Splitting Money Following Medical Negligence Claim

PlasticDragon

The claim was brought by my wife on behalf of my mother in law. Claim was started before she passed

74jax

PlasticDragon said:

The claim was brought by my wife on behalf of my mother in law. Claim was started before she passed

Of it was for a negligence claim against your now deceased mil, I would let fil keep it all. Especially if he's coming up to an age where he will need it more. 

sheramber

So the money was payable to your MIL but since she was deceased it was paid to  your FIL.

The money is his. 


If he decides to gift some money to your wife you will need to  consider  Inheritance  Tax if applicable,  and deprivation of assets if he needed to go into care at a later date.

As attorney for your FIL your wife must act for his benefit and keep a record of  what she does.


I don't know if the Public Guardian would consider transferring a large sum of money to her own account as being in her father's best interest.

The money can be invested in your FIL's name in other accounts in his name, rather than in an every day account. It doesn't  need to be transferred to your wife's account to move it out of his every day account.

  

Spendless

As my understanding is, the money belongs to FIL. My sis in law had a solicitors look at my (now deceased) MIL's case. It was never about the money but sis in law announced if there was any awarded  she would be giving it to charity. It was pointed out to her, that wouldn't be her decision, the money would belong to FIL and up to him what he did with it.  

I'm not even sure where you'd stand if you did have written evidence that FIL intended giving your wife 50%, especially if he is either in care or lacks capacity to make his own financial decisions. Without evidence that's going to be even more difficult.

elsien

PlasticDragon said:

A valid question, it’s just what we were told by our solicitor, as he’s the next of kin for the person involved.

Next of kin is a legally meaningless term. 

I would suggest asking the solicitor to clarify what on earth they are talking about. ETA - just seen where you’ve clarified the claim was about your MIL. Presumably the money goes to FIL because they were married / her estate was left to him / he’s the main beneficiary under the intestacy rules/ whatever.

Next of kin still isn’t a thing though, in law. 

I would also agree that FIL needs to be very careful about deprivation of assets unless he has sizeable fortune that means he won’t ever need the money he’s gifting to you. Because it is a gift. 

PlasticDragon

Thanks all 👍🏻

Scotch_Bonnet_

Hi, have you explored putting it in a trust with you both as beneficiaries?