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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:
Original poster
Sleepyhungryfattyanddoc · 28/07/2021 23:20

[quote UnbeatenMum]@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.[/quote]
I don’t actually know if it’s an ISA,
I’ll ask

OP posts:
Original poster
Sleepyhungryfattyanddoc · 28/07/2021 23:22

@Galassia

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.

That’s quite dramatic though isn’t it? To go to a bank and complain about fraud. On FIL who we get on very well with otherwise.

That’s why I’m trying to figure out if this is an issue at all. Because I don’t know if I / we should care at all.

OP posts:
Original poster
Sleepyhungryfattyanddoc · 28/07/2021 23:27

@Cyw2018

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.

Thank you, FIL doesn’t even have a will!

I suppose if we had a change in circumstances we could just ask FIL to withdraw the money at that point?

And it’s better for FIL if there’s no care home fees so I will look petty if that’s my issue

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General money
Weebleweeble · 29/07/2021 07:41

And it’s better for FIL if there’s no care home fees so I will look petty if that’s my issue

Why pay for your care home fees when you can get other tax payers to - good point OP.

MrMeSeeks · 29/07/2021 07:49

If you had a change in circumstances and transferred the money the dwp would certainly ask about the sudden loss of money..

Flossie44 · 29/07/2021 07:58

My ex fil did this too. Was an inheritance thing. Also meant that if he went into a care home, his assets wouldn’t be hit for paying the fees.

girlmom21 · 29/07/2021 08:14

Of course DP doesn't think it's worth the hassle, because when his dad dies it's still going to be DP's money, and it's money he won't have to share with his siblings.

RevolutionRadio · 29/07/2021 08:34

You couldn't just give away 20k so that you can claim benefits. It'd be seen as deprivation as technically it's your husband's money.

Flossie44 · 29/07/2021 08:37

My fil did it for years. While he was working etc. So would put some of his wages away into my exh account. By the time he’d retired and fairly ill health, the money had built significantly

saraclara · 29/07/2021 08:47

I honestly don't see how it's any of your business. It has no tax implications for you as an individual, and you have no right to say what should happen to the account.

TwoLeftSocksWithHoles · 29/07/2021 09:55

@saraclara
Actually if it is for the purpose of tax or health care cost avoidance it has implications for all of us, as the remaining tax payers have to cost the costs.

Blossomtoes · 29/07/2021 10:01

[quote TwoLeftSocksWithHoles]@saraclara
Actually if it is for the purpose of tax or health care cost avoidance it has implications for all of us, as the remaining tax payers have to cost the costs.[/quote]
There won’t be any tax avoidance on the interest from £20k, at current interest rates it’s pence. And isn’t some of it in an ISA anyway? It’s 15/20 weeks of care home fees so hardly of any significance.

I’d forget it, OP, it’s not your circus.

BeaBeaBuzz · 29/07/2021 10:07

You couldn’t just move it if you needed to claim benefits. It would be deprivation of assets.

timeisnotaline · 29/07/2021 10:07

The problem is not that your fil opened and is using these accounts, the problem for you is that your dps tax return is fraudulent if it doesn’t include these. My dh would know I was not and would never be ok with him committing tax fraud, he has to include interest and share income in his tax return. Plus your dh would get the cgt cost if the shares were sold, assuming they are over the threshold.

DoormatBob · 29/07/2021 10:20

Does this account not appear on your DPs credit report?

The money is surely legally your DPs, when FIL passes this will not be part of his estate so no one would necessarily know about it.

When did he last pay into the account?

Does having this amount of money (that you can't access) affect you? As long as you aren't being inadvertently fraudulent because of it then not really your problem.

ineedaholidaynow · 29/07/2021 10:32

How is FIL able to spend the money or sell the shares, they aren’t in his name? If he withdraws the money, surely he is committing fraud.

