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    • gary9999
    • By gary9999 15th May 17, 4:20 PM
    • 3Posts
    • 0Thanks
    gary9999
    Sons inheritance causing me benefit problems
    • #1
    • 15th May 17, 4:20 PM
    Sons inheritance causing me benefit problems 15th May 17 at 4:20 PM
    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?
Page 1
    • FBaby
    • By FBaby 15th May 17, 4:32 PM
    • 15,702 Posts
    • 39,309 Thanks
    FBaby
    • #2
    • 15th May 17, 4:32 PM
    • #2
    • 15th May 17, 4:32 PM
    She needs to put the money in a trust with your son as beneficiary.
    • gary9999
    • By gary9999 15th May 17, 4:37 PM
    • 3 Posts
    • 0 Thanks
    gary9999
    • #3
    • 15th May 17, 4:37 PM
    • #3
    • 15th May 17, 4:37 PM
    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
    • By pmlindyloo 15th May 17, 4:38 PM
    • 10,554 Posts
    • 12,469 Thanks
    pmlindyloo
    • #4
    • 15th May 17, 4:38 PM
    • #4
    • 15th May 17, 4:38 PM
    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
    • By TELLIT01 15th May 17, 5:04 PM
    • 3,694 Posts
    • 3,765 Thanks
    TELLIT01
    • #5
    • 15th May 17, 5:04 PM
    • #5
    • 15th May 17, 5:04 PM
    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
    • By Topcat1982 15th May 17, 6:03 PM
    • 340 Posts
    • 376 Thanks
    Topcat1982
    • #6
    • 15th May 17, 6:03 PM
    • #6
    • 15th May 17, 6:03 PM
    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
    • By Lioness Twinkletoes 15th May 17, 6:05 PM
    • 1,055 Posts
    • 3,410 Thanks
    Lioness Twinkletoes
    • #7
    • 15th May 17, 6:05 PM
    • #7
    • 15th May 17, 6:05 PM
    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?
    Originally posted by gary9999
    Or you could use it to improve the here and now for both of you...
    • TELLIT01
    • By TELLIT01 15th May 17, 6:07 PM
    • 3,694 Posts
    • 3,765 Thanks
    TELLIT01
    • #8
    • 15th May 17, 6:07 PM
    • #8
    • 15th May 17, 6:07 PM
    Or you could use it to improve the here and now for both of you...
    Originally posted by Lioness Twinkletoes
    If the money is specifically given to the son, the mother will have no right to use it - for whatever purpose.
    • GwylimT
    • By GwylimT 15th May 17, 6:08 PM
    • 5,777 Posts
    • 10,765 Thanks
    GwylimT
    • #9
    • 15th May 17, 6:08 PM
    • #9
    • 15th May 17, 6:08 PM
    If the money is specifically given to the son, the mother will have no right to use it - for whatever purpose.
    Originally posted by TELLIT01
    Very true, although I'm not entirely sure how the deceased are able to spend money.
    • nannytone
    • By nannytone 15th May 17, 6:09 PM
    • 12,079 Posts
    • 17,889 Thanks
    nannytone
    If the money is specifically given to the son, the mother will have no right to use it - for whatever purpose.
    Originally posted by TELLIT01
    father not mother
    • gary9999
    • By gary9999 15th May 17, 6:21 PM
    • 3 Posts
    • 0 Thanks
    gary9999
    These ISA and fund accounts seem to have a limit of just over £4000
    • phillw
    • By phillw 15th May 17, 6:56 PM
    • 672 Posts
    • 336 Thanks
    phillw
    How can i solve this problem?
    Originally posted by gary9999
    You probably should get legal advice from a solictor that deals with setting up trust funds for children. It may cost you a grand.
    Last edited by phillw; 15-05-2017 at 6:59 PM.
    • xylophone
    • By xylophone 15th May 17, 6:58 PM
    • 22,322 Posts
    • 12,883 Thanks
    xylophone
    Your MIL is going to make a will leaving your child around £26,600?

    Or she is going to write you a letter confirming that she is sending such a gift to your son?

    Are your parents still living? Or siblings? You would be happy for them to be your son's Trustees?

    You might ask them to open an account in bare trust for your son - the money could initially be paid into this account.

    This would be the source of the subscriptions as described below.

    Your son has a CTF? It would be possible for the maximum subscription to be made to this and then for the account to be transferred into JISA - the maximum subscription for the current tax year could then be made into that.

    This would potentially use over £8000 of the gift. Over the next five or so tax years, the balance of the money in the Bare Trust Account could be transferred into the JISA.

    Your child would be around 12/13 by then and the cash in the JISA would be available to him at the age of 18.
    • Mojisola
    • By Mojisola 15th May 17, 7:02 PM
    • 27,959 Posts
    • 71,099 Thanks
    Mojisola
    I am a single father with a seven year old son.

    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.

    the bank staff told me if i put this money into his account the government will stop my ESA and housing benefit
    Originally posted by gary9999
    You're taking as gospel that the bank staff are right about the effect on benefits - have you asked the DWP whether they are right?

    I understand that if you inherited the money and put it into your child's name, it would affect mean tested benefits but this is your child's inheritance and I don't think it should affect your claim.
    • teddysmum
    • By teddysmum 15th May 17, 7:38 PM
    • 8,009 Posts
    • 4,770 Thanks
    teddysmum
    You're taking as gospel that the bank staff are right about the effect on benefits - have you asked the DWP whether they are right?

    I understand that if you inherited the money and put it into your child's name, it would affect mean tested benefits but this is your child's inheritance and I don't think it should affect your claim.
    Originally posted by Mojisola
    There is the situation, though , where parents are limited to where and how much in savings they put away for a child, as this prevents unscrupulous people investing their own money in a child's name, then withdrawing the interest for themselves.


    If too much money is put into an account that parents can access, the interest is taxed as theirs.
    • Housing Benefit Officer
    • By Housing Benefit Officer 15th May 17, 9:12 PM
    • 2,321 Posts
    • 4,166 Thanks
    Housing Benefit Officer
    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?
    Originally posted by gary9999
    Bank staff are not benefit advisers so shouldn't be giving out potentially misleading information.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • Mojisola
    • By Mojisola 15th May 17, 9:18 PM
    • 27,959 Posts
    • 71,099 Thanks
    Mojisola
    There is the situation, though , where parents are limited to where and how much in savings they put away for a child, as this prevents unscrupulous people investing their own money in a child's name, then withdrawing the interest for themselves.

    If too much money is put into an account that parents can access, the interest is taxed as theirs.
    Originally posted by teddysmum
    But that is only if the money comes the parents to start with.
    • Gambler101
    • By Gambler101 17th May 17, 11:34 PM
    • 448 Posts
    • 1,092 Thanks
    Gambler101
    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.
    Originally posted by gary9999
    Reason 159995 why we are brexiting lol
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX
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