Banking money for son with disability

[KOW]

My wife received a monthly cheque for our disabled son up to the age of sixteen ie Domicilllary allowance.
From the age of sixteen up until last year (7 yrs time frame]my son received disability allowance approx 188 per week.
This was put away for him by my wife.
My son now 23 graduated and working is at an age where we all agree is well capable of looking after his own financial affairs.
Would a large sum totaling tens of thousands cause problems if it was to be lodged into his name.

 

[24601]

He should be fine. There doesn't appear to be any issues surrounding capacity so he should be perfectly able to open a bank or credit union account without issue. He'll probably have to declare the source of funds for the purposes of compliance with anti-money laundering requirements given the sum but this should amount to little more than signing an additional form.

 

[RedOnion]

You'll have no issues from banking point of view. If he doesnt already have a bank account, you might consider speaking to the bank about their treatment of vulnerable customers to see if that might be an appropriate approach in the case of your son. Having it flagged should mean they will take the appropriate time to explain things with him, and depending on the bank the auto flagging of suspect transactions.

However, you need to have a look at the transfer from a gift tax point of view. No issue if the money was obviously always his (easier to evidence if the money was segregated into a separate savings account for example).