Can I Protect My Savings While on Benefits?

Ravenshade

I suggested both legal and illegal methods.

Please note that morally wrong is not the same as illegal. For instance, nowhere can I find that paying off a debt is considered 'disposing' of savings. Tying up the money in a trust fund, while morally questionable is also not illegal, but should one look into it, they'll find it's not quite as simple as it seems.

Placing the money into a pension pot and then claiming benefits 6 months down the line would also be legal.

Paying off an old debt as with the mortgage is also legal.

I haven't yet heard of a case where HMRC or the DWP have actually gone after someone for paying off a valid debt. Whether that money comes back at a later date or not wouldn't matter, it would later be counted as income however. The pension one is of course dubious as you will also have an added expense to keep up at £30 a month or so.

So can you protect your savings...yes but it involves immoral acts.

The OP can declare the pension and if it is over 6 months old, the Op would not have to declare a Mortgage paid or a debt paid and even if it was within the six months... there's a reasonable defense of trying to prevent oneself from becoming homeless by paying off all debts (or at least attempting).

As for the trust fund, provided that the creator ties up the money for say, the children or in trust for managing something or other (as I said, it gets complicated) then this might be construed as disposing of savings. However a prior written agreement would kibosh that prosecution argument as it is a contract therefore a debt.

It isn't strictly lying, the intention is to protect savings, which is morally wrong in this regard but does not contravene the rules, depending on how a person goes about it.

...purchasing a lot of bit coins basically makes the money vanish... you would have to explain that one but I'd wish them luck tracing it. (i.e they're likely to chase you for illegal savings dump unless you do it way in advance over the course of time).

amcg100

I think it is pretty awful that a working man is accused of potential fraud and threatened with other other criminal consequences when he seeks to protect all that he has into his old age. On the backdrop of the bankers bonus and the politicians expenses it seems a little rich. One law for the rich and another for the poor - has always been the way..............

dandelionclock30

Too right, look at how the Government behave and sort themselves out all the time.Also people like fatty Gary Barlow and Jimmy Carr with their tax avoidance schemes and Starbucks and Amazon.They are the people/organizations who should be getting into trouble not people wanting to protect modest savings.

HB58

I believe that one is allowed to make any loan payments that are due and to continue paying your mortgage at your usual rate. Paying off loans early is, I believe, classed as DOC.

missapril75

rogerblack wrote: »

Doing this is a clear case of deprivation of capital, and will lead to at least an overpayment, at best, and criminal prosecution at worst.

If discovered.

But at least one won't be "!!!!less and irresponsible" like the others.


I see the language filters don't recognise the correct spelling of that F word. :rotfl:

Naf

midnight_express wrote: »

What you are proposing is fraud and is criminal offence and yes they can check all accounts. You would be amazed at what they can and do find out.

No, what the OP is asking is NOT fraud. There was a similar thread fairly recently with similar conclusions.
The OP is asking for legal means they could employ so that their savings do not affect benefits. The fact that there are none doesn't mean that asking the question of IF is fraud.

A pension pot would, I presume, not affect benefits; but then it's not savings in quite the same way...

Mojisola

Naf wrote: »

A pension pot would, I presume, not affect benefits; but then it's not savings in quite the same way...

If you put money into the pension pot after it becomes likely that you will need to claim means tested benefits, it will be assessed as DOC. Not fraud maybe, but no benefits either.

Dunroamin

missapril75 wrote: »

If discovered.

But at least one won't be "!!!!less and irresponsible" like the others.


I see the language filters don't recognise the correct spelling of that F word. :rotfl:

I blame Father Ted.;)

Dunroamin

Naf wrote: »

No, what the OP is asking is NOT fraud. There was a similar thread fairly recently with similar conclusions.
The OP is asking for legal means they could employ so that their savings do not affect benefits. The fact that there are none doesn't mean that asking the question of IF is fraud.

A pension pot would, I presume, not affect benefits; but then it's not savings in quite the same way...

When someone asks whether accounts can be checked and whether there are accounts that can avoid this checking then they're clearly looking for advice about how to commit fraud.

mrobsessed

The pension idea is out as I don't have one (another thing to regret). I assume it would be far too late to set one up with only about 6 weeks of employment left.

What is a bitcoin?

I looked into Premium Bonds but it turns out this is just another type of saving account.

I will probably pay a few K off the mortgage (I can only pay 10% a year off the balance, which is quite low anyway) and spend a bit on the house, such as decoration and new carpets. Do I need to ask permission first to spend my own money on such fripperies?

At the time of redundancy I'm going to have about 15K max to play with, so its not a very big sum, and after 6 months on Contribution Based JSA I'm certain that it will have reduced to a whisker under 6K.

Throwing a few K into an ISA wouldnt hurt either - there's that 5% Nationwide deal too.

With luck, I'll get a new job and never have to sign on at all - the idea appalls me, but Its an option I want to be fully briefed on.