Cash in Ireland - best way to utilise
Discussion
Hello.
My mum is in her 70s and has a state pension. She owns her house outright.
(I live separately)
State pension is her only income.
She has 300000 Euros in a bank account in Ireland that was a gift from her sister.
When she first received it, she had it in a 6.7% bond account (Investment). That matured and paid out about 3 years ago.
She is currently living off some savings she has in the UK.
She is not very good with dealing with banks and setting things up. (Elderly, and suffers from dyslexia and a bit of anxiety)
What I want to do is help her move the savings in Ireland into some sort of low risk investment vehicle similar to what she had before, so she can live off the yield she gets (She is not an extravagant spender at all!) instead of burning through savings.
What would you do in my position? I was thinking of engaging an IFA.
Thanks in advance.
My mum is in her 70s and has a state pension. She owns her house outright.
(I live separately)
State pension is her only income.
She has 300000 Euros in a bank account in Ireland that was a gift from her sister.
When she first received it, she had it in a 6.7% bond account (Investment). That matured and paid out about 3 years ago.
She is currently living off some savings she has in the UK.
She is not very good with dealing with banks and setting things up. (Elderly, and suffers from dyslexia and a bit of anxiety)
What I want to do is help her move the savings in Ireland into some sort of low risk investment vehicle similar to what she had before, so she can live off the yield she gets (She is not an extravagant spender at all!) instead of burning through savings.
What would you do in my position? I was thinking of engaging an IFA.
Thanks in advance.
Maybe someone told her years ago about non dom status, if she is in fact Domiciled as Irish. She needs proper advice as if she's being getting income or accumulating income, it probable she should have been at the very least filling UK tax returns but also parts of the money may actually be taxable in the UK, allowing for Treaties etc.
300000 Euro's is a large amount so you need to get the full details and see a Specialist before even considering an IFA, it really is better to be belt and braces these days as any excuse is enough for HMRC to become a real pain
Of course if she's been fully declaring any income, ignore what I say.
300000 Euro's is a large amount so you need to get the full details and see a Specialist before even considering an IFA, it really is better to be belt and braces these days as any excuse is enough for HMRC to become a real pain
Of course if she's been fully declaring any income, ignore what I say.
What is her goal?
What I mean by that is - does she simply want to give it all to someone/more than one in a will.
Not being morbid but is she in good health and did her parents and grandparents live to a good age (or not)?
What is her lifestyle? Is it pottering about the village charity / woman’s clubs societies walking clubs etc or is she someone who travels much further much more often? Does she have new TVs cars clothes etc.
Does she have a nice kitchen bathrooms good decor etc?
Basically what I’m getting at is how much does she need on an annual basis to live to the quality of life she wants. You then have pensions + maybe a gap to her spend level which clearly means drawing on the fund of cash. How many years can that last if it’s sat in a bank account?
Maybe she doesn’t want to give anything in her will or maybe she wants to gift some now whilst alive and see the benefit such a gift can give and the joy that gives.
Get formal advice for sure but it comes down to what does she want? If she wants 5*+ holidays often and business/first class flying that money will not last long.
What I mean by that is - does she simply want to give it all to someone/more than one in a will.
Not being morbid but is she in good health and did her parents and grandparents live to a good age (or not)?
What is her lifestyle? Is it pottering about the village charity / woman’s clubs societies walking clubs etc or is she someone who travels much further much more often? Does she have new TVs cars clothes etc.
Does she have a nice kitchen bathrooms good decor etc?
Basically what I’m getting at is how much does she need on an annual basis to live to the quality of life she wants. You then have pensions + maybe a gap to her spend level which clearly means drawing on the fund of cash. How many years can that last if it’s sat in a bank account?
Maybe she doesn’t want to give anything in her will or maybe she wants to gift some now whilst alive and see the benefit such a gift can give and the joy that gives.
Get formal advice for sure but it comes down to what does she want? If she wants 5*+ holidays often and business/first class flying that money will not last long.
Irish citizen, Irish passport, resident in UK for last fifty odd years.
Re: the other questions, I am sole beneficiary in her will (Drafted correctly with a solicitor). She is not extravagant at all, in addition to anxiety etc. she suffers from COPD and has not left the country (Ireland aside) for the past 45 years. I did a budget with her a few weeks back to establish what she was spending on phone bills/ energy (I have since moved her energy supplier, phone and mobile for better deals) and it come out to £1300 a month which covers all bills and groceries etc.
Goals - she is really not the sort of person to have goals, I have asked her what she wants to do in the past, and its limited to sitting and watching TV etc. I do take her out from time to time but it is a struggle as she gets very anxious then wants to go home. Realistically I am going to end up with the money (After inheritance tax) once she dies which I am not looking forward to.
Thanks for the replies so far
Re: the other questions, I am sole beneficiary in her will (Drafted correctly with a solicitor). She is not extravagant at all, in addition to anxiety etc. she suffers from COPD and has not left the country (Ireland aside) for the past 45 years. I did a budget with her a few weeks back to establish what she was spending on phone bills/ energy (I have since moved her energy supplier, phone and mobile for better deals) and it come out to £1300 a month which covers all bills and groceries etc.
Goals - she is really not the sort of person to have goals, I have asked her what she wants to do in the past, and its limited to sitting and watching TV etc. I do take her out from time to time but it is a struggle as she gets very anxious then wants to go home. Realistically I am going to end up with the money (After inheritance tax) once she dies which I am not looking forward to.
Thanks for the replies so far
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