Universal credit & childs savings

PinkBow22

Hi, I receive UC my 3 children have just inherited 5k each which at the moment is just in their regular savings account and it’s just dawned on me about savings limits whilst I’m on UC, will this affect it? 

All 3 of their savings accounts has their names on but. mine is also on them. I don’t intend to touch there savings at all. 

I have read unless it’s in a Jisa their only aloud up to £3k each I think. 

So I am going to look at getting them a Jisa but for the mean time are we at risk having it in their regular savers? 

marcia_

PinkBow22 said:

Hi, I receive UC my 3 children have just inherited 5k each which at the moment is just in their regular savings account and it’s just dawned on me about savings limits whilst I’m on UC, will this affect it? 

All 3 of their savings accounts has their names on but. mine is also on them. I don’t intend to touch there savings at all. 

I have read unless it’s in a Jisa their only aloud up to £3k each I think. 

So I am going to look at getting them a Jisa but for the mean time are we at risk having it in their regular savers? 

 Children savings do not affect your claim so long as the money is in their own bank account not yours. 

poppy12345

There could potentially be issues as you also have access to the bank accounts with your name being on them too.

TELLIT01

marcia_ said:

PinkBow22 said:

Hi, I receive UC my 3 children have just inherited 5k each which at the moment is just in their regular savings account and it’s just dawned on me about savings limits whilst I’m on UC, will this affect it? 

All 3 of their savings accounts has their names on but. mine is also on them. I don’t intend to touch there savings at all. 

I have read unless it’s in a Jisa their only aloud up to £3k each I think. 

So I am going to look at getting them a Jisa but for the mean time are we at risk having it in their regular savers? 

 Children savings do not affect your claim so long as the money is in their own bank account not yours. 

It certainly didn't used to be that simple.  If the parent had access to the account there was the possibility of the money being included in their savings calculations.  I've been away from DWP for some years so rules may have changed under UC.

HillStreetBlues

What was the method of payment of the inherence, and have you a copy of the will it was from?

Newcad

PinkBow22 said:

All 3 of their savings accounts has their names on but. mine is also on them. I don’t intend to touch there savings at all.

The fact that the parent has access to the account/money is an issue.

It has to be considered - otherwise what would prevent people fraudulently trying to 'hide' their savings in that way in order to claim benefits?

Yolo40oops

This has got me thinking too. 

I have worked hard to get a small amount of savings for my children which are in premium bonds, just £1000 each. Both in their names but I  am the ‘holder’ (not sure the correct term). They do not know about this money but will let them know when it comes to them buying their first car as it will help massively but I want them to save up themselves first etc. Is this ok as I will be moving to uc and understood this didn’t need to be reported as it is not my money.
I would be happy to keep bank records for next few years to prove the money sits in their account. I am old school and think if they know about it, they will not necessarily work hard /appreciate saving up etc. I want to help but not handed on a plate hence when they turn 16, it will just sit there. 

HillStreetBlues

Yolo40oops said:

This has got me thinking too. 

I have worked hard to get a small amount of savings for my children which are in premium bonds, just £1000 each. Both in their names but I  am the ‘holder’ (not sure the correct term). They do not know about this money but will let them know when it comes to them buying their first car as it will help massively but I want them to save up themselves first etc. Is this ok as I will be moving to uc and understood this didn’t need to be reported as it is not my money.
I would be happy to keep bank records for next few years to prove the money sits in their account. I am old school and think if they know about it, they will not necessarily work hard /appreciate saving up etc. I want to help but not handed on a plate hence when they turn 16, it will just sit there. 

There are two possible issues, will it be classed as your children's money? and if it is then you giving the money away.
What capital do you currently have?  & when did you give this money to your children?

Yolo40oops

I saved the money up good few years ago so it’s been in their account all that time. Might even be good 5 plus years or so, I would have to check as I just forget about it. I have £4100 savings myself 

HillStreetBlues

As you gave them the money that long ago, that would be totally fine. With it being in their names (and you as holder) and that amount of time that's passed then I doubt they would be able to class it as your money.
Even if you included your children's money you are just over the threshold where a deduction is made so if the worse happened the deduction would currently be £4.35 per month.
If you had any Cost of Living payments these are ignored so discounted as capital as long they remain unspent, so that would being you under the limit.

jojaca

Another question child related, I'm in the savings bracket of £6k-£16K and eldest son has just asked can I lend him £400 towards his car insurance. I want to lend him the money, but I feel like big brother is watching over me now on Universal Credit and I could get sanctioned for that type of money.