Childrens Inheritance and Benefits

tazwhoever

I have checked the manual and need someone to clarify OP question – Read 470 page and trust account information. If parent can hold the money (trustee)?

http://www.dwp.gov.uk/docs/hbgm-bw1-assessment-of-capital.pdf

Thanks

Oldernotwiser

A diagnosis of cancer is not a death sentence.

DUTR

Oldernotwiser wrote: »

A diagnosis of cancer is not a death sentence.

Very true

magpiecottage

I think it would depend how the Trust was established.

Specifying that the benefits cannot be released until a child was 18 would mean the mother clearly could not use them for her own benefit.

If they are allowed to be used earlier, then in theory it could be argued that she could use them to provide for the children in ways that she could otherwise claim benefits for.

Given the intention of the government to clamp down on expenditure, this might be something they would look at closely. If that happened, it could be argued that a sole Trustee may not release the property of a Trust for their own benefit.

However, I think a Trustee other than the mother (not a bank or solicitor who will charge) will make sense.

You can also set up Trusts that run beyond age 18.

The benefits can be donated and a Trust established now or it can be established within a Will.

Gavkar

Hi can anyone pls advise on the best account for my children who are due to recieve £30,000 each inheritance from their Grandmother. I am the executor and Trustee of the Will and it also stated in the Will that I can (as Trustee) apply for advancements when and where i see fit, e.g for education or maintenance purposes. Obviously I would like my children who are 2 and 12 to earn the most interest possible, I would also like to keep a small amount e,g £2000 each available for such things as school trips etc.... Any advice would be greatly appreciated.

bertiebat

Oldernotwiser wrote: »

A diagnosis of cancer is not a death sentence.

DUTR wrote: »

Very true

Don't be silly, it can be. It depends whether it's been caught early enough. 'A diagnosis of cancer is not always a death sentence' is maybe more accurate and a very valid comment.

karenx

Gavkar wrote: »

Hi can anyone pls advise on the best account for my children who are due to recieve £30,000 each inheritance from their Grandmother. I am the executor and Trustee of the Will and it also stated in the Will that I can (as Trustee) apply for advancements when and where i see fit, e.g for education or maintenance purposes. Obviously I would like my children who are 2 and 12 to earn the most interest possible, I would also like to keep a small amount e,g £2000 each available for such things as school trips etc.... Any advice would be greatly appreciated.

Bear in mind that if you need to apply for means tested benefits as this money will also be available to you it will counted as your savings

Oldernotwiser

bertiebat wrote: »

Don't be silly, it can be. It depends whether it's been caught early enough. 'A diagnosis of cancer is not always a death sentence' is maybe more accurate and a very valid comment.

A diagnosis of cancer isn't usually a death sentence. "Catching it early " isn't the main indicator - the site of the cancer is.

Gavkar

The money will be in the childrens names in their own accounts so therefore how could it be classed as my savings? I dont claim any benefits, if Ive got this all wrong from your reply then I apologise but Im confused!!

dmg24

Gavkar wrote: »

The money will be in the childrens names in their own accounts so therefore how could it be classed as my savings? I dont claim any benefits, if Ive got this all wrong from your reply then I apologise but Im confused!!

You might want to read up on how trusts operate.