To ask about money in trusts and benefits?

[DuckAndPancakes]

If my children are left money as inheritance, to be held in trust for a house deposit when they are adults, will it be considered as part of our savings with benefits?

It is looking like DP and I will never own our own home, increasing house prices and "poor choices" just put it completely out of reach. We've both lost grandparents in the last year and lots of talks about inheritance, money, wills etc. Is there a way that we can legally, above board, have money left for the children instead of us, so they get a chance when they are adults to own a home?

If we received lumps of money in savings, it would cancel our benefits and we would essentially have to live off that money, with no way to use it to actually better our lives or buy a home. I'd rather we were skipped and written off, so we can see them prosper.

@MrsFin

Don't you think that, for the rest of us who are effectively paying for your benefits, the right thing to do would be to accept any money left to you and to reduce your need for benefit payments? To do anything else is immoral art the very least, even if not illegal

Do you own your own home ? Or pay astronomical rent ?

@MrsFin

Don't you think that, for the rest of us who are effectively paying for your benefits, the right thing to do would be to accept any money left to you and to reduce your need for benefit payments? To do anything else is immoral art the very least, even if not illegal

And I'm sure when you need hospital treatment you wouldn't think about going to the NHS and making the rest of us healthy people pay for it if you've got savings and can afford to pay. Yes, you might be "entitled", but the moral thing to do is to go private.

I have a mortgage, but I also pay income tax, and I resent people who do as much as they can to avoid coming off benefits.
I worked when my DCs were small. Most of what I earned went on childcare, but it was worth it in the long term because once they were less dependent I had a good start on being able to increase my salary.

And I'm sure when you need hospital treatment you wouldn't think about going to the NHS and making the rest of us healthy people pay for it if you've got savings and can afford to pay. Yes, you might be "entitled", but the moral thing to do is to go private

Different thing entirely.

My benefits bill is paid by all my family members who pay massive amounts each year and have never taken anything out. Or, at least, that's their attitude. DP works and pays tax, I've worked through the years and paid tax, our families have paid in for years, and now we need it we are made to feel guilty for it and for wanting to be in a position to ACTUALLY be able to get out of it

Speaking of things being morally wrong, we've had people tell us we should give up our house and "separate" by living with our respective parents for a few years. He gets paid full salary with hardly any outgoings, I claim benefits as a single mum (but no housing benefit) and we save up til we can afford somewhere. If I were suggesting that, or trying to suggest that I could still receive housing benefit to pay my mortgage, I'd get it.

I just want to ensure my children are set up for as best possible, which I don't think is exactly morally reprehensible. Plus, I've stated fairly clearly I'm not planning on doing anything below board.

Setting up your children for life because you are doing your best to avoid accepting any money left to you do you can still claim a high benefit payout is a bit dubious to say the least.

Except, I'm not actually doing anything. If we came into a lump of money and it meant that we would need to stop claiming benefits, we of course would. We'd try and spend as little as possible of it and try not to waste it, and hope that circumstances would allow us to change our lives with it long term.

My mum is "depriving me of money" by her choice, because she doesn't want it to go on living expenses and that is her right to do. I can't demand that off of her to save the government some money. If I inherit money and its in a savings account over a threshold, I will declare it and accept any reduction in benefits that comes with it.

@Viviennemary

Setting up your children for life because you are doing your best to avoid accepting any money left to you do you can still claim a high benefit payout is a bit dubious to say the least.

Says you and the likes of MRSFINN .. who own their own home . !!! Who in a few years will NEVER need to pay for their home !!

FGS have you NO humanity for those who are still paying over a £1k a month into their retirement because their family /chips /circs didn't fall the way YOURS did ???

Do people on here even know what it's like to rent ?

I think not !!!

More expensive than a mortgage but can still be moved on at the whim of a landlord...

(I own my home btw - outright thanks to the generosity of grandparents... but please try and have a little thought for those - whereby this is an impossible dream

I'm surprised nobody's reminded me yet that I shouldn't have had children that I couldn't afford. Or not had them with MH problems. Or if I didn't already own a home and earn £60k a year.

Bloody retrospect.

Your Mum doesn't want her money going towards your expenses but doesn't mind other folks. Then you moan because other folk (strangers) don't want their money going towards helping you instead of going towards the people in real need. Talk about warped thinking.

