lump sum of 28K cash!

M

majee

Registered User
Messages
141
hi,

my mother wants to get her affairs in order and produced a lump sum of 28K in cash in front of me and my brother and sister. We want to put the money in an account that will produce some interest for her whilst at the same time be available to her if she needs it.
If we go down to the local bank with 28K cash it's gonna raise a few eyebrows not to mention have tax implications. How can we safely and quickly deposit this money with the least exposure to tax?
 
majee said:
hi,

my mother wants to get her affairs in order and produced a lump sum of 28K in cash in front of me and my brother and sister. We want to put the money in an account that will produce some interest for her whilst at the same time be available to her if she needs it.
If we go down to the local bank with 28K cash it's gonna raise a few eyebrows not to mention have tax implications. How can we safely and quickly deposit this money with the least exposure to tax?
Click to expand...

You say you want to produce some interest for her, while keeping it available to her. So this is her money -- she's not giving it to you, if I'm understanding you right.

So why would there be any tax implications? I move bigger amounts than that on a regular basis. It's not a crime or any concern of the taxman whatsoever, assuming the money itself is legal. If that's the case you've nothing to worry about. If it's not, your mother should pay her taxes like all citizens are required to by law.
 
I think the problem is being bothered by Revenue and proving it was legal.

Three years ago my brother sent me a large sum from his Swiss a/c. It was a 20+ years belated return of money I loaned him in my better and his worst times. He done well working in tax-free Gulf states and hadn't been a resident of any EU state for those years.

Well, the statment if you've done nothing wrong "you've nothing to worry about" proved to be absolutely not true in this case when I got my first letter from Revenue (who'd been informed by my bank)

Whose Swiss bank a/c was this? What was the source of this money? What is the purpose of this money? etc etc

Not one letter but several to and fro between Revenue and me , and me and my brother; proof that brother was working where he was, proof he was my brother, proof that he owed this money (this was worst part - a twenty year old fraternal debt)and was not just a gift.

O.K. at the end Revenue were satisfied. But it proved to me that innocence is no guarantee that one should not worry in these or similar circumstances.
 
majee said:
If we go down to the local bank with 28K cash it's gonna raise a few eyebrows not to mention have tax implications. How can we safely and quickly deposit this money with the least exposure to tax?
Click to expand...

Where did the money come from?

If it is hot money, you should encourage her to make a full disclosure and minimise the penalties.

Askaboutmoney can be used for tax planning, but not to give advice on tax evasion. Accordingly, I have deleted some posts which were not clear on this issue.
 
let me be clear on this - my mother is an 80 year old widow who has managed to squirrel away some savings over a very long period of time from a small pension income. I wouldn't have believed it myself until she produced the money in front of me and my siblings last nite. The money is not hot. I am not a drug dealer who is using my mother as cover for my own benefit!
We're trying to get her money safe whist avoiding unnecessary taxes. I'm not trying to evade tax on her behalf. I'm looking for advice on a very unusual situation.
dub_nerd, when was the last time you walked into a bank with 28k in a plastic bag? most people move large sums of money electronically yes. but like this, I'm not so sure.
 
Brendan's comment appeared a little unfair. From experience of my own elderly relations, I note that the recent mistruct of banks has led to them taking out their savings and keeping a large portion of mattress money, which is extremely dangerous. I recently had to re-invest 10K of mother in law's cash. Actually invested in shares which may seem somewhat risky. However, the funds will never be required by her and the family decision was to take a little risk and invest long term. Any advice should be taken on the basis of the associated need to access the funds. No worries about a bank accepting the cash. There will be disclosure requirements which must be addressed re source etc, but as funds are legitimate this should not be a concern for you.
 
I am not sure what aspect of my post is unfair?

I asked where did the money come from? No source was given. The OP referred to "raising eyebrows". What is wrong with raising eyebrows?

I said "If it is hot money...". I made no assumption. He has clarified that it is not.

I reminded people of the Posting Guidelines as others had picked up on the "raising eyebrows" comment.
 
You must log in or register to reply here.
Back
Top