Benefits and savings for children

kezza`4

Hello, I was hoping for some advice please. I'm a single mom of 3 young children. I have always worked, yet when I had my youngest, I didn't return to work but will do when she starts nursery. I receive IS, CTC, HB and CB. I, personally, do not have any savings, however my step-dad wants to give my children a gift of £3000 each from his annual bonus. He said to either open them an isa or put it in premium bonds. I wanted to know whether this money, is going to affect my benefits.

Thanks in advance.

LotsToDo

If my memory serves me right, if they have over £3,000 you have to declare it. I would just make is £2,999. Hope this helps.

nannytone_2

the most important thing is to make sure that you don't have access to it.
if you do, then it is classed as yours.
get your dad to open accounts with him as signatory

calleyw

LotsToDo wrote: »

If my memory serves me right, if they have over £3,000 you have to declare it. I would just make is £2,999. Hope this helps.

But the OP has 3 children. So she would over the limit even if he gave £2999 per child. As a total of £8997!!

With a Childrens ISA they can't touch the money until they are 18 so not sure how that would effect benefits?

Yours

Calley

LotsToDo

I believe it to be £3,000 per child. I also don't think it matters if you have access to it.

shoe*diva79

Get him to deposit it in your childrens ISA's then although they cannot touch until they are 18, it wont affect your benefits.

xylophone

He can contribute the money to each child's CTF/JISA (having regard to the annual allowance).

There can be no doubt that the money therein belongs to the child absolutely and cannot be accessed ( except in cases of terminal illness/death), until the child is 18.

https://www.gov.uk/child-trust-funds/overview

"There’s no tax to pay on the CTF income or any profit it makes. It won’t affect any benefits or tax credits you receive."

calleyw

LotsToDo wrote: »

I believe it to be £3,000 per child. I also don't think it matters if you have access to it.

Yes it does matter if you have access to it. As it's deemed as being part of the households money. Which in this case would mean it would effect benefits. As it's just shy of £9K

Strange that children get £3K each as a limit. When a household which could be 1 or 2 adults only get one allowance between them of £6K before it effects there benefits.

Yours

Calley

LotsToDo

That is for a child trust fund account, though. If it was put into an ordinary savings account for the child and the child wanted to buy a bike for instance, I think that would be fine. It is their money and they can access it.