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

Simonblakely

I will have used up my regular saver allowance with my bank and was wondering if I can use hers.  I'm not trying to hide money or avoid tax.  Plus I trust her totally

jimpwarsop

Yes.

Most married couples do it. And she is your mum.

EssexHebridean

You could always start a regular saver account with a different bank? There's many that you don't need to have a current account with the bank to open. 

Band7

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 am surprised you can't find other Regular Savers that you can open in your name.

Band7

NB. If your real name is Simon Blakely, you should sunset this account and open another one with a nickname that doesn't give your name away.

Exodi

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.

phillw

You can open 6 across Natwest, RBS, Lloyds, Bank of Scotland, Halifax 
Totalling £1450 a month, with interest rates from 4.5% to 5.25%

Barclays Rainy day saver allows you to save £5000 at 5% too, though you need two direct debits on the account to offset the £5 monthly fee for.

I'm not touching regular savers lower than that, because in my opinion easy access or fixed rate isa's are a better bet.

eskbanker

Simonblakely said:

I will have used up my regular saver allowance with my bank and was wondering if I can use hers.  I'm not trying to hide money or avoid tax.  Plus I trust her totally

What specifically do you mean by 'regular saver allowance'?  As above, the obvious literal interpretation is the amount of money that can be paid into a regular saver account every month, but equally that's more easily resolved by opening another regular saver account with a different institution rather than giving/lending the money to someone else, so I'm wondering if you're actually meaning something else, such as the personal savings allowance maybe?

Malthusian

Exodi said:

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.

This would be "deliberate deprivation" and you would be assessed as if you still had the money. (Same situation as with care costs.)
But Band7 is correct in one sense - your relative's eligibility for means tested benefits would also be negatively affected.

Band7

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.

redpete

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.

...and other people have helpfully pointed out potential consequences to help the OP and others inform themselves.