My MIL gave my daughter £10,000. There is sadly, due to her age, a possibility that she won't live another 7 years - though we hope she does!
The money is currently in a child's account, with me as the second name.
The best way at the moment for me to invest this for her is, I think, to offset it against my mortgage. Interest rates in savings accounts are low, and overall family finances do not allow for high risk investing. I would overpay the interest she saves me into the same offset, so her savings increase and the house she will inherit will be paid off quicker.
But I'm wondering what happens when someone dies, re inheritance tax? Who will "know" that she gave that money? And if I've moved it out of an account in my daughter's name, will it no longer have an gift to grandchild exemption?
FWIW, MIL would not mind me doing this!
Thanks, if anyone knows!