# parents savings advice appreciated



## mark1 (28 Jul 2014)

My dad has asked if i would help him manage their savings. My mam would have looked after everything from a financial point of view all of their lives however she is suffering from dementia and is increasingly unable to cope with day to day things. We went through a few things today and 1 of the items was a state savings account which had a balance of €38500.0 the account matured in november 2012. A current account with BOI with €65000.00 in it. I would appreciate views on the best and easiest way for him to keep the money accesible, safe and maybe earn some form of interest without tying it up for too long. Both in their 80s so dont want to be going down the online route too much. I suggested we might go see an independent financial advisor.


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## Brendan Burgess (29 Jul 2014)

Hi mark

I have done a Key Post on the topic which deals with it in a systematic way. Opposing views are also aired.  If you go to a financial advisor, you will get only one view 

"I am 65 – where should I invest my life savings? "

You need to provide more information
1) What is their current income 
2) What is their current expenditure?
3) Do they own their own home - if so, how much is it worth and is it suitable for their needs? 
4) What age are they? 
5) What is their current state of health and what are their likely care needs? 
6) Do they have any mortgage or other loans? 
7) Do they have any other assets? 
8) What is their likely plan for their money after they die?


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## Branz (29 Jul 2014)

As well as what Brendan has written, you might take steps to address the consequences of your mothers dementia in  terms of wills/ownership of/ access to  the family home and other assets in the event that your father predeceases her and she is unable to mange her legal affairs.
Let me give a recent example: the mum, who suffered from dementia was eventually put in a home under the terms of the Fair deal scheme, the Dad died unexpectedly without all the paperwork being sorted so there is a problem re selling the house as required under the Fair Deal Scheme as a result I gather of all the mums paperwork not being in order.
I didn't pry as to what was wrong, just flagging it here for you as something to look at.
Update: just met someone while out with dog who knew more about this.
The Dad's will left everything to the mum and this will was not changed after she went into the home.


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## Brendan Burgess (29 Jul 2014)

Good point. When my aunt was beginning to show signs of forgetfulness and could be vulnerable, she cashed her investments and transferred her cash to me to mind for her. 

You should probably make sure that all your mother's money is held in your father's sole name. 

Brendan


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## Steven Barrett (29 Jul 2014)

Hi Mark

As an advisor myself, the only place I would advise your parents to put the money is on deposit. With their age, it is too risky to put it in any other asset class. Security is probably a lot more important than asset accumulation at this stage anyway. Irishdeposits.ie show all the up to date rates available. 

[broken link removed]

With your mum's health not great, I would keep a decent amount of cash available as you don't know when you will need it for medical expenses. 


Steven
www.bluewaterfp.ie


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## mark1 (29 Jul 2014)

Brendan Burgess said:


> Hi mark
> 
> I have done a Key Post on the topic which deals with it in a systematic way. Opposing views are also aired.  If you go to a financial advisor, you will get only one view
> 
> ...


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## mark1 (29 Jul 2014)

ircoha said:


> As well as what Brendan has written, you might take steps to address the consequences of your mothers dementia in  terms of wills/ownership of/ access to  the family home and other assets in the event that your father predeceases her and she is unable to mange her legal affairs.
> Let me give a recent example: the mum, who suffered from dementia was eventually put in a home under the terms of the Fair deal scheme, the Dad died unexpectedly without all the paperwork being sorted so there is a problem re selling the house as required under the Fair Deal Scheme as a result I gather of all the mums paperwork not being in order.
> I didn't pry as to what was wrong, just flagging it here for you as something to look at.
> Update: just met someone while out with dog who knew more about this.
> The Dad's will left everything to the mum and this will was not changed after she went into the home.



Thank you for your time and advice, I had been thinking about discussing wills and getting some legal advice with the m for the last few months.I will prioritise this no, much appreciated


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## mark1 (29 Jul 2014)

Steven, thank you for your time.The one quetion i had at the moment was the state savings. The interest over 4yrs 2008-20012 was €3500.00. It seems pretty decent to me given the security. Would it be a good plan to reinvest it again as its earned nothing since it matured in 2012 and my understanding is that whatever term he chose its accessable within seven days.when i get a clearer picture of everything i will update.your advice is very much appreciated, thank you


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## Branz (29 Jul 2014)

Mark, when moving this stuff around make sure you don't fall foul of any of the SW asset/income  tests for the Non-Con State pension that maybe your Mum is in receipt of.
Given their ages and the interest income levels it should not be an issue but I do know that Revenue and SW work together on the interest returns from the banks looking for 'anomalies'
The letters come from the SW, giving 7 days to reply or else they cut it off...

One example I came across was the husband got an inheritance and put it in a joint deposit account: one year later 3k gross interest is received.
3 month later, letter from SW looking for 5 years data...
It got sorted but lots of worry

Probably not an issue here but just something to bear in mind


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## Brendan Burgess (29 Jul 2014)

You should encourage them both to make wills, although your mother may not have the capacity at present. 

It is best not to discuss the contents unless all the children are involved.   Tell them to choose a solicitor, and if possible make sure that none of the children are present when they are meeting the solicitor.


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## Steven Barrett (29 Jul 2014)

mark1 said:


> Steven, thank you for your time.The one quetion i had at the moment was the state savings. The interest over 4yrs 2008-20012 was €3500.00. It seems pretty decent to me given the security. Would it be a good plan to reinvest it again as its earned nothing since it matured in 2012 and my understanding is that whatever term he chose its accessable within seven days.when i get a clearer picture of everything i will update.your advice is very much appreciated, thank you



The State's Savings are still quite good but nowhere near as good as previously. There was a lot of lobbying by the banks for them to cut their rates as the banks couldn't compete with the attractive DIRT free rates. The 4 year savings bond pays out 6% at the end of the term, 1.47% AER. The rates if you take your money out early are a lot lower though. 

Steven
www.bluewaterfp.ie


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