How does a child's financial inheritance affect the surviving parents universal credit

westy55

A family member has died and he leaves 3 pensions. His children have been named as the beneficiaries in his will and by the pension trustees. He was separated from his wife for 2 and a half years and she was not financially dependant upon him. She works but also receives universal credit. The trustees of the pension have stated they will pay her on their behalf and she plans to invest in something such as premium bonds in the childrens names. The amount is aprox £20,00 each child. There are 2 children.
My questions are:
Will this affect her universal credit?
Can she instruct the pension trustees to pay the pension to the deceased siblings, who are named trustees on his will to the childrens funds if their mother dies? 

Exodi

How old are the children?

I'm not totally sure, but assuming the children are under 18, shouldn't the trustees be paying directly into an account in the childrens names, rather than directly to the mother as is suggested?

I'd expect that would be much less likely to affect her universal credit also.

Also, sorry if I'm being pedantic, but premium bonds are not investments and there's the possibility they will not keep pace with inflation.

Keep_pedalling

Assuming the children are minors then the money needs to go into a bare trust for each child not in her name so should not impact any of her benefits. Premium bonds can’t be held in trust. How old are the children?

westy55

The children are under 16. The pension company is asking for mums current account and ID to send her the money. Can she request it be paid directly into there named accounts. She will need to take financial advise regarding the best investment