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

westiebird2

I think the prizes belong to your Mom. Wait til u win then give to your mom & see what her response is. She will either except it or give it back to you. Premium bonds ate tax free so I can understand why they are being used. Your Mom trusts you, so do right by her!

Section62

https://forums.moneysavingexpert.com/discussion/comment/81898588#Comment_81898588

I dont see this as hiding her assets or why would O/P suggest giving the mum back winnings?

The comments about that aren't about the OP hiding the money from the mother, rather the possible perception that the money is being hidden from the authorities for tax reasons, or to avoid paying (as much) for care.

By gifting the money now the mother might think she won't have the money in her own account(s) to pay for care, or as part of her estate for IHT. But it isn't that simple. Although that might not be the intention of the arrangement, it is how it may look to the authorities because there is no other obvious reason for arranging your finances this way.

RickyAH

My council wanted to see my premium bonds when I needed council tax relief, every year they looked at them for 3/4 years. I have had them since the 1950's and 60's, never won anything in all that time, so not a great place to have money stashed away imo.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81898681#Comment_81898681

Having a low number of Premium Bonds is not really a good idea, as you can go very long periods without winning. However if you have a high number, say > £25K, you will almost certainly get some regular prizes.

MollyR

https://forums.moneysavingexpert.com/discussion/comment/81898095#Comment_81898095

I have a £1 Premium Bond - my father bought one for each member of the family when they were introduced in 1956. I have meticulously updated the address on my account with them every time I moved, but - unsurprisingly - I have never won anything from it. (Now, in an ideal world, I would have been able to remove the first paragraph of that quoted text, so that the second paragraph, to which I am replying, was visible - but…😕)

Jemma01

The moral part should be answered by the mum, her money, her profit; she's still alive to answer. Just because you invested it, doesn't mean you have any rights to the winning amount. That's stealing, unless she explicitly consented (which doesn't sound like she did, or otherwise you wouldn't be asking).

Frogletina

https://forums.moneysavingexpert.com/discussion/comment/81898737#Comment_81898737

I was very lucky when I first bought premium bonds.

I bought £100 worth and won £50 not long afterwards. A couple of years later I bought £200 worth and won another £50 after a short time.

My luck didn't stay as good after I bought the maximum amount of bonds. I used to win most months but could have got more in a savings account.

I now have reduced my holding and last month was disappointed not to have won a single prize

meknowalot-51

Untill your mum passes i would say that all winnings should be given to her,unless she has instructed differently.

Ed264

I was going to suggest asking your mother (if she's able to make such decisions) but someone else has already suggested that. Nothing further to add, I'm afraid!

Antleshow

Without knowing how much your mum has given you to pass on to her friend, and what her motivation was behind the request, all the answers here are somewhat hypothetical; the better question would be, has your mum made a will? This would be the preferred way to make a bequest to a friend, her will should be reviewed regularly to ensure the amount of the bequest is still reasonable, given any changes in her circumstances, and amended accordingly.