Universal Credit and Child Savings

Unicorn79

My child has just been gifted £3k by a family member.  This means it will take me over £6k savings in total which would in turn affect Universal Credit, as anything over £6K means I will receive a deduction in benefit.

I have a bank account for my child (Future Saver), but I have ownership of the funds.  Can I keep the £3k in here or would I need to transfer it to a Junior ISA?  I would rather not have a Junior ISA in case the funds would need to be accessed by my child before they reach 18, so am wondering if there are any other options? e.g. Child Premium Bonds??

I appreciate any advise! 

calcotti

It depends on the details of the savings account.
Money in savings in your child's name is ignored and not counted as yours.
If the money is the child's and you only acting as a trustee on the account the beneficial owner is your child.

Unicorn79

These are the terms of the account my child has:

Conditions for holding your account

1. This account can be held in the sole name of one adult account holder (aged 18 or over). The adult must have parental responsibility for the child they’re saving for. Both the adult and the child must be living at the same address (for some or all of the time) at the time of account opening. The child must be aged between 0 and 15 years when the account is opened, but the account can be held until the child is 18 years and six months.
2. You cannot pay more than £5,000 as your initial deposit into this account.
3. The money in the account is held for the benefit of the child and the account holder is responsible for this in the way they manage the account.
4. An adult with parental responsibility can only hold one Future Saver account per child.

Unicorn79

Future Saver

The account is designed for those who will rarely need to make withdrawals.
The adult will be acting on behalf of the child (as a ‘bare trustee’). Although the account is in the name of the adult, the money in the account is held for and belongs to the child. As a ‘bare trustee’, the adult will have duties and obligations to the child (for example, the adult will need to act in the best interests of the child).