childrens savings classed as an asset?

HappyMJ

GlasweJen wrote: »

They ask for bank statements for all accounts for the last 3-6 months.

If you bought a regular family car because your old one wasn't suitable any more that would be ok, if you bought a merc just because you fancied one you'd be depriving yourself of capital and they would just assess you as if you still had the money.

Are there rules against buying Merc's? I didn't think there were. A few years back a friend of mine bought one on benefits a 1993 190E 2.0L. Cost him £500. Whilst on benefits he did it up. Mechanic by trade then sold it 6 months later for £1000.

shikoku

There are rules against deprivation of capital for any purpose if it is deemed to have been done with a view to making oneself eligible for means tested benefits.

£15000 worth of baked beans suddenly purchased would be just as suspect.

zzzLazyDaisy

OP, in your other thread you say that you have income protection insurance that will pay out 65% of your salary for 12 months if you are made redundant. Given that this is calculated on gross pay, this is pretty close to full salary once you take into account the fact that there are no deductions for tax/NI/pensions from that figure.

On that basis it is highly unlikely that you will qualify for any means tested benefits for 12 months after you are made redundant... and you haven't even lost your job yet.

You may be lucky and get another job in that time, but anyway, no-one can tell you what the rules are likely to be over a year from now, so you are probably looking too far ahead at the moment.

oldestrocker

echoes008 wrote: »

Thanks. First of all I will close all unnecessary bank/building society accounts that way I don't have to run around looking for statements.

I have to smile at that comment. If only my neighbour had done that when she remarried 12 years ago. She received a substantial settlement (£350,000) from her ex husband (to buy her out of the jointly owned business 16 years ago). She placed the money in a tax free NSI savings account in her previous maiden name. It still stands there!! Having remarried she 'as she puts it' very wisely retained that account in her maiden name and nobody is the wiser. The address still showing is her sisters address.

She and her current husband now claim Pension Credit and quite rightly have disclosed all of their accounts excepting the one in her maiden name.

Her answer is that it is her security - not to be used by her current husband to pay his personal debts off with!!

I think that this is a cheek, claiming benefits when she has that amount in an account in a name she last used over 40 years ago, except when it was convenient to re use it when she wanted to hide her cash away after the divorce. I don't know if her 'new' husband knows that it exists - My wife and I have been friends with her and her ex since when we were in our 20's and she always comes to us with her problems!

I can understand why she has done it, as her current husband has enjoyed a Champagne lifestyle on beer income for years - mainly by using credit that he obtained. But that is another story - what came in went out and more besides, cruises, cars, clothes etc etc. Now he hasn't got a pot to p**s in!!!!

Will they ever catch up with her - course they will - probably when she dies and the executor of her estate has to account to the DWP for the value of her savings!!!

FBaby

I assume children savings are only taken into account when it is the parent considering claiming benefit who is feeding it? I can imagine a divorced dad putting money aside for his child but benefits saying this needs to be used by mum before she can claim benefits....

fluffymovie

Childrens savings are disregarded for Hb/ctb and have been for a number of years

echoes008

zzzLazyDaisy wrote: »

OP, in your other thread you say that you have income protection insurance that will pay out 65% of your salary for 12 months if you are made redundant. Given that this is calculated on gross pay, this is pretty close to full salary once you take into account the fact that there are no deductions for tax/NI/pensions from that figure.

Yes I am looking far ahead as I don't trust the insurance company. They always try to get out of paying anything.

I take it when I apply for for contribution based JSA, I don't have to provide bank account/ savings/ assets details.

zzzLazyDaisy

echoes008 wrote: »

I take it when I apply for for contribution based JSA, I don't have to provide bank account/ savings/ assets details.

That's right. Contribution based JSA is not means tested.

The JSA will however be taken into account as income by the insurance company and deducted from the payment you receive.

echoes008

zzzLazyDaisy wrote: »

That's right. Contribution based JSA is not means tested.

The JSA will however be taken into account as income by the insurance company and deducted from the payment you receive.

So from what I gather from you post, I won't get anything from word go (in terms of contribution based JSA) , if I get anything from the insurance company?

hbgirl

just to agree with fluffymovie because there seems to be some confusing advice here. i don't know about JSA, but for housing benefit and council tax benefit childrens savings are ignored.

there would only be a problem, if you had your own savings, wanted to claim benefit, and deliberately put it into your children's name just before you claimed.

as you have been saving it for some time there should be no problem with these savings.