Child savings / inheritance

Mal1234

Hi,
I am a recently divorced mum of 3 and am currently not employed as I am caring for my middle child who has severe disibilities.

My in-laws recently mentioned that they would like to open ISAs for the children and asked if this would affect my benefits. I have no idea if it would.

The ISAs would be for the children and they would not be able to access them until they turn 18.

Also, what would happen if my children recieved any inheritance in their grandparents will? I have no idea if they will or won't but it is a possibility as they are the only 3 grandchildren. Would this affect my benefits?

Any advice would be helpful

xylophone

You would open the JISAs and the grandparents could contribute up to the annual limit for each child if desired.

See https://www.gov.uk/junior-individual-savings-accounts

However regarding your middle child ( both with regard to JISA and inheritance) see

https://www.renaissancelegal.co.uk/when-saving-for-your-child-may-be-a-problem/

Your in laws will no doubt be taking advice from a solicitor concerning their Wills.

If your children inherit ( on an indefeasible basis) see

https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem1563

the money would be held in bare trust - if you were the Trustee and on means tested benefits, although the money would undoubtedly belong to the children, you could find that you would be required to prove to DWP that you were not accessing the money during the children's minority.

Mal1234

Thank you for the information and weblinks xylophone.

I am so very grateful for your help. I had no idea it was all so complex. I struggle to understand all these things but at least I can pass all this information to my ex father-in-law. Particularly the info relevant to my middle child. I would never have foreseen that added complication.