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Original poster

Universal Credit question

42 replies

wineta · 23/09/2023 17:16

We currently receive Child tax Credits and have received the letter re swapping to Universal Credit.

However, I think we're going to lose it all due to the savings issue BUT the savings we have are not mine, they were an inheritance for DD. The problem is, she wasn't born at the time and so they were left to my 'issue' which I believe is what you call an unborn child. As such, I received the money which I put into a savings account in my name for her when she's 18.

I've tried to call UC but not managed to get through. I'm panicking now as we really need the Tax credits/UC money to survive.

im not sure if anyone on here can help or reassure me.

OP posts:
TheSnootiestFox · 23/09/2023 18:13

If it's in your name then it'll be classed as yours, and any attempt to change things now will be seen as deprivation of capital. Hindsight is a marvellous thing but it really needed to go into DD's name as soon as she had one! Willing to stand corrected though, and was there a will stating the inheritance was for your child? You may be able to get it to a decision maker if so but I wouldn't be getting any hopes up.....

Beezknees · 23/09/2023 18:23

If it's in your name I believe they will take it into consideration unfortunately.

Surely you knew this was coming?

AutumnCrow · 23/09/2023 18:26

Well, you've got nearly 3 months to get this sorted, if you just got your migration letter, so you need to get a lick on.

The inheritance money might have been best going into a trust for your 'issue' once she was born. Do you have a copy of the will and probate paperwork?

If it's a substantial amount, I'd see a solicitor tbh, and pay for that out of the inheritance money if you can't otherwise afford it (you should get a decent appointment with a specialist out of £100) to see where you legally stand with this.

Don't forget that at age 18 having access to significant money could affect her own entitlement to future student loans, or benefit payments. It all gets very swings & roundabouts. You could possibly 'mature' the trust at a later age.

Interested in this thread?

Then you might like threads about this subject:

Benefits
Throwncrumbs · 23/09/2023 18:26

How can you leave money to someone who isn’t even born? You are pulling a fast one and trying to get UC which you won’t be entitled to. Heard it all now !

senparents · 23/09/2023 18:27

Savings are a luxury - you need to use them up to live off then claim UC once they are gone

AutumnCrow · 23/09/2023 18:28

Throwncrumbs · 23/09/2023 18:26

How can you leave money to someone who isn’t even born? You are pulling a fast one and trying to get UC which you won’t be entitled to. Heard it all now !

Well yes it'll depend on the wording of the will and the probate docs.

(Assuming in England.)

monicagellerbing · 23/09/2023 18:28

So you have plenty of savings which you got BEFORE your daughter was born yet you'd rather claim benefits than use the savings. Brilliant

titchy · 23/09/2023 18:28

'Issue' in a will refers to children born as of the death date, but not yet born when the Will was made. I too am confused as to how an unborn child could inherit anything. It was you that inherited wasn't it?

Original poster
wineta · 23/09/2023 18:43

I'm not trying to pull anything, I'm trying to protect dad's inheritance. It was fro. A grandparent who left a sum in trust for my son and as I was pregnant at the time for my issue. Sadly, they died before dd was born. I thought by putting it in my name, it would be safe for her. Obviously, didn't know x years later, this savings rule would apply.

I have the will and probate and all paperwork etc so I will try and speak to them and see what the situation is.

I'm pretty sure that ehally (and morally) can't touch her money and so if we lose the UC then so be it although it will be tough.

And to those people saying I'm trying to screw the system, please dont judge me by your standards

OP posts:
Original poster
wineta · 23/09/2023 18:43

*DD's inheritance

OP posts:
Original poster
wineta · 23/09/2023 18:44

*legally - I hate no edit function

OP posts:
TheSnootiestFox · 23/09/2023 18:45

The OP absolutely hasn't got 3 months to sort it, she'll end up being charged with fraud as it will be seen as depriving herself of capital. Its just the same as signing your house away before needing a care home. The money should have been in the child's name as soon as they were born!

AutumnCrow · 23/09/2023 18:48

wineta · 23/09/2023 18:44

*legally - I hate no edit function

There is an edit function now although I don't know if it works on the app.

senparents · 23/09/2023 18:52

TheSnootiestFox · 23/09/2023 18:45

The OP absolutely hasn't got 3 months to sort it, she'll end up being charged with fraud as it will be seen as depriving herself of capital. Its just the same as signing your house away before needing a care home. The money should have been in the child's name as soon as they were born!

Yes if it’s done now it will look highly suspicious to UC

dinsday · 23/09/2023 18:54

I agree it will look suspicious.

Original poster
wineta · 23/09/2023 18:55

Obviously, it seems like I should have put it in her name but I was dealing with losing my dad, having a poorly newborn and so just put it in a long-term savings account and sort of forgot it.

Lesson learnt.

OP posts:
dinsday · 23/09/2023 18:55

Though I had also been wondering why there are so many universal credit threads at the moment and this has answered my question. Everyone receiving tax credits is being moved onto universal credit!

