junior isa and uc

chickenlicken99

Densol I was responding to the previous poster n not lindyloo

dirtydingismagee

Thanks for all the info - densol, I'd really appreciate any info re transitional arrangements.

So Junior ISAs and similar won't count, but regular savings would? Not that there's too much in those accounts anyway lol

And just checking (again) re capital - the house you live in isn't counted as capital, even if it's owned outright with no mortgage? Thanks

chickenlicken99

I believe the house u live in doesn't count as capital.


I think there maybe some transitional protection for those with savings over 16k not 100% on this.


I'm just confused as to whether I can keep putting their money into theirjunior isas or not n whether I can transfer money from other kids regular saver into their junior isas or not. Very confused

xylophone

https://forums.moneysavingexpert.com/discussion/50657 14.


It was the children of the poorest parents (very possibly on means tested benefits) who were given the highest value vouchers under the old CTF scheme.

The idea was to encourage parents to save for their children?

It would be strange indeed if those parents could not contribute what they could afford to the CTF/JISA.

That said, if a parent came into a modest inheritance of enough to make him ineligible for means tested benefits, and he gave it all to his child (or to anybody else), the DWP might well consider that "deprivation of assets to maintain or increase entitlement" had occurred.



The money in a JISA belongs to the child absolutely and if money is held in bare trust in an account in the name of the child, it belongs to the child absolutely - the difference is that the CTF/JISA cannot be accessed until the age of 18.

Money held in bare trust can be accessed by the Trustees before the age of 18 but the money having been given to the child, should only be used for his benefit.

The money in such accounts already belongs to the child - there should be no problem about paying the money into CTF/JISA.

It seems to me that CTF/JISA should be the savings vehicle of choice for parents on benefits as there is no question of their being able to access the funds at all- only the child can access the funds (except in tragic circumstances) and that not until age 18.

chickenlicken99

This I just what I was thinking that the whole idea of the ctf n then jisa was to save for your kids.


we have lots of family who give my kids cash for irthdays/Xmas n I put it in their savings. My eldest is ten so over the years it adds up..




at the moment I am not doing nor do I intend to do anything wrong I just want to know what will happen when uc comes in and whether I can keep adding money to it

xylophone

http://about.universalcredit.service.gov.uk/kms/Pages/Savings_and_other_capital_overview.htm

There seems to be nothing here about children's savings.

Mersey_2

paragon909 wrote: »

Income based benefits will be effected by your 10k savings.

Untrue. They are not the OP's savings.


Pmlindyloo is correct.


Plus, remember it's effectively net assets being the threshold (eg if you have a £2k overdraft and £6k of savings you're deemed to have £4k of savings, as overdrafts are repayable on demand and there's case law on this protecting you).

Alice_Holt

Mersey wrote: »

Plus, remember it's effectively net assets being the threshold (eg if you have a £2k overdraft and £6k of savings you're deemed to have £4k of savings, as overdrafts are repayable on demand and there's case law on this protecting you).

I'd be grateful if you could give me a link to this caselaw.

Thanks.

P.S My understanding based on (R(SB) 2/83 – a decision of a Tribunal of Commissioners was that an overdraft on a different account cannot be set against credit balances when calculating capital for the purposes of a means tested benefit. Has this decision been superceeded?

Mersey_2

Yes.


2011 UKUT 63 AAC.


The Upper Tribunal ruled that the First Tier Tribunal had overlooked the fact that he had an overdraft on a separate account, ie he was both a debtor and a saver. [unlike in R(SB)2/83].


[However some local authorities still seem unaware of the above and the CAB has to cite it quite often]


Mortgages, of course, don't count as linked debt, however.

chickenlicken99

I have read up on transitional protection but it seems a little vague