any of it, that’s where you need a solicitor. I’ve always paid the extra for my solicitor and they have always been worth the money as they’ve always been efficient, quick, and always on the ball. It’s like buying cheap toilet roll, you end up having to buy more as it doesn’t last and you would have been better off buying the expensive brand - it’s a false economy! With the amount of money involved, you need to pay for the expertise.
  • Alexland
    Alexland Posts: 10,183 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    I want to make it safe so that it can be seen that I am keeping the money for myself and the children.

    Have you considered gifting some of it to your children now using Junior ISA (or CTF if they have one), and/or a child pension? Although it won't be accessable you could get some in now and more from 6th April?

    Alex.
  • Keep the inheritance separate from any joint accounts etc. Ideally don't touch it. NS&I products tend to pay adequate interest rates, have an okay online interface and, importantly, remove any worries about FSCS coverage.

    As for who gets what, this is something your solicitor should be answering. My understanding is that for as long as inheritance is not "mingled" with joint finances you should be in a good place with it. But I'm no expert.

    Be prepared to pay for advice. If you can't get your soon to be ex to agree amicably to the division of assets then it's going to cost you both a lot in legal fees. Throwing a £5,000 sweetener (for example) on top of a 50/50 division of the other assets might be worthwhile.

    Even if he is a cheating scumbag.

    Your IFA isn't needed at this point in time.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Again, to clarify as I obviously have stress brain over Christmas, I put 2019 and meant 2018!!

    I have a solicitor and my husband has just organised his solicitor. A divorce petition has been issued. When I sold my parents' house a few months ago, I was scared that he would somehow have a claim on it. It's in a bank account and I'm worried it will slowly be eaten away because of debts my husband has incurred, he's just been made redundant and he drip feeds money into our joint account to pay for mortgage and bills. There's a lot of uncertainty and I just want to protect that money from it disappearing if the bank fails. When I saw an independent financial adviser, she said for £500 she'd set up 8 accounts with roughly 80K in each one and then suggested I buy premium bonds with the rest. Since my parents' passed away, it's been nothing but solicitor bills for probate, my will and now divorce so I'm questioning every expense. But realistically opening up 8 accounts will be pretty time consuming, filling in forms, etc. researching the banks. But at the same time I don't want to let my mum and dad down and not treat their hard earned with respect and intelligence. Thanks in advance.

    It will probably take you a day. Which is why your solicitor would charge £500. But as said you can just put it all in one NS&I account which will take you half an hour.
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