My mates in a complete state please help

[billy1969]

A mate of mine agreed to look after his sisters money which she was leaving to him anyway that she had in savings so when she retires in 2 years times she can claim benfits. I know that sounds bad in itself but can you just bear with me because hes in a right state about it.

 

He got pressured into doing it and has the money in his account. The deal was she wouldnt touch it so there would be no real activity on the account, maybe taking out bits and bobs when she needed it. He always felt uncomfortable about doing it and now she is saying that she wants some money. And what is the potential fall out for him regarding this.

 

He wants to tranfer it back to her as she hasnt retired yet but doesnt want to make a huge transaction as he doesnt want it picked up by anyone. He was made bankrupt in 2008 and discharged in 2009 and he is worried that if someone looks at his account they might think that his sister was hiding the money for him and has now given it back. Hes got himself in to such a state worrying that im worried for him which is why i have posted on his behlaf as hes so paranoid.

 

I told him to start transferring it back at 1000.00 a month as that shouldnt look to bad an could be maybe seen as him payng a loan back or something?

 

Hes worried about the tax man, the official reciver, getting caught up in fraud and all sorts. I guess im trying to find out whta the best thing to do is for him.

 

Its a weird one i know and his sister should have never put him in this position. Whats the best way for him to get this money back to her with the least problems?

Edited October 29, 2013 by billy1969
added extra text

[honeybee13]

Hello and welcome to CAG.

 

I hope someone will have some answers for you, as this looks like a difficult situation for your friend. I think this could be picked up if anyone like HMRC run a check for any reason.

 

And as you say, the sister's reasons were not good and she should not have put him in this position.

 

Roughly how much money is involved, to the nearest £5/10k please?

 

My best, HB

[billy1969]

Thanks Honey. 70k as ive told him it think a good idea to start transferring it back but in small amounts?

Edited October 29, 2013 by billy1969
spelling

[citizenB]

I would have thought any tax implications would have been at the original transfer. However, it is my understanding that as long as transactions are under £4,000 then there will be no need for the tax man to be notified.

[billy1969]

OK and what about the offical receiver would they think that he has been hiding the money that has now been transferred to him by his sister? could they sieze the money or see it as fraud?

[steampowered]

Was the money transferred before or after the bankruptcy?

[billy1969]

after. Hes worried because he went bankrupt for roughly the same amount as is now in his account so could that be seen by the Offical reciver as him deliberatly concealing the money until after the bankruptcy?

[billy1969]

i think its best he gives it back to her. She was going to leave it to him in her will andi guess she thought she could give it to him now.

[thegingerone]

A mate of mine agreed to look after his sisters money which she was leaving to him anyway that she had in savings so when she retires in 2 years times she can claim benfits. I know that sounds bad in itself but can you just bear with me because hes in a right state about it.

 

 

how can she claim benefits when she retires with 70 k in the bank?

not adding up at all

even if its in your friends account it belongs to her and

its very strange he hasnt had to pay tax on this money it would flag up at HMRC.

that in turn would trigger something up at the receivers office maybe

careful I would say

Edited October 29, 2013 by thegingerone

[billy1969]

Ok the money has been transferred over a period of time in smallish chunks , nothing has ever been picked up by anyone, well yet which is why he's panicking so much as someone mentioned to him that the tax man may look into it or the official receiver.

[billy1969]

She's paid tax on it herself as it it savings.

[steampowered]

If the money was transferred after he was discharged from bankruptcy I can't see why the Official Receiver would be interested. There will be an issue if the money was received after he declared bankruptcy but before it was discharged.

[honeybee13]

She's paid tax on it herself as it it savings.

 

Hello again.

 

I'm not sure how that works. If the money was in her brother's name, why would she pay tax on it? Maybe I've misunderstood something...

 

HB

[Hammy1962]

Wow, I think he's done really well, if someone put 70K in my bank account it wouldn't be there for long, Sister or not.

 

H