Money Moral Dilemma: I've put my mum's money into Premium Bonds - who gets the prize if it wins?

MSE_Kelvin

This week's MoneySaver who wants advice asks…

My mother has given me a sum of money to pass on to a friend of hers after she passes. I've put it in Premium Bonds to keep it safe until the time comes. If there's a win, big or small, should it go back to my mum, kept to give to her friend, or should I keep it?

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Nasqueron

Why doesn't your mum have the money and put it in premium bonds? Is she trying to avoid IHT by gifting it to bypass the estate and taxes? There is always the risk with gifts and someone passing before the period of potential liability ends.

For the specific question I would simply say that you should tell her and see if she offers to let you keep the money or invest it in more bonds

eskbanker

Ask your mother.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6656725/money-moral-dilemma-i-039-ve-put-my-mum-039-s-money-into-premium-bonds-who-gets-the-prize-if-it-wins

Why has Mum given the Child the money to look after and pass to the Friend when the time comes?

Why doesn't Mum either just give the money to the Friend, or keep the money and pass it to the Friend in the Will?

Albermarle

If the bonds are in your name, then legally any winnings will be yours. What you decide to do with them would be your decision.

Unless you are very lucky and keep them for decades, the chance of a big win is pretty small and the chance of a very big win, infinitesimally small, so not worth thinking about.

Brie

If the bonds are in your name have you considered the complications if you should die or otherwise become incapacitated? Will someone know that the money is destined for the friend? If you need care from the council that money will be considered yours when they assess your assets. If you die it will be part of your estate and go to whomever your beneficiaries are.

friolento

On top of the potential IHT implications and the minefield of legal ownership of the money (incl any winnings), there is also the potential of Deprivation of Assets.

It's not so much a question of moralities but more a question of legalities.

Middle_of_the_Road

https://forums.moneysavingexpert.com/discussion/6656725/money-moral-dilemma-i-039-ve-put-my-mum-039-s-money-into-premium-bonds-who-gets-the-prize-if-it-wins

Do the authors of these 'dilemmas' ever reply to all these comments, or even see them?

jimjames

They seem to be looking at the wrong moral dilemma. Income isn't the issue, giving away capital is the bigger one

PixelPound

https://forums.moneysavingexpert.com/discussion/comment/81897691#Comment_81897691

True, people don't realise how much is needed to get winnings. Full £50k you get them most months, under £10k and you are looking at possibly once a year. Go down below £5k and there will be years that you don't win anything.

Unless you are very lucky.

elsien

https://forums.moneysavingexpert.com/discussion/comment/81897780#Comment_81897780

Sometimes yes someone comes on and explains they are the original person asking the question and they clarify some of the details. Doesn’t happen very often though.