@DuckAndPancakes

Except, I'm not actually doing anything. If we came into a lump of money and it meant that we would need to stop claiming benefits, we of course would. We'd try and spend as little as possible of it and try not to waste it, and hope that circumstances would allow us to change our lives with it long term.

My mum is "depriving me of money" by her choice, because she doesn't want it to go on living expenses and that is her right to do. I can't demand that off of her to save the government some money. If I inherit money and its in a savings account over a threshold, I will declare it and accept any reduction in benefits that comes with it.

Just ignore! You have no need to justify yourself to anyone. Claiming benefits (and paying tax) are not a moral transactions. The DWP never says: "Awww, you're not entitled under the rules, but you've got a good moral case, so we'll pay out anyway."

If you comply with the rules, and the rules say "yes" then take the money! Governments pretty soon change rules they don't like, and that has been a one-way street towards meanness for twenty years.

What would be REALLY nice is if the housing market hadn't become a fantasy world for so many people.

@Viviennemary and my parents pay tax? A massive amount of it. THEY are happy for THEIR tax to pay towards the benefits we get. They've also been the guarantor so that we could rent somewhere privately and helped us elsewhere too. What they independently do with their earnings, savings and equity is none of my business, and its sure as fuck none of yours.

I'm a bit confused how your mum is holding on to your inheritance. From the amounts mentioned I am assuming that the estate went to probate. Once probate is granted my understanding is that the Executor has to comply with the will and pay out the bequests to the beneficiaries. Probate is a legal document issued by the court. Is this money in an account in her name as if anything God forbid happens to her you would have to prove that the money was yours.

Could your parents lend you money for a deposit & then you could either get a shared ownership or normal mortgage?

45k should allow you to borrow 200kn

Have you spoken to a mortgage provider and looked into shared ownership Op? I just googled and housing benefit will still help with the rental element of it. There is lots of speculation on this thread but have you spoken to CAB or a good benefits advice service about what might happen in various scenarios? Wishing you the best, it does sound tricky!

@DuckAndPancakes We we're in the same position. With our (surprise!) inheritance we bought a house to let and cancelled our benefits. It was the best feeling ever. I understand it's really hard to get a mortgage on a low salary-the house we bought is 300 miles away from our home but was 1/4 of the price we'd pay for a similar property here. Financially we're in almost exactly the same position but it is so worth it! Could you do similar?

Fat thumbs and autocorrect! Apologies!

We have got all the Grandparents to change their wills so.money goes to the grandchildren for this exact reason. There is no hope now for my daughter and son in law to improve their financial situation and I do not intend the house I worked hard to pay for to be used to subsidise the benefits system I have also paid into all my working life.

The inheritance I could leave them would support them for 10 years max and then they would need to go back on benefits.

The inheritance I can leave my grandchildren could make a massive difference to their lives.

My.money - my choice.

[quote DuckAndPancakes]@Jangle33 because if we had, say, £20k in savings and used that money towards our rent, it would last a few years before we would have to be back on benefits because there wasn't enough, or it had depleted to a level where we would be eligible for them again.

Whereas, if we could offset getting that money until we were in a position to buy a house, we then wouldn't need to claim the benefits again at all. Or at least, that's the hope and theory in an ideal world. Or, our children would never have to fall into the benefits trap, because they'd be able to buy somewhere and get on the property ladder in their 20s.[/quote]
Your children may not fall into the benefits trap. Alot of people don't. They may secure themselves a good income and be able to save for a deposit. I understand the worry though.

@MrsClatterbuck
My mum isn't holding on to inheritance for me, currently. She's well off and has lots in savings and has helped my brother out with house buying, getting married, buying a car etc. She has always said to us that she would rather us have things whilst she's alive, if she can help. She doesn't see any point in giving us a lump of money that we couldn't use for house buying, basically.
Her mothers estate is still in the executors account because she doesn't want to distribute it, but I'm only a beneficiary if something happened to my Mum or Uncle.

There's just been a lot of talk about inheritance, wills, "lump sums" and its hard to know what any of it will mean in the long run. It isn't exactly the easiest of conversations to have with people in real life, either.

@Upamountain43
Sounds exactly like my Mums outlook, and I can't criticise her for it.

@DemBonesDemBones that sounds great, did the income from the rental manage to cover the loss of benefits? Relying on benefits is crap, every bit of overtime DP does, we declare and then get a letter a few months later asking us to pay back more benefits than what he earned. Sometimes, it feels the system is designed to fail if you try and get out.