#InvestmentAccount #FinancialPlanning #SavingStrategies
Hey everyone! 👋 I have a question that I’m hoping you can help me with. My mum is facing some financial challenges due to her disability, and I want to do something special for her. Can I open an investment account on her behalf to give her a financial boost in the future?
Here’s a bit of background:
– My mum struggles in this economy and is not great at saving long-term.
– I’m thinking of surprising her with an investment account that I’ll fund out of my own salary.
– She receives disability allowance and her housing is covered, so I don’t want to cause any financial issues.
I’m considering this as a solution to help her secure her financial future. Any thoughts or advice on how I can proceed with this plan without causing any problems?
Here are some factors to consider:
– Opening a specific type of investment account for her
– Ensuring that the funds are managed responsibly
– Consulting with a financial advisor for guidance
I’m looking forward to hearing your insights and suggestions on how I can make this idea a reality! Let’s start a conversation and share our knowledge on financial planning for loved ones in need. 💡💰
If she is on means-tested benefits (such as universal credit, or old ESA), receiving money will affect those. Not PIP, though, as that is not means tested.
By all means open the account (in your name) and use the money to buy her things she needs – for example, furniture and appliance replacement, private medical appointments, cleaners and other support, transport, home repairs and maintenance if she is a homeowner, or treats like holidays – but giving her the money, whether as income or a lump sum will cause problems with the DWP. Also watch out for paying utility bills on someone’s behalf, which could also make such rules kick in – check up to date regulations for specific benefits first.
Bear in mind that rules about these things may well change over 10 years. Although there is a Labour govt evidently coming in, there is basically no spare money in the public purse, and so rules on benefits, as well as provision of public services, may not become any more favourable, and some may become more restrictive, because there are so many improvements needed, and not enough funding to go round.
One “proper” way to do this would be to set up a discretionary trust with your mum as the beneficiary. The trust tax situation could be better than a usual discretionary trust since she would be a vulnerable beneficiary.
If you just invest money yourself and buy her things when needed, what happens if you get hit by a bus? Get divorced? etc. etc.
Save money in your own name – you can give it to her later at your own discretion. Your gifts to her will not be taxable, nor will small gifts affect her bennies.