Are childrens savings considered your capital for entitlement to universal credit

SLS72

I am going to be moved over from Tax credits onto Universal Credit with the DWP transition this year....my children have got a fair bit in savings which they have had since they were born and added to through grandparents / christmas money etc and pocket money.  This is their money and they do raid it from time to time..eg the bought their own laptops last year.  What are the rules on childrens accounts?  Its different to tax credits as this was never looked at.  One has a child trust fund, which I am going to be moving into a junior ISA (only just had this transferred to me - messy divorce).  The bank accounts one will be moved into my sons own name now he is old enough and the other will move to my daughter when she turns 11 this year.  If the accounts are in their name I then don't have access to them and they have to go and get the money in branch. Their money should not be taken into account for my benefit? I need to sort it all out before the move across so its all straight....the rules for UC are so different to TC.   Could do with a comparison table of what the differences are so us tax credit people can compare and see what we need to do in advance of the transition. 

kaMelo

The reason it could happen is to stop parents dumping their money in child accounts so as to increase or maintain their benefit qualifucation

As long as the accounts have always been in their name with you only a trustee then, based upon what you've said, I would not expect you to have any problems.

Trust funds and JISA are never included.

HillStreetBlues

In whose name in the money in at the moment?

calcotti

Broadly money owned by your children does not content your capital. However you giving your own capital to the children will likely remain yours.

Have a look at
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1145107/admh1.pdf

SLS72

I have the accounts as trustee but its their names on the statement.  The junior isas I am opening this month. It has  been a nightmare as I had to find the old trust fund records and find a bank who would switch it for me, plus it was in the exes name....long story!  I am tempted to just remove me as the trustee and leave the accounts in their own names and they would have to get their own money out in branch.  I just need to do it before the switch 

kaMelo

There is nothing wrong with you being a trustee on their accounts, depending on their age it's possibly a requirement. If the account has operated like a children's account, deposits such as birthday/Christmas money pocket money etc then no one will be interested.

Having now been notified of migration to UC, if there are significant sums of new money being deposited in children's accounts, especially with a corresponding similar withdrawal from your accounts, then they may become very interested.

Only you will know which one of those scenarios applies to you.

SLS72

kaMelo said:

There is nothing wrong with you being a trustee on their accounts, depending on their age it's possibly a requirement. If the account has operated like a children's account, deposits such as birthday/Christmas money pocket money etc then no one will be interested.

Having now been notified of migration to UC, if there are significant sums of new money being deposited in children's accounts, especially with a corresponding similar withdrawal from your accounts, then they may become very interested.

Only you will know which one of those scenarios applies to you.

great thanks....they just have pocket money, christmas and birthdays now as great grandparents died   :the statements show the money has been in there since they were very little xx

HillStreetBlues

SLS72 said:

great thanks....they just have pocket money, christmas and birthdays now as great grandparents died   :the statements show the money has been in there since they were very little xx

Looks like you can prove money was in their accounts before you would have known any capital would matter.
So I can't see there being an issue for you and your children.