Accounts

MissyMoonbeams

Hi, I have a 31 year old son who has a job, flat, girlfriend but also has a drinking problem which replaced a drug habit. He has inherited a large sum of money which he wants me to look after as he knows he will just waste it.
Is there an account I can open that is his but I manage, I’m not sure he’d go for a POA so I’m a bit stumped

Flugelhorn

You could look at third party mandate https://www.natwest.com/life-moments/caring-for-vulnerable-relatives/guide-to-third-party-mandate.html - this is just one bank

presume you could get phone alerts if transactions take place so you can keep an eye on things

Keep_pedalling

How large are we talking about? 

Rather than do this he could look at putting it in a bigger property, feeding it into a pension (which he won’t be able to touch for 26 years), lock some of it away in fixed term accounts.

He obviously knows he has a problem so spending a little of this on getting professional help to get him sober might be a very good investment. 

MissyMoonbeams

He doesn’t want it locked away but realises he can’t control his spending. It’s around £40k
he wants me to control it and decide if he should have it when he asks for it, he knows he can’t ask all the time or for excessive amounts 

Olinda99

If it were me I would just open an account in my name and put the money there

When your son requests it just simply send a faster payment from that account to his account

MissyMoonbeams

That's what is happening now. I'm about to have HMRC calling for some inheritance tax and if they see £30k in there, they'll want to get their hands on it.  It needs to be in his name but he can't access it.

HillStreetBlues

If you have proof that it's not your money then having it in your account is fine

ChirpyChicken

He could buy a house with that sum..

Olinda99

MissyMoonbeams said:

That's what is happening now. I'm about to have HMRC calling for some inheritance tax and if they see £30k in there, they'll want to get their hands on it.  It needs to be in his name but he can't access it.

not sure what you mean. HMRC can't 'see' your account and if you owe IHT then all they can do is ask you to pay it and charge interest and penalties if you don't. Anyway it is the estate who pays it, not you, so.it is the estate's account they would be interested it, not yours

General_Grant

Olinda99 said:

If it were me I would just open an account in my name and put the money there

When your son requests it just simply send a faster payment from that account to his account

But, if the OP did that, taxable interest would be attributed to the OP as far as HMRC are concerned. 

flaneurs_lobster

General_Grant said:

Olinda99 said:

If it were me I would just open an account in my name and put the money there

When your son requests it just simply send a faster payment from that account to his account

But, if the OP did that, taxable interest would be attributed to the OP as far as HMRC are concerned. 

...and this is a problem why?