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Big wad of cash under the mattress

14 replies

Moneyworry · 07/08/2014 23:39

My dad passed away a few weeks ago. My mum is still here, but she never had anything to do with running the house/ finances and doesn't have a clue about anything, she is very elderly and obviously very upset.

Dad worked all his life, mum never worked, so dad had a reasonable state pension, mum has a very basic one. No private pensions. Both have/had serious illnesses. Dad had higher rate attendance allowance, mum medium rate DLA. They were ok money wise but lived very frugally.

We are trying to work our way through dads filing to put affairs in order, changing things to mums name only etc.

During this we have found almost £12k in cash in their home. I don't know (but its possible/probable) if dad had this at home so bank balance was low enough for council tax rebate, or extra DLA, or less tax or ........I don't know anything about all these things as dad managed them all himself. From the paperwork found he was only getting a council tax reduction for being over 65. Can't see anything on anything else he has which implies savings in bank would have been an issue, would savings has impacted their AA or DLA?

No idea what to do now with this money.............scared to put in bank incase it opens a can of worms........what will bank ask if I walk in with £12k in notes!

Oh Dad! What were you doing! Sad. Really don't need this worry just now as mums health is rapidly deteriorating too.

OP posts:
Lally112 · 08/08/2014 00:04

I do this, except I keep it in the gun cabinet because its locked and fireproof. In truth I fucking hate the banks. Every one of them are out to screw you over and maybe your father was just as distrusting as I am.
Charges for this, fees for that, miss selling of the other. I wouldn't put it in a bank because I don't trust them but what about a building society and do you really want it in your mums name if her health is deteriorating? Also - he saved you on inheritance tax too.

notapizzaeater · 08/08/2014 00:07

Dla isn't mean tested. Sorry for your loss.

ThatsNotWhatISaid · 08/08/2014 00:08

I am sorry for your loss Thanks

Hopefully some knowledgeable MN'ers will be along to help you with some facts about the implications of the money.

Personally, I would declare the money if that was the legally correct thing to do.

CeliaBowen · 08/08/2014 00:11

I shouldn't think a bank would be surprised by £12k in cash - people pay cash for cars all the time etc.

Inheritance tax would not be applicable in this case anyway as it is the first spouse passing away.

You could pop into your local CAB for advice. I think it is highly unlikely any can of worms will be opened.

Sorry for your loss, OP Flowers

CeliaBowen · 08/08/2014 00:12

Also, if your mum's health is deteriorating, she may need the money for her care and it will be easier for you/whoever to sort it out if it is in the bank.

sonicadventure · 08/08/2014 01:23

Sorry for your loss OP. Banks can be quite fussy about payments of cash now due to money laundering. They will probably ask where it has come from, I don't know if they'd require any proof. Presumably they will be aware of the circumstances.

www.thisismoney.co.uk/money/saving/article-2551823/Why-banks-wont-let-pay-cash-account.html

AA and DLA aren't means tested, and it doesn't sound like your parents claimed the means tested bit of council tax support either. I don't think there will be a problem there.

escape · 08/08/2014 01:50

Just been sorting out similar for my Nanna.. With regards to means tested benefits, the first 10 k 'capital' is discounted. After that, it 's incremental in regards to benefits received.. Local authorities are really clamping down. My Nan gets an extra 50 pounds a month from my Grandads private pension. because of this she now pays full council tax ( single persons discount) and less HA. If I stopped the private pension ( she'd be better off without it ) , she'd be 'done' for trying to play the system to her advantage....

Moneyworry · 08/08/2014 08:26

Very good to hear he wasn't fiddling DLA, AA if its not means tested. He was a very principled man so didn't like the idea he was maybe a benefit cheat (sorry dad for considering it)

sonic that link is worrying, my brother did mention something like that, looks like dad withdrew it in £1-2k chunks over the last few years when balance in bank was growing as they were not spending much.

Maybe as celia is suggesting he was hiding from future care costs......also not good.

As OAP's all they had were state pensions, AA, DLA coming in and council tax, gas and elec bills going out. Really can't see why he was doing it. He's had a wet-room installed, stairlifts, wheelchairs etc provided, would it be because of them?

OP posts:
Missushb · 08/08/2014 10:44

He was likely worried that in the future him and your mother may need the cash, lots of stories in the news about people having benefits cut and being left with nothing, so you can understand how this fear would manifest. He was likely collecting his money every week and then if they were both ill unlikely they would be spending a lot aside from bills and food. If they were living frugally 12,000 would mount up maybe just even over a couple of years. Sorry but this must happen a lot I would guess. Don't think it's from trying to make loads of cash from the system, in my experience old people are terrified about having nothing, so yes may have some savings under the mattress now, but if their benefits were cut in the future they could have nothing. Probably what his thinking was. Can you tell your mum about the cash? She will probably know anyway? Sorry for your loss and your mothers ill health too.

specialsubject · 08/08/2014 11:27

I'm so sorry.

I also don't think he was doing anything wrong, and the issue of future care costs does (sadly) not arise for him. So all is well.

Please get it into a bank - it is uninsured where it is. If you have a TSB near you, ask them to put it into a Classic Plus and two enhance accounts, and help you set up standing orders between them. That way it will earn some interest as well as being safe.

Moneyworry · 08/08/2014 19:14

Tried the CAB, local one shut due to lack of volunteers/holidays tried one in town 10 miles away twice and both times told too busy due to lack of volunteers, they have given me an appointment next Friday and they can help go through all his paperwork to see what's what.

Good news is mum got her pension review through and she will inherit 100% of dads state pension (it was a SERPS state pension, as he retired just a few months before conservative government reduced it in 2002 she gets it all) so money wise going forward she will be ok.

OP posts:
HillyandHally · 08/08/2014 19:28

Sorry for your loss.

It's very common a lot of elderly people keep cash at home particularly after the banking crisis. Maybe it gave your dad a feeling of security knowing it was therejust in case. He perhaps didn't realise how much had built up?

take it to the bank and explain where it came from it really won't trigger anything. £12k is a lot of money to a normal person but it's not a lot to a bank iyswim?

Supermum222 · 09/08/2014 16:21

Hi,

So sorry about the loss of your dad and sorry to hear that your mum is deteriorating too.
My nana used to keep money stashed in her wardrobe (bedroom) when she was alive. I never knew about it. She didn't trust banks with her money and was worried over care costs.
When she was in her 80's she went into a council run place. It was really nice, had her own 'apartment' but with the care of staff downstairs. Anyway, the money disappeared one day while she was out. A few staff members (and the managers son) had a key to her room. We don't know how much money there was exactly but knew it was a few thousand (more than £10K) from what she said. She was devastated and never got any back.
Please put the money in the bank for safe keeping. They will be fine about it. Does your mum know about it? I would make sure she does.

Purpleroxy · 09/08/2014 16:25

I would start spending it with your mum's permission.

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