Help for my mums savings

Krakkkers

So my dad just died and we are sorting out my mums finances going forward.
She is 92 and on state pension and pension credit but has around £20k in savings which it turns out she has been receiving no interest on.
Being the age she is she has no interest in the internet so we are looking at finding her a highstreet building society paying good interest, as a non tax payer i guess it doesn't matter if its an ISA or not.
Most if not all of the accounts in the moneysaving website are online accounts but my mum will want a physical highstreet bank/building society so any recommendations?
Also probably the wrong board but how much savings are you allowed before it affects things like pension credit/housing benefit/council tax discounts?

Bigwheels1111

Your Mum might be up a creek without a paddle.
6k or 16k effects benefits.
Depending on which ones you get.
16k limit for council tax.
Over 10k will lower or stop pension credit. Can’t find exact amounts.
No housing benefit if over 16k in savings.
She needs to spend some cash in a hurry.
Happy birthday my lovely daughter have your 3k tax free.
Then pay every bill she has to get below 16k.

https://www.gov.uk/inheritance-tax/gifts#:~:text=Annual%2520exemption,%C2%A33%252C000%2520between%2520several%2520people.

badmemory

I suggest googling it.  Over £10k savings they assume £1 a week for every £500, so for £10k over that would be £20 a week.  Be careful here.  I assume she has only basic state pension at present but she could inherit some from her husband so you will need to watch the amounts involved as she may no longer be entitled to the pension credit & they can get be unpleasant even if the error is just from not realising.

You are right about an ISA not being necessary & although it is not so much the case now as it used to be savings accounts can have slightly higher interest rates.

Keep_pedalling

Bigwheels1111 said:

Your Mum might be up a creek without a paddle.
6k or 16k effects benefits.
Depending on which ones you get.
16k limit for council tax.
Over 10k will lower or stop pension credit. Can’t find exact amounts.
No housing benefit if over 16k in savings.
She needs to spend some cash in a hurry.
Happy birthday my lovely daughter have your 3k tax free.
Then pay every bill she has to get below 16k.

https://www.gov.uk/inheritance-tax/gifts#:~:text=Annual%2520exemption,%C2%A33%252C000%2520between%2520several%2520people.

Gifting that sort of money would be deliberate deprivation of assets, the £3k exemption (it is not a limit or allowance) is for IHT purposes only.

Being aged 92 the OPs mother is likely to be on an indefinite assessed income period which would mean she dose not actually have to declare a change in the amount of savings you have.

Keep_pedalling

Has your mother put lasting powers of attorney in place? If not that is something she really should do as a matter of priority.

Krakkkers

Keep_pedalling said:

Has your mother put lasting powers of attorney in place? If not that is something she really should do as a matter of priority.

Yes she given that to my brother and sister. None of us has any experience of the benefit system so we are a bit lost.

Brie

maybe you want to have one of you joint on the account?  that might change how the council looks at things?  

nothing the matter with giving some small gifts to children/grandchildren.  A small amount at each birthday or Christmas won't trigger any issues with dep of assets.  

Emmia

If you want a physical branch, which ones are actually available in your local area? That's going to be the determining factor. 

No point applying for an account at Nationwide/Halifax/Barclays/HSBC if the nearest branch is 50 miles away.

elsien

Bigwheels1111 said:

Your Mum might be up a creek without a paddle.
6k or 16k effects benefits.
Depending on which ones you get.
16k limit for council tax.
Over 10k will lower or stop pension credit. Can’t find exact amounts.
No housing benefit if over 16k in savings.
She needs to spend some cash in a hurry.
Happy birthday my lovely daughter have your 3k tax free.
Then pay every bill she has to get below 16k.

https://www.gov.uk/inheritance-tax/gifts#:~:text=Annual%2520exemption,%C2%A33%252C000%2520between%2520several%2520people.

No, she needs to be declare what she has got and see if it makes any difference to what she gets. 

Pension credit may  be affected by anything over 10 K. 

Housing benefit and council tax I think varies between council so you would need to have a look on the local website, or run the figures through one of the benefits calculator such as entitled to or turn2us. 

Mum or her power-of-attorney will have signed a declaration to inform of relevant changes.


Trying to get rid of 10k to keep benefits is not okay. However old someone is.  Not aimed at the OP, but those who are saying spend spend spend. 
and don’t forget, Mum will be entitled to a single person council discount now anyway. 

On-the-coast

Very sorry for your loss. 

Take a deep breath, make sure you’ve paid for all funeral expenses etc, and paid any outstanding debts. 

Think about any sudden / necessary expenses now mum is on her own. 

Also check for any one offs (life insurance etc)
then regroup with accurate figures. 

Keep_pedalling

Brie said:

maybe you want to have one of you joint on the account?  that might change how the council looks at things?  

nothing the matter with giving some small gifts to children/grandchildren.  A small amount at each birthday or Christmas won't trigger any issues with dep of assets.  

No, it will still be her money and with an LPA in place it is not necessary.