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Laurence O'Brien
Posted: 20 October 2024 20:42:38(UTC)
#1

Joined: 04/12/2014(UTC)
Posts: 943
A friend of many years came to stay with me and my wife this weekend. She’s 75, divorced with no dependents but in recent years has had a couple of inheritances. She’s also moved home and has carried out extensive and expensive alterations to her new place. She’s clueless about money and told us that she had just found out from her bank that she has £142,000 sitting in a deposit account which she says she was unaware of until the bank informed her that tax was payable on the interest earned.

She asked me what she should do with the money and other than using her ISA allowance and putting what she was allowed into a SIPP, I couldn’t think of anything that would mitigate her taxes. If anyone has and good ideas, I would be happy to pass them on to her.
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Neminem Laedit
Posted: 20 October 2024 20:48:34(UTC)
#2

Joined: 17/09/2018(UTC)
Posts: 1,473

Thanks: 1011 times
Was thanked: 2019 time(s) in 822 post(s)
If she doesn't need it (by the sounds of it).

Give it away to children/nephews/nieces, with the instruction they put it into Bitcoin...
[Or put it into BTC herself, and gift the bitcoin]

She may avoid IHT, if she lives for 7 years [rumours are Reeves will increase this to 10 years on 30th October]

and her beneficiaries may be set for life as a result of her gift.

[Saylor thinks BTC will be worth $1m by 2032 and $13m by 2045]
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4 users thanked Neminem Laedit for this post.
Jay P on 20/10/2024(UTC), guantou on 20/10/2024(UTC), Newbie on 20/10/2024(UTC), Dentmaster on 20/10/2024(UTC)
Newbie
Posted: 20 October 2024 21:02:04(UTC)
#4

Joined: 31/01/2012(UTC)
Posts: 3,818
At age 75 - just tell to keep as she is.
If HMRC want any monies they can come to her - then she can pay them !
She has no knowingly defrauded them and by the sounds of it is a genuine case of she did not know.
If she feels the urge spend it or visit a bullion dealer and buy some CGT free bullion and get it stored somewhere safe.
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Dentmaster
Posted: 20 October 2024 21:21:09(UTC)
#7

Joined: 23/01/2021(UTC)
Posts: 440
Ill gladly send her my bank details. The less she has the less tax to pay.
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Thrugelmir
Posted: 20 October 2024 21:44:20(UTC)
#8

Joined: 01/06/2012(UTC)
Posts: 5,329
Enjoy life with the money.
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D Bergman
Posted: 20 October 2024 22:28:50(UTC)
#9

Joined: 22/03/2018(UTC)
Posts: 1,308

Thanks: 1686 times
Was thanked: 3536 time(s) in 1035 post(s)
After she is 75, she can’t get tax relief on SIPP contributions, so I wouldn’t suggest that.
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4 users thanked D Bergman for this post.
Jay P on 20/10/2024(UTC), Guest on 21/10/2024(UTC), Laurence O'Brien on 21/10/2024(UTC), Tim D on 21/10/2024(UTC)
Busy doing nothing
Posted: 20 October 2024 23:12:32(UTC)
#10

Joined: 01/03/2021(UTC)
Posts: 375

Thanks: 1075 times
Was thanked: 600 time(s) in 232 post(s)
Premium bonds, Index linked gilts, and just enjoy life, it's what she has worked for.
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2 users thanked Busy doing nothing for this post.
Martina on 21/10/2024(UTC), bearcub on 21/10/2024(UTC)
ANDREW FOSTER
Posted: 21 October 2024 03:33:17(UTC)
#3

Joined: 23/07/2019(UTC)
Posts: 8,120

Thanks: 11360 times
Was thanked: 18230 time(s) in 5978 post(s)
Neminem Laedit;322890 wrote:
If she doesn't need it (by the sounds of it).

Give it away to children/nephews/nieces, with the instruction they put it into Bitcoin...
[Or put it into BTC herself, and gift the bitcoin]

She may avoid IHT, if she lives for 7 years [rumours are Reeves will increase this to 10 years on 30th October]

and her beneficiaries may be set for life as a result of her gift.

[Saylor thinks BTC will be worth $1m by 2032 and $13m by 2045]



Wreckless advice to anyone let alone the financially non-savvy.

BTC is 'worth' zero and always will be. What the price might be is a different matter.

Figures of a million or 13 million are just total hype and have as much validity as speculating on the future value of air
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3 users thanked ANDREW FOSTER for this post.
Hilda Ogden on 21/10/2024(UTC), jeffian on 21/10/2024(UTC), Tim D on 21/10/2024(UTC)
BigLoss
Posted: 21 October 2024 06:05:28(UTC)
#11

Joined: 18/06/2019(UTC)
Posts: 85
A low coupon gilt and use it to make a capital gain.

Also, enjoy giving some to some charitable causes dear to her.

Laurence O'Brien;322889 wrote:
A friend of many years came to stay with me and my wife this weekend. She’s 75, divorced with no dependents but in recent years has had a couple of inheritances. She’s also moved home and has carried out extensive and expensive alterations to her new place. She’s clueless about money and told us that she had just found out from her bank that she has £142,000 sitting in a deposit account which she says she was unaware of until the bank informed her that tax was payable on the interest earned.

She asked me what she should do with the money and other than using her ISA allowance and putting what she was allowed into a SIPP, I couldn’t think of anything that would mitigate her taxes. If anyone has and good ideas, I would be happy to pass them on to her.
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magic beans
Posted: 21 October 2024 08:13:50(UTC)
#12

Joined: 22/01/2012(UTC)
Posts: 110
Donate it to charity?
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