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  • FIRST POST
    • wizzywilc
    • By wizzywilc 15th Sep 18, 9:03 AM
    • 10Posts
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    wizzywilc
    Safeguarding large sum of money
    • #1
    • 15th Sep 18, 9:03 AM
    Safeguarding large sum of money 15th Sep 18 at 9:03 AM
    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?
Page 1
    • 50Twuncle
    • By 50Twuncle 16th Sep 18, 4:57 PM
    • 8,562 Posts
    • 2,024 Thanks
    50Twuncle
    • #2
    • 16th Sep 18, 4:57 PM
    • #2
    • 16th Sep 18, 4:57 PM
    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?
    Originally posted by wizzywilc

    Wrong forum - this is DISABILITY money matters !
    You have assumed that he is capable and money conscious
    • kingfisherblue
    • By kingfisherblue 16th Sep 18, 5:14 PM
    • 7,943 Posts
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    kingfisherblue
    • #3
    • 16th Sep 18, 5:14 PM
    • #3
    • 16th Sep 18, 5:14 PM
    Wrong forum - this is DISABILITY money matters !
    You have assumed that he is capable and money conscious
    Originally posted by 50Twuncle

    The OP mentioned mental health problems - are they no longer classed as disabling? Even if it is the wrong board, then you could be a little more friendly.
    • venison
    • By venison 16th Sep 18, 7:14 PM
    • 2,352 Posts
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    venison
    • #4
    • 16th Sep 18, 7:14 PM
    • #4
    • 16th Sep 18, 7:14 PM
    OP the best way to go would be for him to get some legal advice.
    Former Board Guide
    • Sunny Intervals
    • By Sunny Intervals 16th Sep 18, 9:48 PM
    • 211 Posts
    • 672 Thanks
    Sunny Intervals
    • #5
    • 16th Sep 18, 9:48 PM
    • #5
    • 16th Sep 18, 9:48 PM
    Wrong forum - this is DISABILITY money matters !
    You have assumed that he is capable and money conscious
    Originally posted by 50Twuncle
    They didn't assume anything. They are asking on behalf of someone who has stated they are not capable and money conscious and are concerned about being exploited and having poor control over their finances.





    Wizzy, the problem (if you could call it that) is that he does have capacity. My entire immediate family have issues with money because of different mental illnesses and personality traits, but we all have capacity, so we're all free to f*** up in our various fun and interesting ways.

    Has he considered something like using a long-term bond to lock most of his money away? He could also look into things like assertiveness training and spend time learning about money management/speaking to an indepdent financial advisor to better protect himself.

    My concern is that in handing control of his finances to someone else, he's going to increase his chance of being exploited. Not only because the person with the reins could do something, but because he'll never learn to do it for himself.

    I still have my weak spots, but I've been on a hell of a learning curve the last few years and I'm glad that I did it, even if I didn't make the right choice every time.
    Last edited by Sunny Intervals; 16-09-2018 at 10:01 PM.
    • wizzywilc
    • By wizzywilc 17th Sep 18, 10:11 AM
    • 10 Posts
    • 26 Thanks
    wizzywilc
    • #6
    • 17th Sep 18, 10:11 AM
    • #6
    • 17th Sep 18, 10:11 AM
    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.
    • Sunny Intervals
    • By Sunny Intervals 17th Sep 18, 12:54 PM
    • 211 Posts
    • 672 Thanks
    Sunny Intervals
    • #7
    • 17th Sep 18, 12:54 PM
    • #7
    • 17th Sep 18, 12:54 PM
    Might also want to point him to MSE. Not only is there a lot of info on the main site to help with things like utility bills and choosing savings accounts, but the forums can provide a useful sounding board.


    e.g. Handyman wants to charge him £1000 to replace a washer--he could post on the DIY forums to ask if that's reasonable/if it's something he could do himself. Or family member asks for £100,000 for their foolproof investment in mattresses stuffed with caterpillar hair--he could ask on one of the financial forums if they think that's a safe bet.


    It's not foolproof and it's not a replacement for professional advice when it comes to the really big decisions, but it introduces a "stop and think" step before making financial decisions.


    If he is determined to let someone else manage his money, though, I agree with venison--speak to a solicitor and/or an independant financial advisor with experience in this area and make sure that whatever he does will genuinely protect him.
    • tacpot12
    • By tacpot12 17th Sep 18, 2:01 PM
    • 1,380 Posts
    • 1,185 Thanks
    tacpot12
    • #8
    • 17th Sep 18, 2:01 PM
    • #8
    • 17th Sep 18, 2:01 PM
    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.
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