Can I ask a quick benefits question if anyone can help?

[NotUmbongoUnchained]

A family member has sadly passed and some inheritance is being split between us all, 10K each. My little sister is currently a student and claiming housing benefit and child tax credit.
Does anyone know how this will effect her or if it is under the threshold of the savings limit. I have looked on google but it mainly seems to be advice for pensioners and the benefits calculator doesn’t work for students. She would like to save the 10K into an account to save for a deposit on a house ideally for her and her daughter for a bit of security while she is studying.
Any advice would be much appreciated as she is stressing a bit about it and what to do. Thankyou.

It’s not going via a solicitor. It’s going to grandparents, who have decided to then share some of it out between all of us.

So she hasn't inherited it? That's very different to her having inherited it.

If your grandparents give her £5k then there is no problem with her benefits. Above that there is a problem.

Putting it in your name might deal with the benefit problem, but does raise other issues. Primarily if anyone reports her and it's spotted she could be in trouble. Also if anything happens to you then it's your money and she wont' see any of it.