What to do with my money?

rizla01

Hi all.

Prob an age old question but . . .

I recently moved house and into something more than adequate for my needs, where me and the wife will be happy to see our lives out - both mid 70's.

This has left me with a few 100Ks to invest wherever I can (horrible task) but that is not the concern.

Due to a mental breakdown some years back my Daughter lives on Universal Credit whilst living with her youngest Daughter in a Council House. She doesn't work, therefore and is also mother to two other daughters, both unmarried Mums.

I personally have no desire to travel the world or buy a AC Cobra, so all I can do is watch the money grow - but I will be dead soon enough, so what then?

Leaving the house aside, as wife might like to use it for a while :) the inheritance of my savings alone will be enough to stop My Daughters U.C. payments, so my money may as well be set light to.

I realise I can gift £10k each year but that amounts to not a lot.

Even drawing funds and putting it in a shoebox (loses interest but better than the Gov taking the lot) seems an option but thats a bit of a responsibility for her.

Does ANYONE have any sensible suggestions as to what could be done to preserve my hard earned?

Thanks

jaybeetoo

Talk to a solicitor. There is a way to have money in trust for your UC daughter. It can be used for buying things for her, e.g. a washing machine, car, without it stopping her UC. You do need professional advice though.

eskbanker

I realise I can gift £10k each year but that amounts to not a lot

Where do you get that figure from?

Even drawing funds and putting it in a shoebox (loses interest but better than the Gov taking the lot) seems an option but thats a bit of a responsibility for her.

Depending on exactly what you're suggesting, that sounds suspiciously like concealing assets while continuing to claim benefits or underdeclaring the value of an estate for IHT calculations, either of which would of course be fraud…

Sam_666

Pay for professional advice, not solicitor but IFA.

Newly_retired

why shouldn’t your daughter inherit the lot? It will transform her life. She can always reclaim UC later but the amount should last a fair while

Middle_of_the_Road

The allowable annual gift to a child is £3,000.. additional gifts have their own limits. Se link below:

https://www.gov.uk/inheritance-tax/gifts

Brie

Hopefully you and your wife will live long healthy lives but should that not be the case and health concerns start you may find that you need the money for your care. Assuming you have £200k and should you both go in to care then that amount might last just over a year if you were in very modestly priced care homes. So I wouldn't be too quick to give it away. Granted you would have your current home to sell as well.

strawb_shortcake

Can you not just help your Daughter with living costs to help make her life easier i.e. bills, new white goods/furniture as needed, perhaps a holiday?

I realise I have assumed your Wife is also the Mother of your child which may not be the case.

But can your assets not pass to your Wife and then your Daughter on your Wife's passing - will your wife have need of financial provision as a widow?

Then your Daughter has a paid for home and can live off your remaining savings and no longer be dependent on UC

thegreenone

I would be tempted to keep the money safe in your name for the moment. Work out what you will get in interest each year and use it to pay for things for your daughter, granddaughters and great-grands.

Holidays

Holiday clubs, childcare provision, before and after school clubs

Driving lessons

Cars and insurance

Prom outfits and transport

The list is endless.

I hope these would be classed as gifts and would not affect anyone's benefits.

rizla01

https://forums.moneysavingexpert.com/discussion/comment/82071716#Comment_82071716

Seems the most sensible suggestion taking everything into account.

Wifey is not her Mum but that only delays things till she goes, then 50/50 split should hopefully enable my Daughter to buy a small home/flat.

kimwp

If you have enough for you, then buy your daughter a house outright, she'll still get help with bills etc, just not housing benefit.

Nb, I do object to you saying that "inheritance of my savings alone will be enough to stop My Daughters U.C. so my money may as well be set light to." UC is for those without resources, and is provided by those with resources, who also have to provide for themselves. Why is your daughter using her own resources (albeit inherited from you) any different to another person paying their own bills? It's not being set light to, it's being used to pay your daughter's way.