what to do?

gibi

hi im seeking advice on behalf of my girlfriend. She recently has made a claim for an accident and the settlement is going to be around the 30-40 thousand mark. She is a single mother who is on housing benefits and working tax credits. How will this effect her benefits? Is there anyway she can save the money without effecting these benefits? She is going to put £15k into a an isa or premium bond for her child. However we have done the maths and if she was to pay her own housing it would cost around 7k a year. So if she was to loose all benefits and pay this on her own she would have no money left after around 2 years and after that what happens then?

Jo-jo

You may find this is better placed on the benefits board. If her benefits are means-tested, she will lose some /all of it.

xylophone

http://www.lindermyers.co.uk/personal-injury-trusts---some-faqs_754.html
might be of interest for information.

Be very careful about giving away money to keep or increase benefit entitlement - google "deprivation of capital".

As for giving money to her child - see http://www.direct.gov.uk/en/moneytaxandbenefits/managingmoney/planningyourpersonalfinances/dg_10013916