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Original poster

To ask for help with financial pickle

880 replies

ShoebillStork · 19/06/2021 18:11

In 2009 FIL had a win on the Premium Bonds. He gave us £10,000 to invest for DS (at low risk) and the money to be given to DS when he's 18.

I put the money towards a loft conversion. DS is 18 soon and I'm due to remortgage for a better rate. How much do I need to release for him so he gets the £10k plus what it might have gained in interest since 2009.

And should I encourage DS to get a Help to Buy ISA with it?

OP posts:
Bard6817 · 23/06/2021 17:08

@sunglassesonthetable Yeah, therein likes the get out of jail free card, FIL isn’t on speaking terms and the son probably thinks it’s a good deal. End of story.

We are different, but that’s a good thing, life would be boring if we were all the same and agreed on everything. :)

Thehouseofmarvels · 23/06/2021 17:08

@bythemillpond I do not know his name or contact details. My Uncle has talked about him so little that none of my family know what he is called. I plan to extract his name from my aunt but I would not have the faintest clue how to get hold of him.

evilkitten · 23/06/2021 17:10

She's holding the money in trust, not acting as a banker. She is a trustee, the child is beneficiary If it worked as you suggest, then there'd be all sorts of horrible tax implications.

sunglassesonthetable · 23/06/2021 17:15

the son probably thinks it’s a good deal.

Yep, because he experienced the deal up close and personal.

It afforded him the possibility of giving of his own bedroom and bathroom that he didn't ever have to share with DSS.

Bard6817 · 23/06/2021 17:16

@ShoebillStork

I also spoke with a CPS lawyer last night over a drink who confirmed my suspicion that it would be an offence tbey would prosecute if there was a complainant and enough evidence eg. financial record. I won’t bother going into the detail ...

because you are a complete fantasist. I on the other hand was having dinner last night with Sir Keir Starmer who assured me as a former Director of Public Prosecutions he would never have entertained such a case ...

Stork, not everyone behaves like you, some of us are actually honest and at its core that’s what this thread is actually about.

If you wish to test it, PM me your name and address and i will make the crime report.

No….. Thought not.

sunglassesonthetable · 23/06/2021 17:23

, some of us are actually honest and at its core that’s what this thread is actually about.

Nah that's bum.

ChequerBoard · 23/06/2021 17:24

Oh @Bard6817 what a lot of utter nonsense you do spout!!

Thehouseofmarvels · 23/06/2021 17:30

@bard6817 part of me does wonder if my uncle thought he could give the money to my aunt and cousin quietly in his will or find some other way to give it to them. He does not bother with anyone except them and us who he politely tolerates for a once per year duty visit. My aunt would never come without him. I do not think he can legally but he probably wondered if he could do it with out anyone finding out. HMRC chasing him is not helpful I would imagine. He told my brother he is personally liable for 45 percent tax on profits or something. This was a life insurance policy of my brother thinks a few hundred thousand ( this is a guess) invested 30 years ago. He says his daughter died of ' brain inglamation' but she died in the bath and had a drug problem. Well he insists that she was clean at the time she died but hmmm. He is currently trying to find out how to sever his tax lianlity but he is the only trustee so who does he think is going to pay the tax ? I would tell his grandchild the truth if I even knew his name or how to get hold of him.

Bard6817 · 23/06/2021 17:45

@Thehouseofmarvels so assuming 8% growth, it’s about £2million now, assuming it was in a tax wrapper and exempt from CGT.

45% doesnt ring any bells for what wrapper it’s been in, CGT is lower, SIPP lifetime allowance is higher, however it does sound like an income tax band. If that’s the case, and somehow he has managed to get investment returns processed as income, that’s very worrying and nearly impossible to get out of. Of course HMRC penalities can mount up so that may be the reason why it’s so high. Scary. I hate to suggest this, but has he been using the funds himself, and thus incurred the 45% tax and if so, yes, it’s a personal liability….

Thehouseofmarvels · 23/06/2021 17:49

@bard6817 while my parents do not think we should involve ourselves in any way as it is none of our business, my uncle is 84 in january, and mum is aunts only family. My aunt has not done anything financial for 25 years. My cousin is early twenties and hoping to move abroad. Essentially if the only trustee, my uncle, dies then HMRC could chase his estate, esentially my aunt. Mum is virtually certain she does not know as she would have mentioned it to mum and of course does not see it as her business to tell her so she will get a fun surprise when he dies.. and will doubtless come running to mum to sort it all out.

Thehouseofmarvels · 23/06/2021 17:53

@bard6817 their lifestyle has not appeared to be beyond their means so I could not say if he has spent any. Spent the lotI doubt but I suppose he could have dipped into it. My brother thinks he sees it emotionally as his due to being controlling with an anoying legality attatched that means the law thinks the money is not his.

Bard6817 · 23/06/2021 17:54

@Thehouseofmarvels

Caveat - if he has been drawing on it, it will
obvs not be £2m.

