Sons inheritance causing me benefit problems

phillw

gary9999 wrote: »

How can i solve this problem?

You probably should get legal advice from a solictor that deals with setting up trust funds for children. It may cost you a grand.

xylophone

Your MIL is going to make a will leaving your child around £26,600?

Or she is going to write you a letter confirming that she is sending such a gift to your son?

Are your parents still living? Or siblings? You would be happy for them to be your son's Trustees?

You might ask them to open an account in bare trust for your son - the money could initially be paid into this account.

This would be the source of the subscriptions as described below.

Your son has a CTF? It would be possible for the maximum subscription to be made to this and then for the account to be transferred into JISA - the maximum subscription for the current tax year could then be made into that.

This would potentially use over £8000 of the gift. Over the next five or so tax years, the balance of the money in the Bare Trust Account could be transferred into the JISA.

Your child would be around 12/13 by then and the cash in the JISA would be available to him at the age of 18.

Mojisola

gary9999 wrote: »

I am a single father with a seven year old son.

My mother in law is seriously ill and probably won't last more than a few months.

She has savings of around £80,000 which she wants to split equally between my son and her two other grandchildren.

the bank staff told me if i put this money into his account the government will stop my ESA and housing benefit

You're taking as gospel that the bank staff are right about the effect on benefits - have you asked the DWP whether they are right?

I understand that if you inherited the money and put it into your child's name, it would affect mean tested benefits but this is your child's inheritance and I don't think it should affect your claim.

teddysmum

Mojisola wrote: »

You're taking as gospel that the bank staff are right about the effect on benefits - have you asked the DWP whether they are right?

I understand that if you inherited the money and put it into your child's name, it would affect mean tested benefits but this is your child's inheritance and I don't think it should affect your claim.

There is the situation, though , where parents are limited to where and how much in savings they put away for a child, as this prevents unscrupulous people investing their own money in a child's name, then withdrawing the interest for themselves.


If too much money is put into an account that parents can access, the interest is taxed as theirs.

Housing_Benefit_Officer

gary9999 wrote: »

I am a single father with a seven year old son. My wife died last year. She was Bulgarian. I am English. I am disabled and live in a council flat. My only income is ESA/DLA and child benefit. My mother in law is seriously ill and probably won't last more than a few months. She has savings of around £80,000 which she wants to split equally between my son and her two other grandchildren. I opened a savings account for him and the bank staff told me if i put this money into his account the government will stop my ESA and housing benefit because i will be expected to live on this money even though it is not mine. I can't believe they expect me to steal from my son. The money is for his future and has nothing to do with me. I am just in control of the account until he is old enough to manage it himself. How can i solve this problem?

Bank staff are not benefit advisers so shouldn't be giving out potentially misleading information.

Mojisola

teddysmum wrote: »

There is the situation, though , where parents are limited to where and how much in savings they put away for a child, as this prevents unscrupulous people investing their own money in a child's name, then withdrawing the interest for themselves.

If too much money is put into an account that parents can access, the interest is taxed as theirs.

But that is only if the money comes the parents to start with.

Gambler101

gary9999 wrote: »

She is in Bulgaria. Without going into detail about Bulgarian politics the country is basically a lawless slum controlled by the !!!!!. Money left there in banks/trusts/bonds is not safe.

Reason 159995 why we are brexiting lol