Worried about implication

thankmyluckystars

My husband has just inherited part of his late fathers estate. It was split between the siblings as their mum & Dad were divorced. The siblings have set up a joint bank account in their own names and have requested that everyone deposits some of their inheritance into the account for their mother to use - she will have access to the bank cards (they say she can't have the money in her own bank account as it will affect her benefits). While we agree that she should have the money we are worried about the implications of this fraudulent bank account. I would appreciate any thoughts on this dilemma. 

xylophone

If the account is in the name of the siblings, the mother should not have access to the card for  the account.
If the siblings wish to assist their mother with monetary gifts, perhaps they could agree to  pay her utilities bills or similar by DD  from their account.

2e0arr

They want the mother to get the money and continue to get benefits good for her and them. Your husband runs the risk of being part of benefit fraud

Tell your hubby to spend his inheritance on you and him

we pay enough for people on benefits

xylophone

The  siblings' mother was divorced from their father.   He chose to leave part of his estate to his children (or perhaps they inherited under intestacy).
Their mother's means are modest enough for her to be entitled to means tested benefits.
They want to help her out financially - no reason why they should not do so.
However, this does not mean that she should be given access to cards on an account which is not in  her name.

2e0arr

xylophone said:

The  siblings' mother was divorced from their father.   He chose to leave part of his estate to his children (or perhaps they inherited under intestacy).
Their mother's means are modest enough for her to be entitled to means tested benefits.
They want to help her out financially - no reason why they should not do so.
However, this does not mean that she should be given access to cards on an account which is not in  her name.

Its benefit fraud

xylophone

Its benefit fraud

Can you explain this please?

The mother has no right to money from the ex husband's estate.  However, their children have inherited from him as their father.

She has no right to expect any help from her children.

The mother's means are modest enough to make her eligible for means tested benefits.

The children wish to give her money to improve her circumstances. How much they give or whether they give is entirely at their discretion.

They do not wish to gift her a lump sum because this could increase her savings and render her ineligible for benefits.

They would therefore opt to make gifts which did not have this effect, perhaps pay for her holiday or her shopping or her clothes or her gas bill.

How can that possibly be fraud?

But the terms and conditions of the siblings' joint bank account would make it quite clear that they should not make their debit cards available to any third party, including  their mother.

xylophone

And see https://www.entitledto.co.uk/help/benefits-charity

2e0arr

any money the kids give her as a gift should be declared especially if they need to open a bank account to facilitate the gifts."quote from the poster ,,, While we agree that she should have the money we are worried about the implications of this fraudulent bank account." the gifts are substantial enough to affect her means tested benefits. so avoiding affecting her means tested benefit is fraud.
 

xylophone

For the siblings to open a bank account to hold  their own money  (and the bequests are their money both legally and beneficially), is not illegal.
It is not benefit fraud for them to make gifts to their mother - see link above.
They should not make their debit cards available to their mother or any other third party.
If they made lump sum gifts to their mother which brought her savings above the relevant amount for means tested benefits, the mother would have to declare the excess capital.

2e0arr

its benefit fraud if mum doesnt declare the gifts as income.

onwards&upwards

xylophone said:

If the account is in the name of the siblings, the mother should not have access to the card for  the account.
If the siblings wish to assist their mother with monetary gifts, perhaps they could agree to  pay her utilities bills or similar by DD  from their account.

Yep, this is the way to go.

There are lots of ways they can help and keep it above board.  They can order an online food shop to be delivered to her regularly, they can set up DDs for her bills, they can take her clothes shopping, pay for a cleaner or ironing service, or gardener, put petrol in her car or put money on an account with a local taxi firm, they can take her on holiday at their expense, they can pay for repairs to her home. 

What they can’t do is give her cold hard cash and try to hide the fact, or give her free rein of a bank account they are presenting as nothing to do with her.