Child Trust Fund Savings

Cam1970_2

Hello

I'm a long time lurker, first time poster. I've read a lot but just wanted your opinions on the following:

Would saving to my childrens Child Trust Fund Accounts instead of saving in my name be classed as deprivation of capital? I am asking because I have 2 disabled children and I would like to save for their future and have it locked away in the CTF until they are older as they are disabled and unlikely to ever be self-sufficient (mental and pysical disabilities).

I receive IS and DLA and Carers. Ex hubby provides maintenance.

Perhaps I should prepare for the backlash which will say, if you can afford to save, you shouldn't be on Income Support. Eeeek!

Cam1970_2

Bump!

allen35

Cam1970 wrote: »

Hello

I'm a long time lurker, first time poster. I've read a lot but just wanted your opinions on the following:

Would saving to my childrens Child Trust Fund Accounts instead of saving in my name be classed as deprivation of capital? I am asking because I have 2 disabled children and I would like to save for their future and have it locked away in the CTF until they are older as they are disabled and unlikely to ever be self-sufficient (mental and pysical disabilities).

I receive IS and DLA and Carers. Ex hubby provides maintenance.

Perhaps I should prepare for the backlash which will say, if you can afford to save, you shouldn't be on Income Support. Eeeek!

If it's not extravagant amounts you are thinking of, don,t see a problem.

There is a limit you can put in anyway which is £1200 pa

Js_Other_Half

Might be worth contacting cerebra. They offer £350 voucher towards solicitors costs to draw up a will and discretionary trust:
http://www.cerebra.org.uk/parent_support/support/wills_and_trusts

" The voucher is worth up to £350 towards the cost of a solicitor preparing a will and discretionary trust to make provision for your child’s future.
Your child must have a brain-related condition, be aged 16 or under and be receiving the Middle or High Rate of the Care Component of Disability Living Allowance (DLA)."

Cam1970_2

Thank you for your replies.

Allen: I know I can only invest £1,200 per child in their CTF per year but I was worrying about the cumulative effect. If I saved £1,200 per year for each of them, in 4 years I would put £9,600 in their CTF's. I worry that the Job Centre Plus or DWP would then turn round and say "you could have saved that money in your own name, not in the CTF's and therefore you should have reduced IS" (as it would be above the £6k savings threshold if I'd have saved that up myself).

JS: Thank you for the info and link but I don't think it's going to be of help to me. One child gets high rate care and mobility, the other gets middle rate care and low mobility. Both children have an undiagnosed condition despite MRI scans, neurology tests, etc, etc. All the "specialists" can tell me is my children are not normal and in their opinion will never be normal. They will never catch up. They attend a Special Needs school and need one-to-one support throughout the day.

I already have a will in place. I just want to put a bit more aside in their names for when I'm gone to make sure they have a cushion to fall back on.

Anyway, thanks again for your replies. I think I'll bring it up at my next Job Centre Plus appointment.

allen35

I'm sure the extra money to be put away is from the childrens DLA and therefore should be a good enough reason if questioned, this could be there own pocket money or from other family members as they are entitled to put money into CTF themselves-birthday/christmas money etc.

There would be a serious problem if it affected your benefits as the reason for the CTF was to save for the children.

allen35

Just found this:

Child Trust Fund and benefits

48

The CTF is not taken into account for any claims for benefits or tax credits before the child reaches the age of 18.