Money Deposited into a Teenager's Current Account?

Elric

Hi Everyone

I've started this new thread after searching through the forum for an answer.

My situation is this:

My step-son is 13 years old and has a current account which he has full access to without my permision or his mum's. Me and my partner receive Incapacity Benefit and are concerned about money he is about to inherit - £10,000 - from a previous step-father - will this affect the benefits I'm claiming (Namely, Incapacity Benefit, Child Tax Credit, Housing Benefit, Council Tax Benefit)?

The money won't be in his account for long, £3,500 will be invested into Premium Bonds and the rest will be spent.

Advice about this would be appreciated,

Regards, Elric

Kilty_2

Investing £3500 into premium bonds is certainly not the best way to go forward - especially if it's all that will be left of the money.

I think if the money is his and is paid to him then it cannot affect any benefits since he is not the person who recieves those.

tobedifferent

You should contact Welfare Rights or the CAB for specific advice.

On our benefit claim forms you do have to declare childrens savings over £3k. Now your incapacity benefit is not means tested so that should stay the same but as for your means tested benefits i'm not sure.

I do however agree that maybe look at a better place to save the cash!

AndyR_3

I do believe that Premium Bonds are still classed as savings, sorry.

What is the money to be spent on? Because if it's somthing for you, it could affect your benefits. You could look at some kind of trust which may avoid this though.

regularsaver1

He should put the whole £10k away for the future? - what is he spending the over £6.5k on? jeez

Wysiwyg78_2

I believe ISA's aren't counted for benefit purposes so perhaps he could put the money into one of those? You could split it amongst ISA's in his and your names perhaps?

I may have this wrong, it may only be tax credits that this is the case for.

ffacoffipawb

Wysiwyg78 wrote:

I believe ISA's aren't counted for benefit purposes.

Wrong!

They don't count for tax. They count for means tested benefits!

helpmenow_2

tobedifferent

You know if income support paid instead of incapacity benefit still counts as non means tested
I didn’t have enough stamps so went onto income support
thanks