Help for my mums savings

xylophone

None of us has any experience of the benefit system so we are a bit lost.

READ ALL

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/large-print-factsheets/fs48-lp-pension-credit.pdf


Assessed Income Period  information on page 26 of above.

Krakkkers

Thanks. Will have a read of the relevant bits.

hugheskevi

A few things that might help:

• Your mother's State Pension is very likely to be recalculated. The exact details will depend on her own and her husband's entitlements, but she is likely to get a higher State Pension due to an increase to her Basic State Pension (which will be what is known as a Cat B pension) as well as maybe inheriting some of her husband's second tier pension (which will mostly be State Earnings Related Pension, or SERPS). Ensure the Pension Service know both your mother's and father's National Insurance numbers and that he has died. They will need to stop his State Pension and recalculate your mother's new entitlement. The Pension Service are very experienced at this sort of thing so can guide you through the process, including around Pension Credit.

• If your father had occupational or personal pensions, make sure the administrators know he has died so they can stop payments and put in place any survivor pensions or residual pension pots due to your mother.

• Ensure she is getting a 25% single person discount on Council Tax now

• Consider what adaptations or external support may be beneficial for your mother, eg, stairlift, downstairs toilet, support worker visits, etc. Now she is presumably living alone things will be harder - a lot of elderly couples help care for each other, even where there isn't an explicit care need.

• Use a benefits checker such as entitledto to see what things your mother may be entitled to, based on the new numbers.

• Consider if a will needs updating

sammyjammy

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.

If she gets pension credit then she gets housing benefit, no questions asked.

Krakkkers

Thanks for all the advice, its all good stuff and plenty to think about.
My mum banks with nationwide but their rates don't seem competitive although she has been getting nothing up till now so we can improve on that.

elsien

If she wants easy access the main bit of this site tends to be fairly up to date. 

Online does tend to pay higher rates, but there might be other things on there as well. 

With the caveat, that just because there’s a bank branch where she is now doesn’t mean it’ll stay.

LHW99

Consider what adaptations or external support may be beneficial for your mother, eg, stairlift, downstairs toilet, support worker visits, etc. Now she is presumably living alone things will be harder - a lot of elderly couples help care for each other, even where there isn't an explicit care need.

Which could be paid for from her savings, without being deprivation of assets, if they are something she will need to increase her safety / enable to remain in her own home longer / help her cope with things her husband used to do for her.

Does she have / need Attendance Allowance? That is not means tested.

Krakkkers

She lives in a privately rented downstairs flat, my dad had a small work pension (£80 per month) which my mum will receive half of going forward. 

Sarahspangles

Krakkkers said:

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?

When we were in this position with my MIL we realised how limited options were for people banking in person. There was no bank branch in her local town and the savings rates for a passbook account with her bank were poor. Plus we had to drive her to a branch in the next town. The best ‘in person’ option for her was a Post Office account, but all of the savings accounts they offered would need to be re-opened each year and OH would have needed to remind her.

In the end the option she went with was Premium Bonds. OH had to help her set this up but you get a physical certificate and her winnings were paid into her current account. For some reason she was more willing to spend winnings than she would have if she received interest. And from a practical point of view, PBs are easy to handle when someone passes away. They can remain invested while other things are sorted out.

badmemory

The nationwide have loyalty accounts.  Not great interest (3.75% at present I think) but anythiing over £5k in premium bonds you will need probate unless they have changed things.  Niine years ago probate was taking 2 weeks when IHT wasn't involved & now is taking significantly longer.