safest way to save on benefits without affecting claims

alisonnpaul

in short i'm a saver 
my wife on full pip (full time) and joint uv claim 
myself on carers allowance full housing minus 1 bedroom tax and full council tax
both over 50 we are past the splashing the cash and partying
We struggle to spend what we get coming in financially but find we are approaching the 6k mark quite quickly where benefits will be affected 
we need the benefits to cover rent and daily living but also have a climbing surplus of funds i've been told a trust fund could help is this allowed or will it still affect benefits 

NedS

The easiest method is to contribute excess income into a pension, as funds held in a pension are disregarded until you reach state pension age.

If you are not working, you can contribute £3600 gross each per year into a pension (£2880 before tax relief) AND receive tax relief on those contributions (£720/year free money).

Depending upon your age, you can access those funds from age 55 or 57, so consider it like short term savings.

All other forms of savings will be taken into consideration for means tested benefits.

born_again

Not sure a trust would cover what you are looking for.

alisonnpaul

NedS said:

The easiest method is to contribute excess income into a pension, as funds held in a pension are disregarded until you reach state pension age.

If you are not working, you can contribute £3600 gross each per year into a pension (£2880 before tax relief) AND receive tax relief on those contributions (£720/year free money).

Depending upon your age, you can access those funds from age 55 or 57, so consider it like short term savings.

All other forms of savings will be taken into consideration for means tested benefits.

so myself 50 and wife coming up to 55 should i be speaking with a pensions forum and or expert in what i hope to be at least another 6 yrs we will inherit from both parental sides 1 a 3 way slip on a 120k house and another around 25k in cash 

KxMx

The deduction is £4.35 for every £250 or part thereof over £6k.
No entitlement to UC with £16k+ capital. 

Muttleythefrog

I don't think there is any option... means tested benefits are obviously looking at capital which includes what you may refer to as savings. As far as I know trust funds excluded from capital calculations would be specific like from personal injury/medical negligence awards. If there was any obvious loophole I'm sure I would have seen it referenced over the years. The pensions contribution option above is valid but obviously limited. If you have children or other people in your life that could benefit from your surplus funds that may present options but obviously be aware of deprivation of capital rules.

In mentality terms "in short i'm a saver " I would say applies to me too. But in short - means tested benefits and savers don't mix well...lol. You need to choose one or the other ultimately if indeed you don't spend income.

TimeLord1

Why don't you replace old for new and decorate etc. A trust fund will be classed as deprivation of capital for any means tested benefits. 

itsthelittlethings

Try and spend the money on an environmentally friendly (or your preferred ethical way) way if you can’t stand the guilt of buying a new fridge freezer.

Spoonie_Turtle

itsthelittlethings said:

Try and spend the money on an environmentally friendly (or your preferred ethical way) way if you can’t stand the guilt of buying a new fridge freezer.

And/or donate (some) excess income to charity, if you really can't make use of it and your savings keep accumulating.

You could use it for a nice holiday somewhere that meets your/your wife's needs - if you need wheelchair accessible in the UK that can easily be 2-3k just for accommodation.

alisonnpaul

thanks everyone so a trust fund is a no go option spending wise we have bought private funeral plans to bring down the bank balance a little and replaced a lot internally and externally fitted granite work tops media wall fitted bedroom lvt stick down throughout & supporting our local animal sanctuary we are running out of things to do a silver and gold investment has seen silver bringing in quite a lot of late could we use ISA's as they are tax free or would universal credit be informed of this it has me worried that we would need to withdraw and start stuffing the mattress 
income is around 456 a week outgoings around the 250 mark with free rent and council tax thus 250 surplus a week 

Muttleythefrog

alisonnpaul said:

thanks everyone so a trust fund is a no go option spending wise we have bought private funeral plans to bring down the bank balance a little and replaced a lot internally and externally fitted granite work tops media wall fitted bedroom lvt stick down throughout & supporting our local animal sanctuary we are running out of things to do a silver and gold investment has seen silver bringing in quite a lot of late could we use ISA's as they are tax free or would universal credit be informed of this it has me worried that we would need to withdraw and start stuffing the mattress 
income is around 456 a week outgoings around the 250 mark with free rent and council tax thus 250 surplus a week 

Gold, Silver Investments, ISAs are all capital... and you are required to declare such ... same with cash stuffed anywhere which is why during reviews they're keen to query cash movements they see in statements! 

You are worried that you need to hide money... I'd be worried you are thinking of committing fraud! Many of the threads we get on here regarding investigations by DWP into such or of overpayments quickly disappear when the Op doesn't get answers they want to hear... don't join them!

If you cannot spend income and above advice given doesn't give sufficient ideas then consider stopping claiming something. You are trying to solve a problem entirely created of your own choosing (and over the years on here quite a few have found themselves in similar boat) and if you take a step  back you might see this. I appreciate it is hard a consideration to reject money you're entitled to... but if you cannot spend your income you are going to see benefits reduce due to capital held or you will have to commit fraud. This road ultimately forces a choice of direction... spend, declare or crime. Animal sanctuary a good choice I'd say by the way... options for sponsoring animals locally in such?