Universal Credit and Named On a Bank Account..?

Bexm

Hi

My husband and I are in the process of applying for Universal Credit (first approach at the benefit system ever so apprehensive)- both work, but really struggling to make ends meet.. and the entitled to whatsit reckons we may get something so figured worth a go!

Something has got me worried tho, a few months ago my mum decided she wanted to open a joint saving account with me... something that she would put money in but is still hers but is in my name too "incase something happens" [to her and my dad] as she put it, so I can easily get at some money to sort things out if I need to.
At the time I didn't see a problem with that and it sounded quite logical. She randomly puts money in there and at the moment there is about £1000 in there but there was quite a lot more until she withdrew it for something.

How is the benefits people going to see this though? Am I at risk of having to pay something back, if they actually give us anything, if they think this is my money?
Should I be asking her to take me off this account?

Thanks for any advice
Bex

andrewmp

No expert. But I think you'll be ok. Your capital is under £1k

Bexm

andrewmp wrote: »

No expert. But I think you'll be ok. Your capital is under £1k

If you mean my mum's bank, at the moment it is.. but I have no clue how much she's likely to add to the bank at any given time..

calcotti

If the account is in two names I think you will be treated as having half the money in it. If your total capital goes over £6,000 this will reduce your UC entitlement.

Worrying about an account that might fluctuate seems an unnecessary complication to me. Rather than having a joint account it would be simpler if your mother just gifted you a sum of money which she might suggest you put aside - although obviously once it’s yours she has no control over it. As long as the total capital for you and your husband remains below £16,000 you can still claim UC, anything over £6,000 will reduce your entitlement.

Bexm

calcotti wrote: »

If the account is in two names I think you will be treated as having half the money in it. If your total capital goes over £6,000 this will reduce your UC entitlement.

Worrying about an account that might fluctuate seems an unnecessary complication to me. Rather than having a joint account it would be simpler if your mother just gifted you a sum of money which she might suggest you put aside - although obviously once it’s yours she has no control over it. As long as the total capital for you and your husband remains below £16,000 you can still claim UC, anything over £6,000 will reduce your entitlement.

This is what I was thinking.. but husband has said I'm just being silly as obvious it not mine..! But it's in my name!!
I'll give it til next month to see if they actually decide to give us anything then ask her to close the account if they do! It's too scarier prospect of being told to pay anything back,after we've spent it, if it gets too high and they see ( I don't know how it works)

tacpot12

Section H1135 in the Advice for decision making ( This document: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/778104/admh1.pdf) suggests that in your situation, the DWP decision maker should not regard any of the money in this account as yours, if you don't deposit any money in it.

calcotti

tacpot12 wrote: »

Section H1135 in the Advice for decision making ( This document: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/778104/admh1.pdf) suggests that in your situation, the DWP decision maker should not regard any of the money in this account as yours, if you don't deposit any money in it.

I wasn’t clear about how beneficial interest would be treated in this case. OP’s post indicates that mother’s intention is that OP can access the account and spend money in it if needed.

Paragraphs H1070 to H1076 set out how legal owners and beneficial owners may differ. However H1090 says

If people are the legal owners of capital, assume that they are the beneficial owners unless
1. there is written evidence such as a Deed of Trust which says who has a beneficial interest in the capital or
2. the legal owners say they have
2.1 no beneficial interest or
2.2 only a share in the beneficial interest.
Note: It is the responsibility of the legal owners of capital to establish that they are not the beneficial owners.

Even if mother is the only person who has paid in what inference will the DM draw from the fact that other has chosen to open the account in joint names?

Difficulty is that OP would not know how the account would be treated until a DM made a decision. Having to justify things is an additional complication for OP.

TELLIT01

You do need to declare the account on your UC claim, but you are obviously aware of that anyway. As other have said, it's not likely to be a problem unless it takes total savings over £6k where is does start to affect benefit.
When I was working on ESA I did have one claim where something very similar had been done. In that instance the Decision Maker accepted a letter from the father stating that the money in the daughter's account was his and was to pay funeral costs.

tboo

Bexm wrote: »

Hi

My husband and I are in the process of applying for Universal Credit (first approach at the benefit system ever so apprehensive)- both work, but really struggling to make ends meet.. and the entitled to whatsit reckons we may get something so figured worth a go!

Something has got me worried tho, a few months ago my mum decided she wanted to open a joint saving account with me... something that she would put money in but is still hers but is in my name too "incase something happens" [to her and my dad] as she put it, so I can easily get at some money to sort things out if I need to.
At the time I didn't see a problem with that and it sounded quite logical. She randomly puts money in there and at the moment there is about £1000 in there but there was quite a lot more until she withdrew it for something.

How is the benefits people going to see this though? Am I at risk of having to pay something back, if they actually give us anything, if they think this is my money?
Should I be asking her to take me off this account?

Thanks for any advice
Bex

So what was the amount before your mum withdrew some and when approx

Bexm wrote: »

This is what I was thinking.. but husband has said I'm just being silly as obvious it not mine..! But it's in my name!!
I'll give it til next month to see if they actually decide to give us anything then ask her to close the account if they do! It's too scarier prospect of being told to pay anything back,after we've spent it, if it gets too high and they see ( I don't know how it works)

How did your mum open an account in just in your name and how can she then close it if it's just in your name?

Is it a joint account or not?

badmemory

Far better if she closes the joint account & gets herself a power of attorney with you as the attorney. It could save you far more than the £82 it would cost her.

bspm1

tboo wrote: »

So what was the amount before your mum withdrew some and when approx



How did your mum open an account in just in your name and how can she then close it if it's just in your name?

Is it a joint account or not?

OP clearly states in opening post that it is a joint account between her and her mother. But I was wondering how much was in there before, too.