Parental Financial Help can backfire - beware

mumps

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.

alyth

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

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.

alyth

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

mumps wrote: »

Probably more than you think.

Or fewer than you do - who can tell?

mumps

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.

whitfreak

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