Just let go but I have parents money in my account.

ust

My parents moved to Australia in 2005 and in the years before they left they regularly lodged money to my account as they didn't want to put all their eggs in the one basket, i.e, the Australian Dollar, and wanted to have access to money when they travelled back to Ireland while at the same time having someone they trusted in control of it in the event of an emergency. Over three years these lodgements amassed pretty quickly to a sizeable sum.

They lodged this money to a savings account I had a couple of grand in. The account has really had very little activity since they left, the odd lodgement or withdrawal whenever they're home in Ireland or I might dip into it to book them flights. I have transferred the money to different institutions over the years to avail of higher interest. With the accumulation of years interest there is about 85,000 in my account of which 7,000 is actually mine.

I was unexpectedly let go today so I will need to apply for the dole on Monday, how the heck do I approach this? There is no way on earth they will believe I have 78,000 just resting in my account for years that isn't mine. Of course looking back now it was a stupid idea minding their money. Any advice would be appreciated.

mp22

There is no means test for JSB.

ust

Hi MP22.

Thank you. If I don't mention it would they find out anyway when they run my PPS number through their computer and see I received interest and paid DIRT on it yearly and come down on me like a tonne of bricks? I suppose on another level I am asking is it perfectly legal for me to hold money for a family member in my bank account?

username123

As mp22 says there is no means test for JSB.

Is it legal for you to have someone elses money in your account? I dont know, but it is a very silly thing to be doing. As you have just discovered.

Why dont your parents have their own account? It sounds suspicious - are they trying to hide money?(Im not saying they are, but its the first thing that springs to my mind, so I can imagine social welfare/revenue would think along the same lines). It just sounds like someone is trying to do something dodgy - why would you have money 'resting' in someone elses account, if you had nothing to hide surely youd just have it in your own account?

Id advise you to check the legalities of it, its a massive sum to just be 'resting' in an account in your name, you could have a hard time explaining that away in the future to revenue if they came sniffing. There could be gift tax implications, or tax implications for sums that large to be getting moved across international borders.

Edited to say - the reasons you give for it being in your account dont sound plausible, there is no reason why it couldnt have been left in a bank account in one of your parents names when they moved.

ust

Username, what you said is perfectly valid question and it is something I never really thought about when I was working as I was just doing a favour for my parents who emigrated to Australia but it went from minding €20,000 in the early years to what it is today. I have never tried to avoid paying tax on it and DIRT is deducted yearly, even though if it was in their name it would be DIRT exempt as they are over 66. I am not trying to justify it but my parents are your stereotypical stubborn 70 year old country pensioners, wary of banks and technology and wanted to hold onto some Euro currency. They tend to come back to Ireland once every 12-16 months so it sort of made sense at the time from a practicality point of view. I accept that it does sound very cloak and dagger but I hadn't anticipated it going on this long or amounting to such an amount when I first agreed to it.

username123

Sorry OP - I wasnt personally trying to cast aspersions on whats going on and I can see how these things come to be, but I was looking at it from the point of view of revenue/social welfare.

It could look like income going into your account and they could ask why no income tax paid etc... I just think you have put yourself into a very vulnerable position and quite frankly, its irresponsible of your parents to have put you in this position, you could easily be questioned and asked to produce paperwork years after the fact by revenue if they decided to sniff around.

Large sums of money attract interest, and in this country claiming not to know the law is no defence (Im talking about tax laws etc..).

I think youll get away with things re social welfare claiming for JSB as its not means tested but Id strongly advise you to 'clean up' your financial affairs to avoid future hassle.

Id take legal advice if I were you, a sum that size could be a problem to sign over to the correct ownership without attracting the attention of revenue for tax purposes - especially in todays environment where the government want to take every penny they can get from people.

eastbono

In order to claim JSB you will not be means tested. What I would be worried about is if in 12 months you are not employed your JSB will run out and you will have to apply for JSA which is means tested and this bank account will be taken into account for means testing. You should really transfer any money that is belonging to your parents to their bank account.

What is surprising is that your parents were able to emigrate to Oz at their age even in 2005. Do they have Australian citizenship?

maringo

Job Seekers Benefit not means tested. Its based on your record for 2009. But if you apply for a medical card you will be assessed on savings/bank accounts.

yabadabado

Why didnt they just set up a bank account in their name and just give you the sort code,account number and pin code.You could have done whatever they needed with the account.€85,000 in the account now minus your €7000,€78,000 accumulated from €20,000 in six years.Sounds dodgey as ****.

ResearchWill

Am I wrong in thinking non resident accounts still exist, and your parents if they had a non resident account would have not had to pay dirt. In relation to not trusting banks why do they trust the banks when your name is on account. In relation to having a euro account you can open and keep a euro account in any country. In relation to not liking Internet banking they could have allowed you to do all of that on their account.

You also said when you where working it was not a problem, how were you ever going to explain to revenue if they ever asked how in 5 years you managed to save 85k.

My advice tell your parents you are setting up a non resident account for them in Ireland, get proof that the account and money was never yours. Show how money came from parents and was spent by parents. Finally if they don't believe you then tell parents your coming out to join them or they are paying your dole out of the 85k.