Where should we put the cash from our home sale?

By Edited By Stephen Womack
This week’s experts are PHILIPPA GEE of financial adviser Philippa Gee Wealth Management in Church Stretton, Shropshire; PHILLIPA BRUCE-KERR, a partner with solicitor Rickerbys in Cheltenham, Gloucestershire; and JASON WITCOMBE, a chartered financial planner with Evolve in the City of London. Do you have a personal finance query? Write to: Ask the Experts, Financial Mail, Room 301, 2 Derry Street, London W8 5TS. Please do not send original documents. Sorry, no personal replies.

D.C.writes: We are on track to sell our home and plan to rent while searching for a retirement bungalow. We will have about £190,000 in bank accounts with Barclays and want a more productive way to keep this secure.

P.G.replies: Six months is a short investment term so your options are limited. As security is essential, you have to accept the lower returns available from deposit accounts, particularly in the current volatile market.
You would be best going for an instant-access account, although shop around to make sure you get the best deal. There are plenty of cash accounts to choose from.
Consider how you want to access the money (online, for example) and whether you are happy with an account that limits how many times you can withdraw money and still qualify for the best rate.
Think about whose name you hold the money in, especially if one of you pays tax at a lower rate than the other. Also consider splitting the money between at least two accounts with different institutions.
Lasting support

A.W.writes: I have an enduring power of attorney to handle the finances of my ex-wife, who has mental health problems. She is now in sheltered accommodation and I need to pass on these responsibilities to someone else.

P.B-K.replies: Only your wife or the Court of Protection can authorise someone else to manage her affairs when you cannot.

Speak to the home’s psychiatric consultant to see if your wife has sufficient understanding to create a new power of attorney.

If she does, she can appoint other people to help by using a Lasting Power of Attorney (LPA). If she does not, the Court will appoint one or two people to act as ‘deputies’ for her. If you have no family or friends who can act, the Court can appoint someone from its panel.Sorry, you can’t have husband’s three pensions

V.F.writes: I am a 67-year-old woman drawing a State pension of just under £300 each month. My husband has three pensions – from the Army, the State and from his time working for the council. Can he transfer any of these to me or claim any of my tax allowances to reduce his tax bill?

J.W.replies: The short answer is no. His pensions are treated as his income and are not transferable, but you can make sure that any taxable savings and investments are held in your name rather than his. You have a tax-free personal allowance of £9,940 each year, which rises further at age 75. Much of this is therefore not being used.