savings and benefits

john10000

good morning trying to find a answer to a question but no luck yet am sure i will find it on here,i realise all benefits are means tested and you are allowed 16,000 in savings etc but after 6,000 it is calculated as 1 pound in every £250,if you inherit say 25,000 i know you must declare this as not to would be fraud, but are you allowed to do certain things with the money first which is acceptable eg put a certain amount of money in your childrens accounts for uni further education etc,change ur car from a old banger to some thing decent,have a nice holiday you have never had for years as you could just not afford to, basically what can you do that wont be classed as you trying to get rid of your capital does a list exist with options on it?, thanx for any advice

Caz3121

some of these items will be allowed and others not...eg if the money has been left to you and you choose to put some in your childrens names you may well find you will still be treated as if you have the month.

You need to tell them when you get the money, over £16k will mean all means tested benefits stop. Then keep receipts for items so the decision maker can decide what is reasonable. If they feel you have spent in order to receive benefits you may find they still count this money as notional capital

john10000

thank you for your reply some interesting comments i suppose they must appreciate your life style would change as in car etc,as for childrens accounts any money paid into them would be a min amount for uni etc not excessive which would look like you were trying to dispose of capital but if this money was classed as you still having it and you proved 8 years in the future that it was used for your childrens education etc and it did effect your benefits can you claim what you lost back ?

HappyMJ

john10000 wrote: »

thank you for your reply some interesting comments i suppose they must appreciate your life style would change as in car etc,as for childrens accounts any money paid into them would be a min amount for uni etc not excessive which would look like you were trying to dispose of capital but if this money was classed as you still having it and you proved 8 years in the future that it was used for your childrens education etc and it did effect your benefits can you claim what you lost back ?

No you cannot claim what you lost back... If you need or want to dispose of capital to keep receiving benefits then you must try and do it in a way that does not appear to be DOC. Do you own a house? You could use this opportunity to buy one to live in. If you can't get a mortgage then even a shared ownership property you owning your share without a mortgage and with the council paying the rent on the unowned portion will be acceptable. You can spend a lot of money furnishing it.

john10000

ok i see so just by putting the min amount in for education etc could still be classed as disposing of it,i dont own any property and am not trying to dispose of capital just doing the normal things you would do if you did not claim benefits worked and say won 25,000 on the lottery, you would have a nice holiday new car etc and think the majority of parents would give a little to their children for a kick start in life when they got to 18 which they would certainly need the way the country is at the present time

nannytone_2

but you DO claim benefits!

If you worked and the state didnt need to subsuduse you, then obviously, getting 25k would allow you to have all kinds of desireable extras.
But you cant expect to use the windfall in the same way when the state is paying for your living expenses.

[Deleted User]

john10000 wrote: »

ok i see so just by putting the min amount in for education etc could still be classed as disposing of it,i dont own any property and am not trying to dispose of capital just doing the normal things you would do if you did not claim benefits worked and say won 25,000 on the lottery, you would have a nice holiday new car etc and think the majority of parents would give a little to their children for a kick start in life when they got to 18 which they would certainly need the way the country is at the present time

if you assume that any"not normal"ways of spending the 25k will be DOC then you are half way there
putting some of the money into your childrens name will almost certainly be DOC,whereas updating a clapped out car with something better(i.e not a ferari)might not be
as advised above you tell them you have the 25k and then means tested benefits stop,when you have below 16k you tell them again BUT be prepared to provide receipts for your spending
do as you are being advised will seem to suggest you want to do the right thing,keep looking for ways to dispose of the money might not

real1314

john10000 wrote: »

ok i see so just by putting the min amount in for education etc could still be classed as disposing of it,i dont own any property and am not trying to dispose of capital just doing the normal things you would do if you did not claim benefits worked and say won 25,000 on the lottery, you would have a nice holiday new car etc and think the majority of parents would give a little to their children for a kick start in life when they got to 18 which they would certainly need the way the country is at the present time

Would you think it reasonable for someone with income of £10k, who has no savings but pays tax and works for 32 hours a week; to subsidise the holidays, cars and educational desires of someone with £25,000 in the bank, who doesn't pay tax and does not work?

skintandscared_2

john10000 wrote: »

ok i see so just by putting the min amount in for education etc could still be classed as disposing of it,i dont own any property and am not trying to dispose of capital just doing the normal things you would do if you did not claim benefits worked and say won 25,000 on the lottery, you would have a nice holiday new car etc and think the majority of parents would give a little to their children for a kick start in life when they got to 18 which they would certainly need the way the country is at the present time

Yes, but if someone who did not claim benefits won £25k on the lottery they could spend it on whatever they liked because they wouldn't then be expecting the taxpayer to pick up their bills!! I'm sure there are lots of hardworking parents (mine included) who would like to/like to have been able to save up and fund their children's further education but just couldn't afford it. My "kick start" was a salt and pepper mill set as a moving-in present to my new home and I've managed to get by

john10000

thank you for all the advise i understand and respect all the points that have been made,but when it comes to benefits i feel they are seperated into two catergorys a person that has never worked paid nothing into the system and does not want to work, and a person that has worked paid into the system and still wants to work,

i have worked for 25 years paid all my tax and ni contributions never claimed a penny , i want to work but unfortunatly the situation is not in my control my health comes first which i feel is a priority that should be number 1 in any bodies life,and to have to jump through hoops go to tribunrals to prove your honesty is wrong there should be more respect there not just for that indirvidual claiming but the doctors,consultants etc that back your claim up from the start this is medical evidence that is always over whelming proof in any court case so why is it such a complicted issue when cl;aiming benefits,on the benefit side i see my self just getting back in benefits what i paid in to the system and at the moment its only the interest i have recieved that has been made over the years and nothing else so i do not see any body helping me with housing etc every person is different this is the reason why i class 25k as the same weather i work or claim benefits and would spend it in exactly the same way like i stated .

xylophone

State benefits are there as a safety net while you are in need.
If you had had £25000 in capital at the point where you started to need means tested benefits, you would have been required to help yourself before calling on the state. I don't see any difference between starting in that position and being required to part self fund if you come into a windfall?