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Parental Financial Help can backfire - beware

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Comments

  • mumps
    mumps Posts: 6,285 Forumite
    Home Insurance Hacker!
    Oldernotwiser wrote: »
    I assume he's talking about the effect on means tested benefits when the claimant has savings.

    I suppose it might be relevant for all those parents who just dump over £6K in their offspring's account; hands up all those who're in this situation!

    Probably more than you think.
    Sell £1500

    2831.00/£1500
  • alyth
    alyth Posts: 2,671 Forumite
    Oldernotwiser wrote: »
    I assume he's talking about the effect on means tested benefits when the claimant has savings.

    I suppose it might be relevant for all those parents who just dump over £6K in their offspring's account; hands up all those who're in this situation!

    I'm afraid mine do - it's called gifting to avoid them paying too much tax! I'll be self-funding my way through uni but I will take the student loan and invest it. But then I'm a bit older than the average student - and I work and have low outgoings.
  • nearlyrich
    nearlyrich Posts: 13,698 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Hung up my suit!
    There is no tax break for supporting student offspring as far as I am aware, if they have introduced it since 2007 I will be surprised.
    Free impartial debt advice from: National Debtline or Stepchange[/CENTER]
  • alyth
    alyth Posts: 2,671 Forumite
    no they gift to avoid inheritance tax issues - and they're just generally nice parents! Sorry, I should have put that rather than making them sounding as if they are avoiding paying tax.
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    mumps wrote: »
    Probably more than you think.

    Or fewer than you do - who can tell?
  • mumps
    mumps Posts: 6,285 Forumite
    Home Insurance Hacker!
    Oldernotwiser wrote: »
    Or fewer than you do - who can tell?

    Who indeed. But I know I give mine almost that (the rest made up by her grant which is small) most of her friends get round that and my boss gives his considerably more.
    Sell £1500

    2831.00/£1500
  • whitfreak
    whitfreak Posts: 276 Forumite
    I've had a quick read around. The Job Seekers Allowance Capital Allowances.
    Lower Limit £6000
    Upper Limit £16000

    For every £250 (or part of) over the lower limit £1 is removed from your allowance. Over the Upper Limit and you cannot claim the JSA.

    So its worth thinking about, but only if the student is actually saving money . Its not a panic! Stop giving your kids money.

    Heres a link to the DWP's Benefits and Pensions booklet where I've quoted from.
    http://www.jobcentreplus.gov.uk/JCP/stellent/groups/jcp/documents/websitecontent/dev_015666.pdf
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