Benefits after a death

MissG80

My friends husband died and she received some money. She wants to put 30k in a JISA for their child, however that would leave her needing to claim benefits. Is she able to claim? 

poppy12345

Universal Credit has replaced all benefits and it's means tested. You can't just give away your money and then claim means tested benefits. This would be seen as deprivation of capital and she will still be classed as having the money. With savings of more than £16,000 she's excluded from claiming.

If she's worked at all in the previous 2 tax years and she's looking for work then she can claim New style JSA, it's not means tested.

She can look at claiming Bereavement Support Payment. Eligibility criteria is here. https://www.gov.uk/bereavement-support-payment/eligibility

MissG80

She did not work but has recently got a a job. She also receives his pension. Current total income is £1250. Also her son under 5 gets £250 pension.  She already had the widows benefit. He died two years ago. 

I was aware of deprivation of assets. She is hell bent on saving the money, as that was also the partners wishes. That is not in writing as he died quite quickly. 

I guess I was hoping for reassurance that the system would block her not declaring the money. Not for any personal reason, I just think if you do things that you are not allowed then bad things happen eventually.  I can't get through and she has pretty much threatened our friendship. 😞

MissG80

Did not work in last 2 years I should say. Previously worked all her life.

poppy12345

Usually pensions reduce your UC £1 for £1. I don't know if it's the same for your friend but i'm assuming it will be. Happy to be corrected, if wrong.

The will be nothing that will block her from claiming UC if she doesn't declare her savings. However, not declaring them can be benefit fraud and they will eventually find out anyway.

theoretica

MissG80 said:

My friends husband died and she received some money. She wants to put 30k in a JISA for their child, however that would leave her needing to claim benefits. Is she able to claim? 

My understanding is that only 9k a year can be put into a JISA, which would also be an issue for what she hopes to do.

poppy12345

theoretica said:

MissG80 said:

My friends husband died and she received some money. She wants to put 30k in a JISA for their child, however that would leave her needing to claim benefits. Is she able to claim? 

My understanding is that only 9k a year can be put into a JISA, which would also be an issue for what she hopes to do.

Thanks. Confirmed here. https://www.gov.uk/junior-individual-savings-accounts/add-money-to-an-account