Grandmother wants to put £20000,in my name

mercedes125

My grandmother wants to give me £20,000 to put into some sort of savings account, so that when anything happens to her the money would already be in my name. Would she be able to do this? if so would it be better to put it in my name and her name. Im just confused as to what would be the best thing to do.
Thankyou

margaretclare

You mean she wants to give you £20,000 as an advance inheritance?

If she can afford to, I don't see why she shouldn't. It's her money after all, and one would hope that we still live in a free country!

fabwitch_2

My Mum opened a joint account in both our names for her savings, although its her money and she has the savings book. If anything happened to her I would altomatically be able to take out the money from the accounbt to save all the hazzle of going through probate. So yes your Nan can put it in your name but it would be better jointly as legally if it was solely in your name then you married or ware allready married and then you died before your Grandmother your Husband would get the money if there was no will

Gorgeous_George

It would be much better if she gave it to me to look after for her (I am not a financial adviser).





Seriously, of course she can give you the money. Just don't spend it because she may need it to pay for a care home. If she dies within 7 years, there may be a tax penalty (torygraph clicky)

GG

simpywimpy

My parents have done the same with me.

The things to look out for are
If you were to divorce, you hubby could claim half of it
If you are on benefits, it could mean you would lose your entitlement if they found out
inheritance 7 year rule as mentioned above

LongTermLurker

margaretclare wrote: »

You mean she wants to give you £20,000 as an advance inheritance?

If she can afford to, I don't see why she shouldn't. It's her money after all, and one would hope that we still live in a free country!

There is a little thing called "Inheritance Tax". I don't know the full details but I do know there are lots of rules, for example depending on if she survives for 7 years after giving the gift.

The 2008 limit is £312,000. If she leaves more than that (including her house) the dependents pay tax at 40% on the balance and it would be worth seeking professional advice, because there are ways around it.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/InheritanceTaxEstatesAndTrusts/index.htm?cids=Google_PPC&cre=Money is probably a good place to start looking.

mercedes125

Thanks for all your reply,s so obviously we could do this then as long as none of it is spent whils,t my grandmother is alive not that i would intend to do. I am on disabilty benefit my hubby works full time so would it still be ok to put into my name.

Thanks Again

LongTermLurker

mercedes125 wrote: »

Thanks for all your reply,s so obviously we could do this then as long as none of it is spent whils,t my grandmother is alive not that i would intend to do. I am on disabilty benefit my hubby works full time so would it still be ok to put into my name.

Thanks Again

There would actually be nothing to stop you spending it, but if she left another £292,000 you would pay 40% tax on everything above £312,000 if she died this year. However, if she survives another 7 years then your £20,000 would be outside the IHT limit.

If her money and property is less than £312,000 then you can ignore my comments as they wouldn't apply.