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Original poster

FIL has bank accounts in DPs name

80 replies

Sleepyhungryfattyanddoc · 27/07/2021 15:24

I’ve just found out my FIL has 2 bank accounts and also shares in my DPs name

It’s not a huge amount of money, we aren’t rich, but FIL is in his 80s and a serious saver!
I asked why he’d done it in Dps name instead of his own and he didn’t really have an answer, but apparently he’s had the accounts and shares about 10 - 15 years. - he is not intending on gifting us the money though (not that I’d expect him to!!) it’s very much his money just saved in DPs name - for some unknown reason

I raised it with DP (who also didn’t previously know) but he said he didn’t really care enough to bother starting an argument as it doesn’t matter to us, but I can’t shake the feeling that it does!

DP and I are getting married in 6 months
So Will this have an impact on us at all?
I am Self employed - Will this effect my tax as it’s income we aren’t declaring that’s technically earned by our household? Will it effect our credit or insurance or anything else? Or should I just shut up and stop making a fuss

OP posts:

UnbeatenMum · 27/07/2021 16:14

Just seen it's about 20k in cash so that's unlikely to have been a problem but shares could easily have doubled in value in 10 years.

Galassia · 27/07/2021 16:14

I think the best thing to do would be for your husband to transfer the money from the accounts in his name to an account in his fathers name and close them when it’s done.

If the father doesn’t agree to this then tell him that you will go to the bank and say the husband did not open these accounts.

BornIn78 · 27/07/2021 16:18

Could work out ok for you OP, you know about it now so in the event that your marriage goes tits up, or if your DH passed away, it forms part of his ‘estate’ so some or all of it will come to you and FIL wouldn’t be able to say “but wait, it’s actually mine”.

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General money

JackieCollinshasnoauthority · 27/07/2021 16:19

Spend it.

thefourgp · 27/07/2021 16:23

When he passes they won’t form part of your FIL’s estate. They’ll belong to your husband. It’s highly probable that’s going to result in a family fall out - even if your husband shares with his other siblings. He says he’ll spend it so why hasn’t he since they were opened. As others have said, probably an inheritance tax dodge and neither of them want to admit it.

Weebleweeble · 27/07/2021 16:24

Is there avsolicitor who DF used for a will? I would speak to them, it needs sorted.
If DF passes away will his siblings be happy that DF has his money stashed in his (DPs) name. Will they think DF has given him money over the years but not them. Does DP know where the money came from? He might have the tax man after him once it comes to light? He will need to prove it's legit. I would get it sorrrd now.

BornIn78 · 27/07/2021 16:26

FIL says he’s going to spend it? Aye right. He’s had this money for 10-15 years and he’s in his 80’s, what’s he waiting for?

I think your DP knows all about this.

unsureofneighbour · 27/07/2021 16:31

As others have said, probably an inheritance tax dodge and neither of them want to admit it.
It's very unlikely given the amount.

minniemoll · 27/07/2021 16:34

My late husband's father (to whom I wasn't close, he lived a long way away and I only met him a handful of times) had accounts in all three of his children's names, to keep him under the threshold for benefits.

When my husband died, his dad made a big thing of phoning and telling me that he'd decided to give me the money but there was basically no way I was going to give it to him - the account formed part of my husband's estate and that was the end of it so far as I was concerned. I had great fun spending that money! Serves him right for trying to dodge his benefits.

TheABC · 27/07/2021 16:35

It's either an inheritance dodge or FiL is using DP's ISA tax allowance. However, if your DP is not going to do anything about it, I don't think you can.

Hoppinggreen · 27/07/2021 16:37

How is a FIL going to access it?
Presumably he will need some sort of signature or something from yiur DH?
There may be fraud involved and your DH needs to be careful not to be complicit

ThreeWitches · 27/07/2021 16:41

@minniemoll

TwoLeftSocksWithHoles · 27/07/2021 16:43

I wonder how FIL opened the accounts, we needed all sorts of ID information to open an account about 10 years ago

I was also led to believe that banks were obliged to pass information to HMRC for accounts where the balance was over a certain amount.

Oblomov21 · 27/07/2021 16:44

I too wonder how he opened the accounts? Mind you things were not as tight, at banks, many many years ago.

