Helping someone with their inheritance

[MaverickSnoopy]

I have a family member close to me who is set to inherit some money. They have great difficulty with their mental health and have been getting help long term, it's not something that will likely improve very much due to severe childhood trauma. They struggle with managing their money and have ended up with a lot of debt several times which we have helped them sort out (with advice and support) and get back on track.

They're set to inherit a medium size sum, about £10k. With past inheritances it has been spent on things they have regretted, mostly pub, clothes, general shopping etc. Each time they've said they regretted what they'd done and wished someone could have looked after if for them.

I'd like to offer that I look after the money for them - I'm very good with money and it would be safe with me. We'd draw up some kind of agreement to verify that it was her money and I was just keeping it safe. However we recieve tax credits and I'm not sure if they'd count it as my savings. Is there anything I can do to support this person without it impacting us?

I'm just trying to arm myself with a bit of knowledge so that I can make an offer. If they don't want my help then I won't help.

Do they want to save the money for a few years but are worried about it being too easily accessed and frittered away? They could open a savings account that only has branch access and hand you the passbook for safekeeping.

You can speak to the bank, they may offer a service that might help. Vulnerable customers is a hot topic in financial services at the moment.

Failing that the solicitor may be able to draw something up - e.g. put it in a trust.

Could they put it in a pension?

This is the best idea - the money will need to be in their name.

Your relative should open a 6 month notice deposit account or premium bonds. Both require notice to access money and not easily accessible.

You shouldn't mind the money because:

• it will mess up your benefit entitlement as it'll be classed as you having savings over £6k limit
• if you die or divorce then how will she get her money back as it might be seen as part of your estate

www.moneysavingexpert.com/savings/savings-accounts-best-interest/

www.nsandi.com/products/premium-bonds

Put in in premium bonds

Put it in an Isa and toll it over at the end date.

Thank you, this is an excellent idea. I can't believe I hadn't even thought of it. This is exactly it, they've had 2 sizeable inheritances before and it was all frittered away. They're very vulnerable and I do worry for their future so wanted to offer some options.

Thank you all for your help, I feel much more armed with information and will talk to them.

Notice account and a branch based one so that there can be a discussion about vulnerability. As someone said upthread it's a hot topic and most banks and building societies are trying really hard to support customers.