If there are other siblings is your DH the golden child, so trying to avoid giving money to them

You need to get FIL to make a will and get a POA whilst you are about it

MadinMarch · 29/07/2021 15:32

I think there's lots of incorrect advice on here, and there's not anything neccessarily fraudulent about this situation .
You'd need much more information about the account, the amounts paid in and when they were paid in, to make a judgement.
I would say that your DH almost certainly knows about it's existence as he would have had to open the account himself. Having done that, there's nothing wrong with a father putting money into an account as a long term savings scheme. Many parents do this for their children even when they're adults. There's nothing illegal about it especially if it's in an ISA that's not taxable anyway.
I doubt FIL is able to withdraw money from it though.
For all we know, fil may have other accounts for his other children too.
This account wouldn't be included in a will, or neccessarily subject to inheritance tax (depending on how long before death it was gifted) as it's not fil's money- it belongs to the account holder.

ineedaholidaynow · 29/07/2021 17:05

But @MadinMarch the FIL is saying the money is his not OP's partner's money and he is not intending to gift it. Yes it is common for parents to pay into accounts for their children, my MIL has for our DS, but it is DS's money not MIL's. If the account is in the partner's name not FIL then it has to be the partner's money

MadinMarch · 29/07/2021 21:18

@Ineedaholidaynow
Yes, I get that, but the son (partner) must have been involved inthe opening of the account.
I think there's some agreement here, however tacit, that if fil drops down dead soon thn son gets it without it incurring inheritance tax. However if Fil lives for many more years and needs the money for his own use, then the son (partner) would accept this.
Sounds fairly reasonable financial planning to me, so long as it's in an ISA

Original poster
Sleepyhungryfattyanddoc · 31/07/2021 10:54

@Weebleweeble

And it’s better for FIL if there’s no care home fees so I will look petty if that’s my issue

Why pay for your care home fees when you can get other tax payers to - good point OP.

That is clearly not my opinion, since I’m here and concerned about the issue.

But if I respond to loved family members in the same way you’ve responded to me it’s unlikely to achieve much.

Thank you for the sarcasm though, it was both justified and helpful

OP posts:
Original poster
Sleepyhungryfattyanddoc · 31/07/2021 10:55

@girlmom21

Of course DP doesn't think it's worth the hassle, because when his dad dies it's still going to be DP's money, and it's money he won't have to share with his siblings.
I 100% believe that if this happened DP would transfer an equal share to all of his siblings, if anything he would be more likely to give them more than he has
OP posts:
Original poster
Sleepyhungryfattyanddoc · 31/07/2021 10:57

@saraclara

I honestly don't see how it's any of your business. It has no tax implications for you as an individual, and you have no right to say what should happen to the account.
Thanks This is what I was trying to find out If when DP and I are married, this has no impact on me/us whatsoever And FIL is happy and DP doesn’t care Then I won’t bring it up with them again.
OP posts:
Disfordarkchocolate · 31/07/2021 10:58

It could impact on tax so I'd be wanting to know how that get handled. It will also show up when you apply for a mortgage and they will want to see bank statements and know where the money has come from. He definitely needs to discuss this with his Dad sooner rather than later. Mortgage rules are much more stringent that they used to be.

Original poster
Sleepyhungryfattyanddoc · 31/07/2021 11:01

@timeisnotaline

The problem is not that your fil opened and is using these accounts, the problem for you is that your dps tax return is fraudulent if it doesn’t include these. My dh would know I was not and would never be ok with him committing tax fraud, he has to include interest and share income in his tax return. Plus your dh would get the cgt cost if the shares were sold, assuming they are over the threshold.
Dp doesn’t do a tax return - he has no need to So it wouldn’t be fraudulent I can’t see that 20k is making enough interest that he needs to declare it? Or am I misunderstanding
OP posts:
Original poster
Sleepyhungryfattyanddoc · 31/07/2021 11:05

@ineedaholidaynow

How is FIL able to spend the money or sell the shares, they aren’t in his name? If he withdraws the money, surely he is committing fraud.

If there are other siblings is your DH the golden child, so trying to avoid giving money to them

You need to get FIL to make a will and get a POA whilst you are about it

Dp NOT the golden child But now I think about it probably the only one who wouldn’t just take the money out and use it themselves

He has online banking for the account. Again we are obviously not about to go to the police and report an old man for fraud on that amount of money

OP posts: