House funds - where to invest

[JayneB6367]

I am in the process of selling Mums house to fund her care home fees. I want to put the funds (bar a years fees held back) into various saving options to earn a small income for Mum but that I can get too say yearly for her fees.

Firstly does anyone have any suggestion of where I can invest Mums money? I want safe options not high risk.

Secondly, I will buy premium bonds in her name. Would it be deemed illegal if I also bought them in my name if I put any winnings back into her bank account?

Thanks

 

[marionq]

Returns on all investments are terrible just now and that includes safe options like Premium Bonds and ISAs. I wouldn't worry about it too much as whatever you do the returns will be rubbish so just go for the safe options and hope that interest rates pick up in the future. I would go ahead and put some of it in your own name if that feels right to you.

 

[jaymor]

Not sure how you would stand if anything happened to you. The bonds being in your name would then become part of your estate. I think you might need some legal advice if you are putting your Mothers funds into your name.

 

[Beate]

Here are the facts about premium bonds: http://www.moneysavingexpert.com/savings/premium-bonds

Premium bonds calculator:
http://www.moneysavingexpert.com/savings/premium-bonds-calculator/

You can invest up to £50,000 which is more than I would ever plan of putting into one, so why would you need to use your allocation as well? I have no idea of the legalities but it sounds a bit fishy, and if you invest a lot of your Mum's money in your name, even with the best intentions, it could be classed as deprivation of assets.

A list of top rate savings accounts is here: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

And a list of top rate cash ISAs is here: http://www.moneysavingexpert.com/savings/best-cash-isa

Remember that only £75,000 are protected per financial institution should they crash or whatever. Anything more than that is put in an account at your own risk.

 

[Shedrech]

Hi JayneB6367
just to say I'll be in the same position soon, and had a word with dad's bank as I was worried about the protected limit that Beate mentions - I was told that in these circumstances all the proceeds from the sale can be put immediately into dad's current account and will be protected for 6 months - so that gives quite some time to decide where to invest the funds to split it between enough institutions that the limit isn't exceeded in any one institution
I plan to keep it simple - ie use ISAs up to the limits, then savings accounts with some interest - there's nothing out there that will give a high return, and actually as Attorney we're only required to keep the funds safe, there's no requirement to invest for high return

 

[d4109125]

Seek advice from a Independent Financial Advisor, many Citizens Advice Bureaux offer a free appointment with an IFA.

https://www.citizensadvice.org.uk