Why does it work out better to have universal credit rather than using the chunk of cash?xxx

[Cloudy93]

I know this isn't really an AIBU, but I thought it might get more traffic here!

To cut a very long story short, I'm in the process of getting out of an abusive relationship, which has involved years of financial abuse and left me with very little savings. Since I left, I've been supported by charities and have been really lucky in securing a council house for me and my son and getting universal credit to top up my wages.

We are in the process of selling what was the family house. My ex husband (who has been difficult about every aspect of this separation, but especially the financial side, eg trying to get out of CMS payments) initially said we should split the profits of the house 70/30 to him. I have since had advice that I should be entitled to 50%.

My concern is that as soon as I receive these funds, he will report me to get my universal credit cut off. I have debts that I will be paying off with some of the house funds, but that will still leave me a little chunk of money. I would like to keep receiving universal credit because I only work part time. Would it be totally illegal/immoral to set up a bank account or trust fund for my son and put all the money in there for his future so I can continue receiving universal credit payments? What other options do I have?

Thank you so much in advance for all your help, happy to provide more info if needed.

That sounds like deprecation of caputal

Would it be unreasonable to have the tax payer support you to work part time hours and keep the proceeds of your house sale? Is that what you're asking?

Can't you buy a new house/ flat? I think UC allows for money after a break up for a certain amount of time.

No this is not allowed. The money will be in your name and so UC would be able to see you had that sum and deliberately changed who it belonged to.

If you have under 6k in savings your universal credit won’t be affected anyway. If you have less than 16k in savings, then you’ll lose £4 something for every £250 over 6k you have so still reasonable.

If you have over 16k and are in a council house with cheaper rent then you’re doing better than a lot of people.

The answer is no as pp have said. However surely if you are getting a lump sum the best thing would be to reinvest it in property if you can. UC will allow for a period of property reinvestment of funds. In addition there are circumstances where you can have a property and get UC if your income is low

However to echo pp. It's completely unethical to squirrel away money while expecting government money and a house with lower than average rent. And I say this as someone in private rented property, working full time and in receipt of UC but no savings.

‘AIBU to hide my cash so taxpayers can keep me in universal credit?’

Yes

It's fraud op

Put it towards a house as you legally have some months breathing space to do that.

So you'd like to continue receiving UC even though you wouldn't be entitled to it?
That's called theft!

Sorry OP but as much as I'm sure you'd love for the taxpayer to support you, so you don't have to spend your own money, that isn't really how it works (and is a completely unethical suggestion)

Of course you're being unreasonable.

I'm sure we'd all like to sit on our money and receive benefits on top, but that's not what it's for.

How much will you actually get from the house sale?

Wow.

You want the taxpayer to fund you so that you don't have to spend your own money. How does anyone even think this way?

You have a year I think after a house sale to use that money to purchase another house. As the low income parent and main child carer in court you would likely recieve more than 50% of the house equity to enable you to purchase again (if thats at all possible). Would need to see the figures to know if its worth a fight, but also as DV victim you are entitled to legal aid so I would look into that.

Youd be better off moving this to relationships or divorce as in AIBU youll get all the nasty people replying.

When my FMH house sale funds were released to me following financial settlement from my abusive ex, I terminated my UC claim. If you want to keep your savings, but need more money, you'll have to increase your income through working more hours.

People aren't being nasty, op is asking about hiding savings so she doesn't have to use them for bills like other people.

Op, clear all your debts, use what you need to make the house comfortable, do reasonable shopping for household and personal items. See where you are. And then yes, you use your own money to pay your own bills. You could open a savings account and put an amount in a month but probably not much and you'd need to check. If your claim stops, you can reapply once your savings are under 16 or 18k, as pp said

I believe it's disregarded for a year; so you'd have a year to use the money to set yourself up not to need UC. I'm presuming that you are not planning to buy again, if you've got a council house.

You can't put it in a trust in your son's name, though. It's deprivation of capital. This can sometimes happen in inheritances or the like, where it's left from someone directly in that person's name - but this is yours, in your name, so if you put it in a trust, you'll be treated as if you still have it.

You need to be very mindful of Deprivation of Capital.

OP, If it were me, I’d be looking for full time work. With a lump sum in the bank gathering interest, and no debt, a full time job should support you in a council house.

Dear Lord. No.

Don't try to hide it. That would be fraud.

Once you have been living in a council property for 3 years you are eligible for Right to Buy and the capital held in the property you live in is disregarded for the purposes of assessing your savings. If you won't reach eligibility for Right to Buy you will still qualify for social housing targeted Shared Ownership schemes which will enable you to use your capital to invest in a home. On universal credit you will be allowed to claim for the nortgage interest in a similar way to what you currently claim for rent.

You'll have a year's grace period to arrange this after receiving the capital but if you end up not using it to buy a property but instead spend it on holidays etc you don't get the grace period.

I'm sure you know this is fraud/ deprivation of capital. If you have less than 16k in savings you can still get Uc but with some deduction in monthly amount for savings between 6k and 16k.

It is not disregarded unless op is buying another property which it doesn't sound like she is?

Highly likely the fraudster OP won't be back

How old is your son? Why are you only working part time?

Right some comments are nasty!
I absolutely do not intent to claim benefits on top of the money from the house sale. I have lots of debs because of my ex so the money from the house will finally pay it off. I also need to give the money back to family members who helped me to move out.
comments about why I am working only part time yet again, do you think I am a lazy cow sitting on my ass all day?
No, my ex doesn’t want to take care of my son and I am unable to send him for full time into the nursery.
Because of my job I work long hours far away from my home now so it’s difficult to work it out.

Also, they request evidence of how you have spent the money- if you are paying family members back, have you got a contract confirming the money they gave you was a loan?