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

surreysaver

People shouldn't create moral dilemmas by making things legally complicated.

Keep it simple, give the money to whoever the money is meant for, and there will be no dilemma.

jimjames

https://forums.moneysavingexpert.com/discussion/comment/81898964#Comment_81898964

That wouldn't make a clickbait headline though!

JayD

Jeeze!

IF THERE SHOULD BE A WIN … and let's face it, we are talking about a hypothesis here - that would be the time to talk to your mum about it!

If your mum is unable to make that decisions at that time, reinvest it in more premium bonds.

Whatever happens, the money is your mum's until she is no longer with us.

Jemma01

https://forums.moneysavingexpert.com/discussion/comment/81899165#Comment_81899165

What happens if a win happens after she passes and before the money is handed over? Does the money go to the friend, or does OP pocket it?

The time to talk to mum about any potential changes in value is now and let her decide where her money goes. The idea of investing someone else's money without permission baffles me.

JayD

Are we really wasting time on this hypothesis?

Surely it should all go to the friend the mum had left the original sum to?

It is no known if the mum is currently able to have such discussions - especially as she seems unaware of the Premuim Bond investment..

As I said before, however you cut it, this is morally the mum's money - intended for the mum's friend. Not the OP.

Section62

https://forums.moneysavingexpert.com/discussion/comment/81899165#Comment_81899165

"Whatever happens, the money is your mum's until she is no longer with us."

That isn't legally correct though.

The money is in the poster's Premium Bond account, so is the poster's money. If the poster predeceases the mother then it will be in the poster's estate.

The mum could try to claim the money as their own (subject to what the poster's Will (if any) says) but without any documentary evidence that the money has been loaned to the poster the mum will have a real job to do so. If the money has been gifted to the poster then it belongs to the poster.

The winning (or not) of prizes isn't the main issue here… it is why the poster has got their mum's money and the basis of the transfer.

JayD

I have said in a later response that he money is MORALLY her mother's.

PixelPound

https://forums.moneysavingexpert.com/discussion/comment/81898073#Comment_81898073

Have a look at https://premiumbondsprizes.com/

For £2K you might win a prize a year, but could easily go a couple without. £20K you win a prize most months, but will go without a couple of times a year. I was talking about number of times you likely win a prize rather than whether you get near the headline rate.

If looking purely in terms of rate, PB's only seem right if you are a high rate tax payer, already max out such as your ISA, etc.

PixelPound

https://forums.moneysavingexpert.com/discussion/comment/81898876#Comment_81898876

The question is, whether this is a real situation. Most of these MMD always seem like they've been thought out by the staffers at MSE.

primrose_penguin

From your post I take it you have not told your Mum what you have done with the money she has given you to pass on to her friend after your Mum has passed away. I suggest you speak to your Mum and ask her what she wants you to do if there is a win on the premium bonds, after all it is still your Mums money at this present time and she should make the decision, also whose name have you taken the premium bonds out in, if your own are you going to cash them in when the time comes to pay your Mums friend? I cannot understand why, as someone else has suggested, your Mum has not left her friend the money in her will. If your Mum is terminally ill then why not give her friend the money now as a gift? It all sounds a bit odd to buy premium bonds when the money is not yours.