We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Advice on reducing savings in retirement
Options

GrumpyOldMan_2
Posts: 36 Forumite
Is it possible to give grandchildren gifts of money to reduce my savings so that I would fall below the £6000 exemption that most state benefits set.
e.g. say I have £20K, could I gift 5 grandchildren (all under 18) £3000 (£15K total) leaving me with savings of £5000.
Would the DWP / Local Council try to say that I have disposed of my savings in order to qualify for Pension Credit/Housing Benefit,etc?
Any thoughts or experiences would be appreciated.
e.g. say I have £20K, could I gift 5 grandchildren (all under 18) £3000 (£15K total) leaving me with savings of £5000.
Would the DWP / Local Council try to say that I have disposed of my savings in order to qualify for Pension Credit/Housing Benefit,etc?
Any thoughts or experiences would be appreciated.
0
Comments
-
Unless there was a long time gap between the gifts and the benefits claim, then yes, it would be seen as intentional deprivation of capital.Gone ... or have I?0
-
Oh bother!
Thanks for your honest reply.
GrumpyOldMan0 -
Is it possible to give grandchildren gifts of money to reduce your saving. unless there was a long time gap between the gifts and the benefits claim, then yes, it would be seen as intentional deprivation of capital.0
-
steffiesmith12 wrote: »Is it possible to give grandchildren gifts of money to reduce your saving. unless there was a long time gap between the gifts and the benefits claim, then yes, it would be seen as intentional deprivation of capital.
I think theOP might have made a decision by now. :cool:0 -
The £6k doesn't apply to everything. There is no fixed upper capital limit for pension credit, but savings below £10k are ignored. In some cases, it is possible to get pension credit if you have a really low income but tens of thousands in the bank. Need to check individual circumstances.
If you're entitled to guarantee pension credit then you get full council tax benefit, and housing benefit if applicable and the £6k limit doesn't apply. If you are entitled to only savings pension credit, then the capital limits do apply.
And yes, what you're thinking of doing is deprivation of capital.0 -
steffiesmith12 wrote: »Is it possible to give grandchildren gifts of money to reduce your saving. unless there was a long time gap between the gifts and the benefits claim, then yes, it would be seen as intentional deprivation of capital.
why have you resurected a 3.5 year old thread and then added nothing to it?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 177K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards