ISA / bonds / fix rate saver etc

[gazinho]

Think this has been discussed on here before but I couldn't find the thread.

Mrs Gaz's gran has had to go into a home recently she's got a few quid so is obviously being charged shitloads a week until its all gone, Mrs Gaz happened to mention this to my old dear who had an immediate panic and has transferred me and my sister a fair whack of cash each and told us to stick it in an isa or something else to not touch for a while and make interest on it, anyone got any idea of the best places about to do so at the minute?

Told Mrs Gaz I was going to spend it on cocaine hookers and waste the rest but she didnt look too happy so obviously my next thought was to ask on here

 

[Gareth Barry Conlon]

Think this has been discussed on here before but I couldn't find the thread.

Mrs Gaz's gran has had to go into a home recently she's got a few quid so is obviously being charged shitloads a week until its all gone, Mrs Gaz happened to mention this to my old dear who had an immediate panic and has transferred me and my sister a fair whack of cash each and told us to stick it in an isa or something else to not touch for a while and make interest on it, anyone got any idea of the best places about to do so at the minute?

Told Mrs Gaz I was going to spend it on cocaine hookers and waste the rest but she didnt look too happy so obviously my next thought was to ask on here

Upto 80k is insured. You can go for the top of the market but generally that's a small ropey bank, Metro nearly went bust this year as an example. A big bank will pay less but less chance of going bust. Building societies are good for rates and less risk than others

 

[blue44]

Think this has been discussed on here before but I couldn't find the thread.

Mrs Gaz's gran has had to go into a home recently she's got a few quid so is obviously being charged shitloads a week until its all gone, Mrs Gaz happened to mention this to my old dear who had an immediate panic and has transferred me and my sister a fair whack of cash each and told us to stick it in an isa or something else to not touch for a while and make interest on it, anyone got any idea of the best places about to do so at the minute?

Told Mrs Gaz I was going to spend it on cocaine hookers and waste the rest but she didnt look too happy so obviously my next thought was to ask on here

https://www.moneysavingexpert.com/savings/best-cash-isa/

 

[Scottyboi]

@SWP's back will help but he might just want to join in with the cocaine and hookers.

 

[bluesince76]

Moving the money to you to avoid care fees is unlikely to work, unless she lives for several more years before needing create. The liberal authority will see it as a deliberate attempt to avoid the fees, which it clearly is. If it gets to that stage, consider a care annuity which is basically an insurance policy where you hand over a large lump sum and they pay the fees for however long you need them. Expensive but at least there's a limit.

Ignoring that, consider Premium Bonds for ultimate security up to £50k. Money in UK banks up to £85k is covered.

If you're looking longer term (>5yrs), could look at S&S ISA which should outperform interest rates and inflation if you go for a index tracker - Vanguard Lifestyle or FTSE all world etc. There is risk, but then if the interest on an account is less than inflation you're guaranteed to lose money.

 

[heslops barnet]

Fuck the care fees……empty bank account and tell care home she’s skint, they cant demand access to bank accounts……

 

[Alan Harper's Tash]

Care home fees are ridiculous. They must make a fortune.

As has already been intimated, her money is likely to be lost now, sadly.

 

[Mr Fraser]

If your wife's gran still has all her faculties get power of attorney sorted if not done already.
If you hide money LA can come after you. Even if you have sufficient savings You can still get a type of "grant" from LA. Went through all that stuff for few years before mother died last year so I've chucked most paperwork out. Think it was FNC

 

[MCFC Wirral]

I’ve no idea but I can’t imagine local authorities will just throw money at someone claiming they have none. Aren’t these means tested at all? Refuse to provide bank statements and they may refuse to contribute?

Please let someone who knows tell you.

 

[Blue Maverick]

Would she not be better just using the money to buy stuff that you can use ;) holidays etc.

 

[Tuearts right boot]

If I remember when we went through something similar,my mum actually stayed at home with a great care package in the end but the cut of point was £23,500 in savings , anything over that they've got you.

 

[MCFC Wirral]

Everyone is different but I’d want nothing for myself until my family member is taken care of.

There’s only my mum to deal with but she struggled like nothing else to raise us solo and I’d want her in absolute comfort until she’s claimed.

If there’s anything left then I’d use it to fulfil ambitions.

 

[Alan Harper's Tash]

Everyone is different but I’d want nothing for myself until my family member is taken care of.

