CTF affect benefits?

raven83

Just a quick question, does child trust fund over 5k affect income based benefits?

raven83

does anyone know?

rogerblack

It does not - you can't get to the money until the child is 18, so it's not counted for means-tested benefits.

raven83

rogerblack wrote: »

It does not - you can't get to the money until the child is 18, so it's not counted for means-tested benefits.

Thankyou so much, i have been worrying about it. Also do i need to declare it on the benefit form?

xylophone

rogerblack wrote: »

It does not -

you can't get to the money until the child is 18, so it's not counted for means-tested benefits.

The "registered contact" (usually a parent), can only
tell the account provider how to invest the funds and run the account
move the account to another provider
change the type of account
The money cannot be removed from the CTF.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ChildBenefitandChildTrustFund/ChildTrustFund/WhentheChildTrustFundisupandrunning/DG_193644
The child can't take money out of the account until he is 18 years old
"When your child is 16 years old
When your child is 16 years old, they take over their CTF account. This means they will need to apply to become the registered contact for the account.
Once your child becomes the registered contact, they can get statements and make changes to the account. For example they will be able to change provider or move to a different type of account.
Your child still won't be able to touch the money in the account until they are 18 years old."

The basic advantage of the CTF is that income and capital gains are tax free on child and parent.

I think that anyone with capital /income who decided to give it to a child (even via a CTF or JISA) in the knowledge that this would enable him to claim means tested benefits might be on a sticky wicket though - possibly the "deprivation of capital" rules would apply?

raven83

xylophone wrote: »

[/B]
The "registered contact" (usually a parent), can only
tell the account provider how to invest the funds and run the account
move the account to another provider
change the type of account
The money cannot be removed from the CTF.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ChildBenefitandChildTrustFund/ChildTrustFund/WhentheChildTrustFundisupandrunning/DG_193644
The child can't take money out of the account until he is 18 years old
"When your child is 16 years old
When your child is 16 years old, they take over their CTF account. This means they will need to apply to become the registered contact for the account.
Once your child becomes the registered contact, they can get statements and make changes to the account. For example they will be able to change provider or move to a different type of account.
Your child still won't be able to touch the money in the account until they are 18 years old."

The basic advantage of the CTF is that income and capital gains are tax free on child and parent.

I think that anyone with capital /income who decided to give it to a child (even via a CTF or JISA) in the knowledge that this would enable him to claim means tested benefits might be on a sticky wicket though - possibly the "deprivation of capital" rules would apply?

I never gave my children any money for the ctf, it was inherited in 2004 when my mother passed away so i haven't deprived any capital as it was never mine nor did i ever have access to it. Plus OH was working back then when the money was invested so that doesn't apply.