Sons inheritance causing me benefit problems

gary9999
gary9999 Posts: 3 Newbie
in Benefits & tax credits
I am a single father with a seven year old son. My wife died last year. She was Bulgarian. I am English. I am disabled and live in a council flat. My only income is ESA/DLA and child benefit. My mother in law is seriously ill and probably won't last more than a few months. She has savings of around £80,000 which she wants to split equally between my son and her two other grandchildren. I opened a savings account for him and the bank staff told me if i put this money into his account the government will stop my ESA and housing benefit because i will be expected to live on this money even though it is not mine. I can't believe they expect me to steal from my son. The money is for his future and has nothing to do with me. I am just in control of the account until he is old enough to manage it himself. How can i solve this problem?
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Comments

  • FBaby
    FBaby Posts: 18,367 Forumite
    First Anniversary First Post Combo Breaker
    She needs to put the money in a trust with your son as beneficiary.
  • gary9999
    gary9999 Posts: 3 Newbie
    She is in Bulgaria. Without going into detail about Bulgarian politics the country is basically a lawless slum controlled by the !!!!!. Money left there in banks/trusts/bonds is not safe.
  • pmlindyloo
    pmlindyloo Posts: 13,049 Forumite
    Name Dropper First Anniversary First Post
    Or you can put the money into a junior ISA which no one can access until the 'child' is aged 18 years.

    Since you would have no access then this would not be counted as your capital.

    There is a limit to how much you can put each year so you would have to open several ISA's.

    Read this:

    http://www.moneysavingexpert.com/savings/junior-isa

    And please make sure a will is in place to stipulate how the money is divided.
  • TELLIT01
    TELLIT01 Posts: 16,453 Forumite
    First Anniversary First Post Name Dropper PPI Party Pooper
    Child trust fund is the way to progress this, but it is vital that there is some form of legal documentation to support the fact that the gift from the mother-in-law is for your son if the money is to pass through your account.
  • Topcat1982
    Topcat1982 Posts: 391 Forumite
    She is in Bulgaria. Without going into detail about Bulgarian politics the country is basically a lawless slum controlled by the !!!!!. Money left there in banks/trusts/bonds is not safe.

    A trust fund here, not Bulgaria. Or a Junior ISA. As long as you can't touch it, it won't affect your benefits.
  • Lioness_Twinkletoes
    Lioness_Twinkletoes Posts: 1,573 Forumite
    gary9999 wrote: »
    The money is for his future and has nothing to do with me. I am just in control of the account until he is old enough to manage it himself. How can i solve this problem?

    Or you could use it to improve the here and now for both of you...
  • TELLIT01
    TELLIT01 Posts: 16,453 Forumite
    First Anniversary First Post Name Dropper PPI Party Pooper
    Lioness_Twinkletoes wrote: »
    Or you could use it to improve the here and now for both of you...

    If the money is specifically given to the son, the mother will have no right to use it - for whatever purpose.
  • GwylimT
    GwylimT Posts: 6,530 Forumite
    Combo Breaker First Post
    TELLIT01 wrote: »
    If the money is specifically given to the son, the mother will have no right to use it - for whatever purpose.

    Very true, although I'm not entirely sure how the deceased are able to spend money.
  • nannytone_2
    nannytone_2 Posts: 12,946 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    TELLIT01 wrote: »
    If the money is specifically given to the son, the mother will have no right to use it - for whatever purpose.

    father not mother ;)
  • gary9999
    gary9999 Posts: 3 Newbie
    These ISA and fund accounts seem to have a limit of just over £4000
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