Yeah, steer clear of at all possible, it’s essentially criminal as well as tax evasion, and the last thing you want is any question over anything that’s been given to you and your family over the years, proceeds of crime etc. Although thankfully it sounds like him being ‘tight’ may have been a good thing.

Thehouseofmarvels · 23/06/2021 17:57

He told my aunt he did not want her to drive as the was a bad driver. She obeyed him and has not driven in 25 years. Mum says she has said she would never drive again because she is a bad driver and has no confindence to drive. They do not seem to have worked out that at 83 and a half and with athuritus in his feet my uncle may need to give up driving one day. Knowing how he hates to loose control it will probably be after a bad accident.

Bard6817 · 23/06/2021 18:02

@Thehouseofmarvels

He told my aunt he did not want her to drive as the was a bad driver. She obeyed him and has not driven in 25 years. Mum says she has said she would never drive again because she is a bad driver and has no confindence to drive. They do not seem to have worked out that at 83 and a half and with athuritus in his feet my uncle may need to give up driving one day. Knowing how he hates to loose control it will probably be after a bad accident.
“facepalm” accident waiting to happen.

We’ve gone off topic, which is a bit naughty, but if you want to chat more, PM me, and we can let this OP continue their thread.

Thehouseofmarvels · 23/06/2021 18:09

@bard6817 yes I think I am derailing! How would I go about sending a message on the phone version ? I am temporarily without a laptop. I apreciate your offer. I suspect that my uncle is headed for a litteral and financial car crash and I understand that my family want to stay out of it but knowing my aunt is going to have a horrible time if he suddenly dies is not fun. Especially if we know things she does mot know.

Felifox · 23/06/2021 18:11

It's simple, ask the bank what £10,000 invested on a low risk account. Sounds as though ds has got his head screwed on with his airbnb idea. Who has to pay the tax on it though?

Bard6817 · 23/06/2021 18:31

[quote Thehouseofmarvels]@bard6817 yes I think I am derailing! How would I go about sending a message on the phone version ? I am temporarily without a laptop. I apreciate your offer. I suspect that my uncle is headed for a litteral and financial car crash and I understand that my family want to stay out of it but knowing my aunt is going to have a horrible time if he suddenly dies is not fun. Especially if we know things she does mot know. [/quote]
Top right hand corner of this page, and i’ve sent you one.

Sadiecow · 23/06/2021 18:58

It's simple, ask the bank what £10,000 invested on a low risk account. Sounds as though ds has got his head screwed on with his airbnb idea. Who has to pay the tax on it though?

The bank would laugh at this! You think they're going to go back 10 years to work this out?

What tax?? So you think that either DS or OP should pay tax on a hypothetical investment?

Hey HMRC I didn't invest this money, but I should've so can I pay you some tax?

Sadiecow · 23/06/2021 19:10

@Bard6817 don't speak to CPS lawyers over a drink, it leans to complete misunderstanding clearly!

Stick to water!

Rosegoldfan · 23/06/2021 19:28

@Sadiecow

It's simple, ask the bank what £10,000 invested on a low risk account. Sounds as though ds has got his head screwed on with his airbnb idea. Who has to pay the tax on it though?

The bank would laugh at this! You think they're going to go back 10 years to work this out?

What tax?? So you think that either DS or OP should pay tax on a hypothetical investment?

Hey HMRC I didn't invest this money, but I should've so can I pay you some tax?

Think they meant on the Airbnb income.

Agree through it's laughable to ask the bank when compound interest calculators and market history are readily available. Laughable as it's hard to even get into the bank it call them about an actual account at the moment.

Sadiecow · 23/06/2021 19:29

*leads

Sadiecow · 23/06/2021 19:30

Ahh @Rosegoldfan yes possibly, it's the Airbnb income. But agreed about asking the bank to work it out!

Bard6817 · 23/06/2021 19:35

[quote Sadiecow]@Bard6817 don't speak to CPS lawyers over a drink, it leans to complete misunderstanding clearly!

Stick to water! [/quote]
Depends on how many drinks in perhaps. :)

I can barely spell, but apparently our courts are quite hot on breaches of fiduciary duty when there is fraud. Something to do with being one of the most trusted financial locations around the world (despite our tax regime) and indeed even the americans hold significant propertions of their billions in the uk, because of our laws, and why so many family banks locate here. 3,500+.

I believe i responded with ‘another drink?’.

I fancy one now as it happens. :)

Talkwhilstyouwalk · 23/06/2021 19:41

Wow....well I'd probably give him a lot more than the going rate or else I'd be feeling very guilty for spending his money in the first place, it wasn't yours to spend regardless of how you spent it 'benefits' him. So £15k?

Sadiecow · 23/06/2021 19:42

I can barely spell, but apparently our courts are quite hot on breaches of fiduciary duty when there is fraud. Something to do with being one of the most trusted financial locations around the world (despite our tax regime) and indeed even the americans hold significant propertions of their billions in the uk, because of our laws, and why so many family banks locate here. 3,500+.

GrinGrinGrinGrinGrinthe best hyperbole ever seen on MN!

This statement makes this thread a complete classic!!