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Question re means-tested benefits. Help please!
Comments
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No it's not. It's never too late. Get it done now and save any complications. If the money is in the children's names with restricted access then it can't be classed as her own savings.
As the transfer would be seen to be done after she knew she needed to claim benefits, it would be assessed as DOC.0 -
You have said yourself you will find it impossible to prove the money was given to you for the children.I am a single mother with two teenage children (15 and 14). I no longer have any contact with their father as he was violent. However, his father (the children's grandfather) was a lovely man who wanted to provide for his grandchildren after his days(my children were his only grandchildren) . His wife had died and we were the only family he had. (He was 72 at the time.). His son, my ex, and I were never married and separated when the children were toddlers. He ALWAYS said he would contest his fathers Will if he left any money to myself or his own children! (Yes you read that correctly; my ex resented his father leaving money to our children) He resented my close and loving relationship with his father and his father did not want his son to have the money as he knew it would be gambled away - his life's work.,
Therefore, the Grandfather gave me £60,000 WITHOUT his sons knowldege to KEEP for the children whey they reached 21. He was in sound mind and had kept knowldege of his captital from his son. The problem I have now is that I need to claim benefits and I am being asked about savings. My OWN personal savings amount to £6,500 and does not afftect it (anything over £16,000 removes benefit entitlment. I do not want to declare this money as I am afraid it will be classified as savings and I will have to live on money that is one, not mine, and two, money I should and would not have in other circumstances. I am holding my childrens future inheritance. The Grandfather now has dementia and I do not want to involve him in any claim-making; there is also a chance my ex will become aware of our arrangement and he will try all he can to retrieve the childrens inheritance. This could involve lengthy and costly court battles for which I do not have the health or the resources. (I don't think I can even prove the money was given to me as the Grandad withdrew cash in bits and pieces over a 6-month period to give to me to avoid an obvious paper trail so his son would not suspect if he died suddenly).
I now have a severe (not life threatening) illness which means I will not be able to work again ( this is a fact and willnot change) and so must claim assistance from ESA and Housing benefits and other menans-tested benefits. I PROMISED the childrens Grand-dad I would hold onto this money and he trusted me to do it.
PLease advise as I do not know where to turn. I know claiming benefits will technically not be breaking the law as this money is neither mine nor my savings. It is a future inheritance for my daughters for which I have promised to be responsible. However, I need to know if there are any laws to clarify this situation, and how can I best keep this money safe without it affecting my claim to benefits which I sorely need? I do not have anyone else in whose name I could put it.
Warm Regards:think:
I think the only way now is to use this money for the care of the children in this time of need. It's too late to try and put it in trust now or to put it in the childrens names and it's also too much to spend.
You could have borrowed money against your salary and used it as a deposit on a house and you would not have it today but it's all too late now.
You can claim child tax credits they are not affected by capital. Income support for yourself would be £71 a week that you could withdraw from your own £6,500 each week and the £60,000 of money will have to be used to house yourself and the children for whatever you rent is. If you could learn to live on that amount of money only and don't spend any more then it is for the benefit of the children then I don't see the problem with that. If your rent is about £500 a month that would mean the money would last for 120 months - 10 years. As the youngest is only 14 that is only another 4 years until you can give the remainder to them anyway and live in a shared house somewhere at minimal rent.
You can claim contributions based ESA for a short period so you may not even have to withdraw your own £71 a week as that is not means tested.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
thistledome wrote: »How is it fraud when it's not her money? Are children's savings taken into account for means-tested benefits? (genuine question, I've never had to claim them).
On the information given, it is her money - she has access to it and is able to use it. It would be treated differently if she has documentation to support the fact that it is not hers, but this does not appear to be the case.
Children's savings are no longer counted as capital for the claimant, however they will still be checked if large amounts are suddenly transferred to them.
(Edit: Crossposted!)Contact your bank or solicitor and arrange to have this money transferred into a trust. You can agree the details with the bank.
Mojisola is correct - if you did this shortly before applying for benefits, it would prompt the DWP to ask why, and even if she no longer has access, it could be treated as notional capital.0 -
I think they ask you if the children have any savings dont they?
And I dont think it would be wise to say they haven't got any because of when the interest is paid into the account.No it's not. It's never too late. Get it done now and save any complications. If the money is in the children's names with restricted access then it can't be classed as her own savings.
Unfortunately it is too late as she is transferring the money to ensure she gets benefits.Im sure they will ask if the children have got savings,even if it is in there names??
No, they do not ask about children's savings in their own accounts with no access by the parents.
There is a question "Have you had over £6,000 in the last X years/months" She would have to answer yes. They would look at the bank statements and ask about a large £60,000 withdrawal to which she would have to answer "given it to the kids":footie: Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
However, his father (the children's grandfather) was a lovely man who wanted to provide for his grandchildren after his days(my children were his only grandchildren).
Therefore, the Grandfather gave me £60,000 WITHOUT his sons knowldege to KEEP for the children whey they reached 21.
It's a great shame you didn't take advice when the money was given to you.
It may have caused some delays but your ex wouldn't have got very far trying to contest a will that left money to the children.0 -
Unfortunately it is too late as she is transferring the money to ensure she gets benefits.
No, they do not ask about children's savings in their own accounts with no access by the parents.
There is a question "Have you had over £6,000 in the last X years/months" She would have to answer yes. They would look at the bank statements and ask about a large £60,000 withdrawal to which she would have to answer "given it to the kids"
I was only advising on my husbands experience. he claimed JSA for a short period of time,and they asked has your child got any savings...So I assumed they could only have a certain amount.0 -
As long as she is able to provde a copy of the trust agreement and the names of the trustees it would satisfy the DSS.
That would only be the case if the trust had been set up before she needed to claim benefits. As she now has such a need, it is too late to set up a trust.
I guess you have not updated your knowledge for a good few years, the DSS ceased to exist long ago (2001?).0 -
Actually my knowledge is very up-to-date. Common sense prevails in all situations and if the money is in a trust for her children then she can't get at it. Putting it there to avoid being disqualified for benefits is a rational and legal way of disposing of it.0
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It is...but before the need to claim benefits arises.Actually my knowledge is very up-to-date. Common sense prevails in all situations and if the money is in a trust for her children then she can't get at it. Putting it there to avoid being disqualified for benefits is a rational and legal way of disposing of it.:footie: Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0
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