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So, my parents are mid-80s, Dad has Alzheimer's, Mum's never really had to deal with financial stuff. My sister and I have LPoA and we've a meeting with a Financial Advisor on Monday. Day to day, I manage their finances for them.
Last year, my parents moved out of their home and bought a self-contained flat in a sheltered housing & care set-up.
They have the full proceeds of their house sale (only recently sale completed) sat in their current account. The meeting with the FA is look at how best to use that money. They'll need fairly quick access to at least some of it, as whilst they don't have too much in the way of support/care costs currently, that could change at any time.
We bought the current flat outright, before they'd sold the house, using a mix of savings and cashing in part of a couple of ISAs. Am I right in thinking that we can reimburse those ISAs immediately without being subject to annual ISA paying-in / tax limits?
Any other suggestions for what to do in terms of investing / saving that money? Or questions/issues we need to check out with the FA?
Cheers.
My understanding was the once you withdrew money from an ISA that was it. You can't take £10k out then repay it to get back to £20k.
If course they can start new ISAs. One each for the current tax year then another one each in April
So that is £80k invested but easily accessible while not being taxed.
If your ISA is ‘flexible’, you can take out cash then put it back in during the same tax year without reducing your current year’s allowance. Your provider can tell you if your ISA is flexible.
https://www.gov.uk/individual-savings-accounts/withdrawing-your-money
When I found out about that it was only in relation to that years allowance. It's not clear from my cursory read of that page whether it would apply if you'd a far larger ISA pot accumulated over a number of years
there is some wheeze where you can open an isa every year put only a few quid in it, then use that allowance in subsequent years i believe. having taken the option to open an isa in any given year allows you to make use of it's facility retrospectively. as above it may well depend upon the provider's Ts & Cs. there was something on monevator about it.
My understanding is as follows,
If your ISA is flexible, you can withdraw and replace money within the same tax year without losing your ISA allowance.
My moneybox isa doesnt allow the above.
However my Nationwide Isa does.
Regards
A
Had my FA take a look at my father's finances last year
I was fully expecting my FA to sign my dad up and was happy with that, I think my FA is a good one.
But the FA, even though he went out of his way to come and visit us, was very succinct and ultimately really honest.
His advice was make sure my dads money was spread out to different institutions, so that the 85k safety protection wasn't exceeded. Other than that, as his age 78 and circumstance, take your pick of "highstreet/online" saving accounts. They are much of a muchness/always changing and there was no need to be investing or using his services.
Have a look at Hargreaves’s lansdown (active savings and cash isas), it gives you lots of isa or cash (or stock shares) via one login, you can spread to the 85k limit (*other suppliers are available) they also provide a range of prebuilt share portfolios etc. (*as do manyother suppliers).
with any adviser and broker check the charges / commissions rates etc. also understand any access limitations/chargea. I’d not be paying an adviser for cash/cash isas and check the returns of anything you’re being sold in comparison to the mkt average for similar things over say 1,3, 5 years (*taking in to account charges/commissions)
I opened a family building society account today online in 5 mins, as a new customer. Easy access 4.5%, I d park the money in there while you decide what to do.
Other contenders but rates are dropping, ulster, coventry, principality, gatehouse. Just keep a few quid in each and move your money around as rates move. Some are 5 access, 3 access, family is 20 access pa.