my dad has a substantial amount of money in the home.

[carnetta]

Looking for some advice.

My father who is 84, and has a substantial amount of money in the home well over £120k. He worked all his life and was self employed for much of it, had an accountant and paid taxes etc, one could question if some of this money had been cash in hand work over the years or just money he has put aside or both and I honestly couldn't say and have no idea how I could prove what this money is if asked, I only found this hoard recently when decorating his home, to say I was shocked is some what of an understatement.

I'm not sure what to do, simply I want it to be put in a bank account so it is safe and I'm not worrying about it, and couldn't give a monkeys if it is taxed etc.

He is at a point in his life where communication can be really difficult at the best of times due to a stroke a few years ago, so he would really struggle with legal people, but I'm happy to be involved as best as I can.

I just don't know what to do for the best, or who to turn too. My dad has this money as some kind of weird safety net for "when he gets old" !!!!

Last thing I want to do is open up a can of worms and cause him any stress.

Thoughts please.

I'd make sure it was well hidden in case he was burgled and leave it alone. Also get power of attorney.

Use bits of it for him as and when needed.

When he dies you keep it.

I would want it out of the house in case of burglary etc. that kind of money could encourage some very bad behaviour.

Perhaps phone the Bank of England for free information re. large amount of cash.

As long as it's declared during the probate and inheritance tax return process. Otherwise the OP will be committing fraud/tax evasion!

Oh dear, i don't envy you. Please don't go near a bank, it will open a huge can of worms like you will never believe. I was in the same situation with my Dad, cash hidden everywhere. In the end we bought numerous safes and spread his money around. he had 2 safes my brother and i had 3 each. It is really hard to get some old ones to change their ways or even sigh a LPA because they think you are taking their money away from them. You just have to take the time to explain. They know the reasons why but they are scared of dying penniless, so maybe pre plan a funeral and pay for it so he knows he isn't going to a paupers grave as that was one of my Dads worries. We just had to wear him down in the end to get him to sign the LPA. Good luck.

I'd agree. Having modern notes, especially plastic, gives the impression it was acquired recently. If it was old notes, the older the better, there's a better defence that it was accumulated over many decades.

Fire proof safe, bolted into the floor, and that's all you can do.

Unless you want to engage social services. But I think he'd be distressed by that.

Speak to a private client solicitor, they come across this all the time. Also suggest they arrange powers of attorney

Thanks for positing that its good to know others have been in a similar situation. The money is now in a much better situation then it was (originally just in a wardrobe!!) and would be difficult to find, burn etc and I have spread around just as you had to do.

The hilarious part is, when i think of years gone by when my mum would dare say she needed a new washing machine or similar, and he would literally have a mini melt down becuase he had to buy something as if he was skint. :D

@carnetta I would leave it where it is. it is his money. i dont know if you have siblings but think of the inheritance tax you can save!!! they are talking about putting it up to 55 per cent!!

Assuming you'll be the one inheriting it, I'd just look forward to the tax-free inheritance 😉

It sounds good in one sense, but when you genuinely think about trying to spend that kind of money it really isn't easy anymore - i would much have preferred it to be sitting in a bank legally, at least it could have been passed on to my kids in the future when he passes they will be the ones who would need it, yes the government would take there cut but it would have been much easier.

Its a unusual problem to have.

First thingy is he needs a discreet safe whilst you and he talk through what it's for and what will happen going forward. Does he have a bank account?

If he does, pay the old notes in to it so they are dealt with or into your own and withdraw it for him or use it for items that might help him that can be purchased online if he is in agreement. (banks can be funny helping people who aren't customers with them hence using one you have an existing relationship with)

Perhaps a food delivery or meals on wheels? Some disability aids from amazon or similar?

As well as the money laundering issues, there also the sudden deprivation of capital if it was paid in to a bank account and the being spent. Social services expect receipts for everything so keep them if he makes it official and pays it in to the bank.

Personally I wouldn't bother and would keep it in the safe outside of the old notes.

I agree - they have legal privalage so won't have to declare it as suspected money laundering/proceeds of crime/tax evasion.

When potential clients come to me and start talking about similar things, I shut them down before they can say too much and tell them to consult a solicitor instead. Otherwise, I'd be having to submit a suspicious activity report!

So you'd commit fraud/tax evasion??

Could change a few at a time.

I occasionally find old notes that belonged to my late husband or parents. My branch either swaps them for me or pays them into my account.

A friend found 7k stashed behind her dad’s bath panel. The old gent had dementia and something he said alerted the family to the fact he’d hidden money.

Buy a lot of gold bullion in many small transactions so that this is not flagged as suspicious. Store some of the cash and bullion in a safe deposit box at the bank.

I don’t know where exactly you live so I can’t suggest a specific place to buy the gold.

Given the high cost of gold at the moment it shouldn’t be too hard to do this. Just don’t do it all in one transaction.

I would convert it all to gold.

I would sit him down and get him to u seed and the consequences of that amount of cash.

I would agree between you and strategy for normalising/using that cash. Something that won't alert anyone. I mean let's face it, it would be quite easy to spend and invest.

So where is the money now? Is it in a safe in his home? You need to secure it so it can't be accidentally lost or stolen or damaged. Keep a log of it and consider getting POA so you could then create a bank account to move it to in stages. The time may come sooner than you think when he won't have capacity and this asset could be gone and he wouldn't want that surely.

Buy him a safe to protect from theft and fire and just let him get on with it.

Still fraud/tax evasion by not declaring it during probate/IHT returns etc. Doesn't matter what you do with it.

This will be a nightmare to deal with, your dad's been really shortsighted by not declaring it. Trying to integrate that much cash isn't going to be easy. I think even gold dealers are obliged to have low cash limits to prevent money laundering.