Safeguarding large sum of money
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wizzywilc
Posts: 73 Forumite
A relative in his twenties is due to inherit over £500,000. He is intelligent and has mental capacity. However he has little experience of managing money, a trusting and generous nature, and mental health problems. He feels at risk of financial exploitation, and of making foolish decisions and wants to do what he can to safeguard himself against this risk.
He will need regular access to money for living expenses, so arrangements shouldn’t be too cumbersome. He could possibly grant a power of attorney, or hold money in an account which requires two signatures. Does anyone have experience of, or advice on, suitable arrangements?
He will need regular access to money for living expenses, so arrangements shouldn’t be too cumbersome. He could possibly grant a power of attorney, or hold money in an account which requires two signatures. Does anyone have experience of, or advice on, suitable arrangements?
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A relative in his twenties is due to inherit over £500,000. He is intelligent and has mental capacity. However he has little experience of managing money, a trusting and generous nature, and mental health problems. He feels at risk of financial exploitation, and of making foolish decisions and wants to do what he can to safeguard himself against this risk.
He will need regular access to money for living expenses, so arrangements shouldn’t be too cumbersome. He could possibly grant a power of attorney, or hold money in an account which requires two signatures. Does anyone have experience of, or advice on, suitable arrangements?
Wrong forum - this is DISABILITY money matters !
You have assumed that he is capable and money conscious0 -
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OP the best way to go would be for him to get some legal advice.0
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I wasn't sure which board to put my query on, and placed it here because I thought there might be people using this board who would have relevant experience. If anyone can suggest a more suitable board I will re-post. The person in question is disabled, as recognised by eligibility for PIP.
Thank you Sunny Intervals for some helpful suggestions.0 -
Paying an IFA to manage the money would not be a bad idea. Lots of financially-savvy people do this because they don't want the hassle of day-to-day management of a portfolio of investments, or they think a professional will do it better than they can.
A professionally-run income portfolio will produce a steady stream of income that your relative can live off, and the capital would still be available for emergencies. Having to ask the portfolio manager to release any capital would allow the manager to check the reason why the money was needed and step in if your relative appeared to be being taken advantage of.
The amount of income can be adjusted at short notice, if your relative finds that they have underprovided for their needs.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0 -
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