Loaning Money

Angusjon

Hi,  I've just sold my house and need to distribute money in several places.  I was wondering could I send my children £85k each to hold for a short while until my new house sell goes through...2 months time?  I totally trust my children but don't want their to be any implications for them.
many thanks

Rodders53

Angusjon said:

I've just sold my house and need to distribute money in several places.  

Why? 

You have FSCS protection for up to 6 months and then NS&I are unlimited (Govt protected).

Temporary high balances | Check your money is protected | FSCS

JGB1955

Angusjon said:

Hi,  I've just sold my house and need to distribute money in several places.  I was wondering could I send my children £85k each to hold for a short while until my new house sell goes through...2 months time?  I totally trust my children but don't want their to be any implications for them.
many thanks

Possibly unnecessary?  The FSCS will cover your house proceeds of up to £1M for six months under the 'temporary high balance' rule.

MyRealNameToo

Angusjon said:

Hi,  I've just sold my house and need to distribute money in several places.  I was wondering could I send my children £85k each to hold for a short while until my new house sell goes through...2 months time?  I totally trust my children but don't want their to be any implications for them.
many thanks

What implications do you think they would have? 

If any are on means tested benefits then those would be impacted. Presumably they'd keep any interest they earn on the monies so whilst they may have to pay more tax on savings interest that will be more than offset by the increase in interest. 

ManyWays

As others have said this is unneccessary. It will also complicate buying the next house as your children will have to explain to your soliciator why they are giving you this money and that they wont have any interest in the house.

And however much you trust your children, if one of them dies or has a major accident and can no longer manage their money, it could take a very long while to get this sorted out. Of course that is a very low risk, but there is no need at all for you to take any risk with this money 

Angusjon

OK, so I won't give my children any money...fair point.  So are you saying that my money in my account at the moment will be safe and insured for at least 6 months...that will be perfect...relieved, thank you.

FrugaiMacDugal

Angusjon said:

OK, so I won't give my children any money.

If you're getting a whack of money from a house sale and want to save on IHT, you can gift £3000 a year, and £3000 from last year if not already used, don't be mean, give to the kids.

Grumpy_chap

FrugaiMacDugal said:

Angusjon said:

OK, so I won't give my children any money.

If you're getting a whack of money from a house sale and want to save on IHT, you can gift £3000 a year, and £3000 from last year if not already used, don't be mean, give to the kids.

I don't think the OP was ever actually talking about gifting money to the children.  The whole thread seems to be related to protecting the money from the house sale against failure of the bank (balance above the FSCS limit) by placing some of the money in accounts in the children's name so increasing above the normal £85k threshold.  As others have explained, that is all unnecessary because of the short term balances rules under FSCS.  The OP will require the money that is on deposit to purchase their next home in a few months.