Whats the best way to leave someone on benefits money?

Hercules98141

Me and my Mum and Dad are unsure how we should leave money to me.
I'm not allowed to have more than £3000 in my account. If i have more I have to phone the council straight away otherwise i'm breaking the law.
An example where this has caused problems is when i had four grand mal epileptic seizures and broke my saxophone - in order to buy a new one i had to get my mum to open a savings account and save for about 1 year.
Me and my Dad decided to see a financial advisor who wasn't much help.
We're unsure if we should leave the money in the form of a house or if there is any other way we could leave it.
The main problem is that it would be disadvantageous for me if anyone left me more than £3000 as my benefits would be stopped immediately.
Can anyone offer some advice? We'd really appreciate it if anyone could help.

christabell

The amount of savings has now gone up to £6000. Why not talk to the CAB?

jamesd

Is it possible that the amount would be enough that long term you simply wouldn't need benefits because you could live on the income from investing it? With some idea of the posible amount and your age it'll be possible to work out how viable this is.

Graham_Devon

I'm dubious to answer really. While I understand that due to illness you are on benefits, which is fair enough, what your trying to do is commit benefit fraud.

If you simply cannot go to work because of illness, I thought the top you could have was £16,000.

I think the amount your talking about is a very large amount, as your talking about leaving a house. Therefore, an amount this large you could live on quite easily. It would be advantageuous to speak to CAB and your benefits officer about this.

I don't think anyone on hear wil advise on how to commit fraud? Even though I understand your position completely, that is what you sound as if your wanting to do.

We'd need to know what benefits your recieveing, £3000 is a very small amount to stop anything as far as I'm aware, though don't know the system as I don't use it.

jamesd

It's not fraud to arrange your financial affairs to maximise state benefits. Concealing thing things would be a different matter.

Robert_Sterling

We do not know enough of the facts to make a considered judgement.
I can see where you are coming from and I can also see where Graham is coming from.

Graham_Devon

jamesd wrote:

It's not fraud to arrange your financial affairs to maximise state benefits. Concealing thing things would be a different matter.

To maximise maybe, when your talking about large sums, which we don't know for sure, but when the OP said 'leave a house' I'm assuming over 100k, then tht's major fraud.

If the OP moved into this house as a home, because it's all paid for some benefits would have to go. Just the same scenario really as an OAP who owns their house outright, but only get's the state pension and no other help because they own that house.

Anyway, it's silly to start assuming. But asking where to put money to get around benefits is literally benefit fraud.

Organising it into the proper manners according to whatever benefits the OP is entitled to is a different matter altogether.

jamesd

Graham_Devon wrote:

To maximise maybe, when your talking about large sums, which we don't know for sure, but when the OP said 'leave a house' I'm assuming over 100k, then tht's major fraud.

Why is it fraud at all? It's simply choosing to leave an asset that may not count for benefits purposes. That is, prudent estate planning by the parents, no fraud involved.

Indeed, Hercules98141 gave an example where saving for a year had been used specifically because that was a way to fully comply with the requirements of the law - suggesting that the idea is to act completely legally, simply optimally.

Graham_Devon wrote:

If the OP moved into this house as a home, because it's all paid for some benefits would have to go. Just the same scenario really as an OAP who owns their house outright, but only get's the state pension and no other help because they own that house.

Yes, some benefits would no longer be applicable - housing benefit, I assume, since there's nothing for it to pay. Council tax benefit would presumably be payable, though.

Graham_Devon wrote:

Anyway, it's silly to start assuming. But asking where to put money to get around benefits is literally benefit fraud. Organising it into the proper manners according to whatever benefits the OP is entitled to is a different matter altogether.

Hiding money could be a crime. But estate planning isn't about hiding money, it's about passing it on efficiently. That's no more fraud than people here routinely advising people to use an ISA to avoid paying tax or to limit pension income to below about 20000 to avoid reductions in age allowance. It's just prudent planning.

Remember that at the moment there is exactly no benefit claim on this money; it belongs to the parents and they are fully entitled to try to maximise the amount the person on benefits will eventually receive.

black-saturn

Your allowed to have £6,000 in your account without if effecting your benefits. So why would they need to know about £3,000 going in? Once a year they check you bank statements. It will show up on your statements and they would see it but it shouldnt effect your benefit. If you go over £6,000 put the excess in an ISA.

Bogof_Babe

I am sure that savings in an ISA count as capital just the same as anywhere else. The only difference is that tax is not levied on ISA interest.

I too would like some more info from the OP, as it does sound like he/she wants the taxpayer to support him/her rather than having to use their own resources.

I believe benefits connected with disability are not affected by the amount of capital owned, but I don't see why the public should pay income support for someone with large reserves of funds in their own right.

Paul_Herring

Would money inherited put straight into a pension attract much interest from the DHSS (or whatever they're callling it these days?)