Babyroobs · 23/09/2023 18:57

wineta · 23/09/2023 18:43

I'm not trying to pull anything, I'm trying to protect dad's inheritance. It was fro. A grandparent who left a sum in trust for my son and as I was pregnant at the time for my issue. Sadly, they died before dd was born. I thought by putting it in my name, it would be safe for her. Obviously, didn't know x years later, this savings rule would apply.

I have the will and probate and all paperwork etc so I will try and speak to them and see what the situation is.

I'm pretty sure that ehally (and morally) can't touch her money and so if we lose the UC then so be it although it will be tough.

And to those people saying I'm trying to screw the system, please dont judge me by your standards

If you have been asked to migrate to UC then you can have over 16k in capital and it will be disregarded under transitional protection for 12 months. However money will still be deducted from your monthly UC for anything between 6k-16k. If it's in your name it will be counted but as I say you have 12 months and if you still have it after that you won't be eligible for any UC any more. I imagine you have had since your child was born to put it in their name if it was intended for them but it is in your name ? Sorry I can't see a way around this for you as if you tried to move it now it could be seen a s deprivation of capital.

Fairymcclary · 23/09/2023 18:58

Do you have a copy of the will and the solicitors letter from when the money was released to you? Does the letter state please find attached a cheque for issue x ? I would obtain bank statements showing the clear audit trail of the money since the solicitor paid it in.

Get this together and then seek advice from UC.

Babyroobs · 23/09/2023 18:59

dinsday · 23/09/2023 18:55

Though I had also been wondering why there are so many universal credit threads at the moment and this has answered my question. Everyone receiving tax credits is being moved onto universal credit!

Yes managed migration is currently being ramped up for those just on tax credits. It is still way behind schedule but does seem to be increasing pace a bit now.

Babyroobs · 23/09/2023 18:59

wineta · 23/09/2023 18:55

Obviously, it seems like I should have put it in her name but I was dealing with losing my dad, having a poorly newborn and so just put it in a long-term savings account and sort of forgot it.

Lesson learnt.

How long ago did you lose your dad?

Babyroobs · 23/09/2023 19:01

TheSnootiestFox · 23/09/2023 18:45

The OP absolutely hasn't got 3 months to sort it, she'll end up being charged with fraud as it will be seen as depriving herself of capital. Its just the same as signing your house away before needing a care home. The money should have been in the child's name as soon as they were born!

She has 12 months transitional protection after applying for UC where she can still claim UC even though she has the capital ( assuming it is over 16k ), but as per my previous post she will lose money each month as there will still be deductions for anything over 6k- 16k. So if op has more than 16k, there would still be a deduction of around £170 a month.

AutumnCrow · 23/09/2023 19:03

wineta · 23/09/2023 18:43

I'm not trying to pull anything, I'm trying to protect dad's inheritance. It was fro. A grandparent who left a sum in trust for my son and as I was pregnant at the time for my issue. Sadly, they died before dd was born. I thought by putting it in my name, it would be safe for her. Obviously, didn't know x years later, this savings rule would apply.

I have the will and probate and all paperwork etc so I will try and speak to them and see what the situation is.

I'm pretty sure that ehally (and morally) can't touch her money and so if we lose the UC then so be it although it will be tough.

And to those people saying I'm trying to screw the system, please dont judge me by your standards

So there is a trust fund? ('... left a sum in trust'.)

Can you speak the the executor of the will as well as examine the paperwork with a legal adviser? Was the executor a family member or a solicitor?

I'm wondering if the will said that a sum was to be left in trust but the executor wrote you a cheque, effectively to do with as you wished? You might be better re-posting this, with a much info from the will as you have, in Legal Matters.

Babyroobs · 23/09/2023 19:04

AutumnCrow · 23/09/2023 19:03

So there is a trust fund? ('... left a sum in trust'.)

Can you speak the the executor of the will as well as examine the paperwork with a legal adviser? Was the executor a family member or a solicitor?

I'm wondering if the will said that a sum was to be left in trust but the executor wrote you a cheque, effectively to do with as you wished? You might be better re-posting this, with a much info from the will as you have, in Legal Matters.

Show quote history

Sounds like op put it in her name though so not still in the trust fund ?

Original poster
wineta · 23/09/2023 19:05

AutumnCrow · 23/09/2023 19:03

So there is a trust fund? ('... left a sum in trust'.)

Can you speak the the executor of the will as well as examine the paperwork with a legal adviser? Was the executor a family member or a solicitor?

I'm wondering if the will said that a sum was to be left in trust but the executor wrote you a cheque, effectively to do with as you wished? You might be better re-posting this, with a much info from the will as you have, in Legal Matters.

Show quote history

The money left to my son was put in Trust - not the money for the issue - no idea why, I wasn't involved in the writing of the will (we didn't know how poorly my Dad was as he didn't want me to worry as I was early pregnant).

OP posts: