Holding savings for someone

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MVA
MVA Posts: 1 Newbie
in Savings & investments
Hi,

I recently received a large lump sum. I wish to give it to an elderly relative for safekeeping so that I will not be tempted to waste it.

What is the best way to do this? Am I able to do this without transferring ownership of the monies?

Thank you in advance.
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Comments

  • MallyGirl
    MallyGirl Posts: 6,665 Senior Ambassador
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    No - and you might affect any benefits they might be eligible for. If they died while holding your money it might be included in their estate. If you really can!!!8217;t trust yourself then just put it in some form of fixed term account that allows no withdrawals
    I’m a Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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    All views are my own and not the official line of MoneySavingExpert.
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    Yes, it is possible - you lend them them money, interest free, making sure you document the transactions.
    If it's a very large amount, it would be possible to set up a trust with them as the trustee, but this would have complications and expenses.

    Or you could put the money in a passbook only (or card only) account in your name, and give them the passbook / card to hold.
    Eco Miser
    Saving money for well over half a century
  • Keep_pedalling
    Keep_pedalling Posts: 16,755 Forumite
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    You would be very foolish to do so. Now is the time to start to educate yourself on the value of investing for the future and to get a grip on your wastefull ways/
  • dawyldthing
    dawyldthing Posts: 3,438 Forumite
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    Put it in premium bonds and hide the receipt. Put winnings in reinvest then leave well alone
    :T:T :beer: :beer::beer::beer: to the lil one :) :beer::beer::beer:
  • Alexland
    Alexland Posts: 9,668 Forumite
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    Maybe stick it in an AA savings account as they are so painful by the time they return the money you will have forgotten why you wanted it.

    But seriously putting it in another's name us not the right answer and brings complications. You know this money is important so put it in a long term savings account and almost forget about it.

    Alex
  • IanManc
    IanManc Posts: 2,108 Forumite
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    Alexland wrote: »
    Maybe stick it in an AA savings account as they are so painful by the time they return the money you will have forgotten why you wanted it.

    Excellent!

    :rotfl:
  • DigForVictory
    DigForVictory Posts: 11,912 Forumite
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    t's OK not to trust yourself, but it is not OK to burden someone else with your self discipline issues.

    Says she with a bank card in the freezer and another passbook sealed & buried in the garden.
  • Zorillo
    Zorillo Posts: 774 Forumite
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    NSI three year "guaranteed growth bond" pays 2.2% but it will cost you 90 days interest. Based on a £10k deposit (you haven't said how much money is involved), it'd cost you approx £50 to withdraw it, which would hopefully be enough to make you reconsider a 'wasteful' purchase?
  • Zorillo
    Zorillo Posts: 774 Forumite
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    Sorry, should say 'would cost 90 days interest to withdraw it before the end of the 3 year term.
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
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    DigForVictory wrote: »
    Says she with a bank card in the freezer and another passbook sealed & buried in the garden.

    that shows your username in a new light :)
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