Savings 31 May 2020 at 8:56AM in Benefits & tax credits 10 replies 481 views

alisonblackburn

Hi,
I currently receive ESA and PIP for a disability.
I am downsizing my home to release some capital, I think it should be around thirty thousand that I am hoping to bank once the sale is completed. This will be left as an investment pot for retirement though its a while off as I am 53
Will I have to inform the benefit agencies and could this affect the amount of benefits that I receive, If so could I either put the cash in my adult daughters account so that I don't have to tell them.Alternatively should I buy premium bonds or something like that so that it is invested.
Thank you for any advice offered.
Alison

whizzywoo

alisonblackburn said:

Hi,
I currently receive ESA and PIP for a disability.
I am downsizing my home to release some capital, I think it should be around thirty thousand that I am hoping to bank once the sale is completed. This will be left as an investment pot for retirement though its a while off as I am 53
Will I have to inform the benefit agencies and could this affect the amount of benefits that I receive, If so could I either put the cash in my adult daughters account so that I don't have to tell them.Alternatively should I buy premium bonds or something like that so that it is invested.
Thank you for any advice offered.
Alison

Alison no one on here is going to tell you it's ok to put this money into your daughter's account or to buy premium bonds in order to avoid telling the benefits office about it.  That would be fraud and you could get yourself into serious trouble.  Don't you realise that the Land Registry Office and the banks have to inform the DWP about things like this?

PIP is not means tested and so will not be affected by any capital you have.

ESA may be depending on whether you are claiming Contributions Based ESA or income based ESA or possibly a mixture of both.  Contributions based ESA will not be affected by capital.

TELLIT01

If you are receiving any form of income related benefit you must inform DWP.  Failing to do so is benefit fraud, with all the attendant legal implications.  You cannot give the money away as that will be viewed as 'Deprivation of Capital' and, for benefit purposes, you will be treated as still having that money.  Putting it into Premium Bonds won't make any difference as you have to declare ALL savings and other capital.

GHolmesAdmin

If you put money into your daughters account it will no longer be yours it will be hers, in addition to the depravation of capital thing...

Spoonie_Turtle

GHolmesAdmin said:

If you put money into your daughters account it will no longer be yours it will be hers, in addition to the depravation of capital thing...

Except if the eyes of the DWP it is still the original owner's, they've just moved it into someone else's account. So they are still treated as having that money.

tomtom256

GHolmesAdmin said:

If you put money into your daughters account it will no longer be yours it will be hers, in addition to the depravation of capital thing...

It's called beneficial interest, I move all my money to my daughter, but the beneficial interest is still mine and not my daughters. If the money was no longer hers, her daughter could spend it as she saw fit, however the OP wants to move, so she doesn't have to declare it, which is a big difference to just "giving it away".

The OP wants to hide it from the relevant authorities to enable her to claim means tested benefits, whilst still having access to the funds as and when, at a later date.

John_

alisonblackburn said:

Hi,
I currently receive ESA and PIP for a disability.
I am downsizing my home to release some capital, I think it should be around thirty thousand that I am hoping to bank once the sale is completed. This will be left as an investment pot for retirement though its a while off as I am 53
Will I have to inform the benefit agencies and could this affect the amount of benefits that I receive, If so could I either put the cash in my adult daughters account so that I don't have to tell them.Alternatively should I buy premium bonds or something like that so that it is invested.
Thank you for any advice offered.
Alison

Putting the money into your daughter’s account to hide the fact that it’s yours is fraud, which could lead to a criminal conviction.
Whatever form you put it in, as it’s yours then it may affect some benefits.
Is there any urgency, or would you maybe not be better waiting to downsize?

frayedknot

Neither the land registry or banks routinely inform DWP of  transactions unless the DWP asks them for specific details during  an investigation.

I was looking at all the costs involved in buying (and selling) a house the other day. I was shocked about all the extra 'charges' that have crept onto the bill since I last bought a house, and that was only a few years ago. To be honest I'd stay put, it's cheapest.

TELLIT01

If the daughter either is claiming income related benefits, or needs to in the future, that money in their account would prevent them doing so.  In that scenario, not only would the OP be guilty of benefit fraud, but the daughter would be denied benefits she otherwise would have genuine entitlement to.

NedS

frayedknot said:

Neither the land registry or banks routinely inform DWP of  transactions unless the DWP asks them for specific details during  an investigation.

DWP/HMRC have automated systems that will flag up for investigation large transactions relating to people claiming means tested benefits.

McNinian

Yes, it's all automated.
I don't believe the scenario outlined in the opening post. Lots of a similar nature appear here under different user names but with an identical writing style.