Is it legal to ask a family member (my mum) to save money for me?

eskbanker

masonic said:

Simonblakely said:
you need £40,000 in savings to earn 1k interest a year which I don't have

That implies a rate of 2.5%. You can get 2.81% from an easy access savings account, so why bother with the regular saver at all if that's all it pays?

Moot anyway if OP doesn't have that sort of money, but if that notional £40K was being drip-fed into regular savers across the year it implies an AER of nearer 5%?

masonic

eskbanker said:

masonic said:

Simonblakely said:
you need £40,000 in savings to earn 1k interest a year which I don't have

That implies a rate of 2.5%. You can get 2.81% from an easy access savings account, so why bother with the regular saver at all if that's all it pays?

Moot anyway if OP doesn't have that sort of money, but if that notional £40K was being drip-fed into regular savers across the year it implies an AER of nearer 5%?

Good point, my mind drifted away from RS mathematics.

EthicsGradient

Band7 said:

Exodi said:

Band7 said:

You can give your money to anyone you like, and they can do with it what they like. For tax, inheritance, benefit and other purposes, the money counts as theirs.

I think the bit in bold is a bit of an over-simplication and may bit misleading.

You couldn't just 'gift' all your money away just before you die or go into a care home (for example) to avoid inheritance tax or care home fees. There are lengthy rules and limits surrounding this.

Likewise I'm not sure how I feel about the suggestion of 'gifting' your money away for benefit purposes. I don't know the rules on this, so I'm not sure if someone could 'gift' a significant amount of money to a close relative, then claim benefits? I'm sure someone more knowledgeable will clarify.

Please note that if someone does intend to capitalise on 'gifting' money, it is important to remember the cons - mainly that the money ceases to be yours. One particularly bad argument with the person and you can kiss goodbye to any reasonable prospect of recovering the money.

Where have I suggested money should be given away for benefit purposes?

What exactly is overly simplified and  misleading in what I said? I have merely stated facts, verifiable facts at that. I have not commented on potential consequences - it's up to the people involved to inform themselves. Granted, I didn't mention Deprivation Of Assets, mainly because I - perhaps wrongly - didn't think this would be a possibility in OP's case.

FWIW, I would never ask a 3rd party to save money for me, and as I stated, I am surprised the OP wouldn't find other accounts they can open in their own name.

Where? That would be when you said "You can give your money to anyone you like, and they can do with it what they like. For tax, inheritance, benefit and other purposes, the money counts as theirs."

jimjames

Band7 said:

Exodi said:

Band7 said:

You can give your money to anyone you like, and they can do with it what they like. For tax, inheritance, benefit and other purposes, the money counts as theirs.

I think the bit in bold is a bit of an over-simplication and may bit misleading.

You couldn't just 'gift' all your money away just before you die or go into a care home (for example) to avoid inheritance tax or care home fees. There are lengthy rules and limits surrounding this.

Likewise I'm not sure how I feel about the suggestion of 'gifting' your money away for benefit purposes. I don't know the rules on this, so I'm not sure if someone could 'gift' a significant amount of money to a close relative, then claim benefits? I'm sure someone more knowledgeable will clarify.

Please note that if someone does intend to capitalise on 'gifting' money, it is important to remember the cons - mainly that the money ceases to be yours. One particularly bad argument with the person and you can kiss goodbye to any reasonable prospect of recovering the money.

 Granted, I didn't mention Deprivation Of Assets, mainly because I - perhaps wrongly - didn't think this would be a possibility in OP's case.

If you give money to someone, they give it away (back to you) but subsequently need care, can you see the problem?

Band7

jimjames said:

Band7 said:

Exodi said:

Band7 said:

You can give your money to anyone you like, and they can do with it what they like. For tax, inheritance, benefit and other purposes, the money counts as theirs.

I think the bit in bold is a bit of an over-simplication and may bit misleading.

You couldn't just 'gift' all your money away just before you die or go into a care home (for example) to avoid inheritance tax or care home fees. There are lengthy rules and limits surrounding this.

Likewise I'm not sure how I feel about the suggestion of 'gifting' your money away for benefit purposes. I don't know the rules on this, so I'm not sure if someone could 'gift' a significant amount of money to a close relative, then claim benefits? I'm sure someone more knowledgeable will clarify.

Please note that if someone does intend to capitalise on 'gifting' money, it is important to remember the cons - mainly that the money ceases to be yours. One particularly bad argument with the person and you can kiss goodbye to any reasonable prospect of recovering the money.

 Granted, I didn't mention Deprivation Of Assets, mainly because I - perhaps wrongly - didn't think this would be a possibility in OP's case.

If you give money to someone, they give it away (back to you) but subsequently need care, can you see the problem?

I completely understand Deprivation of Assetd issues. No idea why I am being aggressively quizzed for what I posted in this thread