There’s only my mum to deal with but she struggled like nothing else to raise us solo and I’d want her in absolute comfort until she’s claimed.

If there’s anything left then I’d use it to fulfil ambitions.

It’s a scam though. If they had moved her money early enough, they could have used the money for themselves and the mum would have got help with her care costs.

As it is, care homes charge a fortune because it either fleeces the family or the council.

My gran’s care home cost £750 per week.

 

[abu13]

The care system is truly fucked, I have nothing but total respect for the carers but the companies are generally robbing bastards

 

[MCFC Wirral]

It’s a scam though. If they had moved her money early enough, they could have used the money for themselves and the mum would have got help with her care costs.

As it is, care homes charge a fortune because it either fleeces the family or the council.

My gran’s care home cost £750 per week.

I tend to find the law doesn’t have a conscience. I’m a former Court Clerk and things can be very strict.

Deceptively claiming when the money was hidden constitutes fraud.

 

[Alan Harper's Tash]

I tend to find the law doesn’t have a conscience. I’m a former Court Clerk and things can be very strict.

Deceptively claiming when the money was hidden constitutes fraud.

The scenario that the OP painted would be considered fraud, I suspect, if the money vanished.

Families should have discussions about putting houses etc. in others’ names once they hit 55 or whichever age they choose.

 

[Kompany Car]

The scenario that the OP painted would be considered fraud, I suspect, if the money vanished.

Families should have discussions about putting houses etc. in others’ names once they hit 55 or whichever age they choose.

A PPT or Life Interest Trust is the way to go. Costs about 4-5k and it doesn’t protect the whole amount, but does protect 50% of the property value and the individual still owns the house and any rental income from it. In the latter you can also place investments which the individual can still access the income from or you can leave it within the trust. There is however a cost for accessing it.

Main issues with handing the house over is that you need to do a transfer of equity which means the person who is given the house has to pay stamp duty, but is also subject to CGT on the transaction. It also doesn’t have any guarantee that the local authority won’t class it as deprivation of assets, the 7yr rule applies to inheritance tax only not the assessment for deprivation of assets.

To pass on as much money as possible without it being included for care home fees some of the other options are investment in personal assets that retain their value. Art, wine, classic/vintage cars, jewellery etc or taking out a life insurance policy. Of course the best option is to spend it before you get to the point of needing care, those fine champagnes and gambling habits are very expensive ;-). If you’re a person of means, then offshoring is also a good option.

One thing that is blatantly apparent however is that all these clever avoidance tactics are much more accessible if you are already wealthy rather than the average family.

 

[Alan Harper's Tash]

A PPT or Life Interest Trust is the way to go. Costs about 4-5k and it doesn’t protect the whole amount, but does protect 50% of the property value and the individual still owns the house and any rental income from it. In the latter you can also place investments which the individual can still access the income from or you can leave it within the trust. There is however a cost for accessing it.

Main issues with handing the house over is that you need to do a transfer of equity which means the person who is given the house has to pay stamp duty, but is also subject to CGT on the transaction. It also doesn’t have any guarantee that the local authority won’t class it as deprivation of assets, the 7yr rule applies to inheritance tax only not the assessment for deprivation of assets.

To pass on as much money as possible without it being included for care home fees some of the other options are investment in personal assets that retain their value. Art, wine, classic/vintage cars, jewellery etc or taking out a life insurance policy. Of course the best option is to spend it before you get to the point of needing care, those fine champagnes and gambling habits are very expensive ;-). If you’re a person of means, then offshoring is also a good option.

One thing that is blatantly apparent however is that all these clever avoidance tactics are much more accessible if you are already wealthy rather than the average family.

Thanks for this. Very informative.

 

[Mr Kobayashi]

If I remember when we went through something similar,my mum actually stayed at home with a great care package in the end but the cut of point was £23,500 in savings , anything over that they've got you.

That's still the figure I think as I used to work in a shared office with a loud duty social worker for adult social care who'd ask that question to clients making applications.

 

[Mr Kobayashi]

The care system is truly fucked, I have nothing but total respect for the carers but the companies are generally robbing bastards

Something central government should accept blame for as they forced local authorities to publish how much they spent, when they had plans to reform the sector. And then abandoned the reforms when they realised how much money it would require pumping in. But care costs have doubled nationally.