Cyw2018 · 27/07/2021 16:49

Potential issues that I could see are...

Inheritance tax
Probate- what does fil will state about this money
Care home fees
Personal tax issues
If you and dh ever have a change in circumstances and need to claim benefits these savings may make you ineligible.

Blossomtoes · 27/07/2021 16:53

@Fairyliz

If he’s in his 80’s without being rude he’s probably not got long to go. When he passes away as these accounts are in your DPs name they are his so presumably won’t be part of the estate for inheritance purposes?

This. And he can access them straight away. Win/win. What a wily old fox.

Mamamamasaurus · 27/07/2021 16:56

How did you even find out about these accounts?

Im with PP - DP knows about the accounts, or was completely and utterly oblivious when then were opened, he must've signed something at the time. By why is he not bothered about them now!!??

pastabest · 27/07/2021 17:00

I would imagine it's as simple as he's using DPs tax free ISA allowance, assuming that DP isn't saving in one himself.

DP was probably involved in setting it up, whether he remembers or not.

It's win win for FIL, he gets the tax advantages, it's not classed as an asset if he needs residential care and if he dies then it's automatically in DPs name anyway. Presumably he and DP have an agreement that it remains FILs money to spen as he wishes while he is still alive.

However, it does prevent DP from being able to save tax free in his own right.

ThreeWitches · 27/07/2021 17:01

DP knows about the accounts, or was completely and utterly oblivious when then were opened, he must've signed something at the time

Surely it's a possibility that he was underage though and just signed what he was told to - therefore it may well have been easy to forget about if it hasn't been mentioned since.

MadinMarch · 27/07/2021 17:04

@Unbeatenmum
Yes, there could be tax implications if the amounts are large. You can earn up to £1000 interest on savings before paying tax each year, or £500 if you are a higher rate taxpayer. The dividend allowance is £2000. When shares are sold the Capital Gains allowance is £12,300. That's 2021-2022 though, the values have obviously changed over the last 10 years.

Those limitations wouldn't apply if the account was a stocks and shares ISA, and it's possible to put 20K a year into the same account. Stocks and shares and cash can be held in the account and no tax or gapital gains is payable. However, inheritance tax will apply when the account holder dies.
Given the FIL is more likely to die before his son, it seems quite a sensible way to plan efficiently, if he was putting savings aside for his son over a number of years, or possibly helping out with funding through university.

TakeYourFinalPosition · 27/07/2021 17:12

Yes it’s probably fraud but we obviously aren’t going to report him to the police! I want to ask him to close the accounts, but DP has said it’s not worth the hassle - so I was hoping for a reason to say why it was worth the hassle

It doesn’t sound like DP wants to close the accounts… perhaps it’s a plan for inheritance tax, as others have said?

I wouldn’t have a joint account or anything with someone in this situation though.

Mintjulia · 27/07/2021 17:20

It'll have an impact if you divorce Fil could lose half the money

It sounds like an inheritance fraud. I'd be amazed if your dp had no prior knowledge. Or they could be hiding money from you. Doesn't fil trust you? Perhaps he wanted to give his son some money but didn't want you to spend it on anything frivolous.

2bazookas · 27/07/2021 17:34

He's probably hiding assets to protect them from residential care fees or IHT. Or because he's fraudulently claiming some means-tested benefit. I'm quite sure both FIL and your DP know exactly the reason and are just not telling you.

Married people are taxed separately , so DP's money won't be declared as your savings. or mentioned on your tax returns.

Marriage doesn't give either partner access to bank accounts held in the other person's name.

As DP (and his dad) are up to something shady and are not telling you what, I'd be very reluctant to hold any joint bank or savings accounts with DH when you get married. Keep your money in your own accounts, and decide together, who pays which shared bills.

UnbeatenMum · 27/07/2021 18:19

@MadinMarch no it wouldn't apply in an ISA but I had assumed he hadn't used an ISA, otherwise how did FIL know DP wasn't using his ISA allowance himself if DP knew nothing about it? You might be right though.

whatthejiggeries · 27/07/2021 18:45

I would just ignore it - nothing to do with you really and if he dies your DP gets it all

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