Gifting money from benefits?

snoop2008

Good afternoon peeps!


Not sure if this is the right place , but apologies in advance.


I was reading about gifting money to children and family from a few posts here.. I am claiming disability benefits and I have savings for just under £4000. I understand that people who claim benefits can have a certain amount of savings, I think its the lower threshold of £6,000 but not sure.


Ideally I would like to gift my daughter the whole amount of my savings, but not sure if I come under the same rules of gifting.


As I am claiming benefits from the government, and my benefits are not earned, would I be able to gift £250 to my daughter and £50 to my niece. I am not sure if this comes under inheritance gifts. I do not own a property and live in council property. Hope I am making sense.


I am wondering what do other do who are on benefits and saving and what are the rules for for gifting to children and family.




Thanks in advance

Glen_Clark

DWP Benefits are hugely complex, and you would probably be better off on the benefits section of this website.
Basically the DWP see gifts as 'deprivation of capital' and will assess your benefits as if you still have the money you have given away. But if you are not receiving means tested benefits that doesn't matter.

TheShape

snoop2008 wrote: »

I am claiming disability benefits and I have savings for just under £4000.

Ideally I would like to gift my daughter the whole amount of my savings, but not sure if I come under the same rules of gifting.

Ignoring the question of how the DWP would view the gift or potential inheritance tax issues, this does not seem to be a particularly sensible thing to do. Your post implies that you do not have an income other than disability benefits (correct me if wrong) and you are proposing to give away all your savings. What safety net will you have if your benefits are stopped or reduced or you face an emergency which requires you to have some money available to resolve?

Owain_Moneysaver

The savings threshold for reduction of means tested benefits is £6,000 (approx, I haven't checked the latest figures). Between £6,000 and £16,000 benefits are reduced.

If you have less than £4,000 saved it's not affecting your benefit payments, so by giving it away you aren't depriving yourself of capital with the intention of claiming benefit.

Inheritance tax only needs to be considered if you have more than £350,000 in assets.

As TheShape says, giving away all your savings is not sensible. However £250 and £50 is irrelevant.

Keep_pedalling

TheShape wrote: »

Ignoring the question of how the DWP would view the gift or potential inheritance tax issues, this does not seem to be a particularly sensible thing to do. Your post implies that you do not have an income other than disability benefits (correct me if wrong) and you are proposing to give away all your savings. What safety net will you have if your benefits are stopped or reduced or you face an emergency which requires you to have some money available to resolve?

I am pretty sure the OP is a million miles away from having to worry about IHT, but I would strongly advise them not to give away all their savings. £4000 is not exactly a large amount of money and everyone should have a reasonable amount set aside for emergencies.

snoop2008

TheShape wrote: »

Your post implies that you do not have an income other than disability benefits (correct me if wrong) and you are proposing to give away all your savings. What safety net will you have if your benefits are stopped or reduced or you face an emergency which requires you to have some money available to resolve?

Good evening TheShape, lol.. you are absolutely right.. It is my life savings and asked the question regarding the inheritance aspect. That is why I am more than happy to give a gift of £250 and 50. I do not own a home, never have done and the only money I have in the world is the £4000... rest assured, it remains for an emergency which it is intended for. What I would like to do ideally is not what I would actually do, hence I came here to find out!


Keep pedalling:


I was trying to understand this inheritance thing. I am a millions miles away from iHT, and if it referred to me which it doesn't .


Owain: Yes I believe it is under £6000. I will keep it for a rainy day!


Thank you peeps for your honest replies.