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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

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

72 replies

Cloudy93 · 23/01/2024 13:09

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.

OP posts:
AgentProvocateur · 23/01/2024 18:22

Cloudy93 · 23/01/2024 18:14

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.

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?

You are literally asking how you continue to claim benefits after the house sale…🤔

FuckingHellAdele · 23/01/2024 18:24

Cloudy93 · 23/01/2024 18:14

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.

Do you think people can't scroll up? Grin

AStrangeStateofMatter · 23/01/2024 18:31

Cloudy93 · 23/01/2024 18:14

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.

Realistically I think you will have to stop the UC, pay off the debts etc asap and then claim again once you don’t have the money anymore.

It is possible to give the money to someone else but it isn’t legal.

roarrfeckingroar · 23/01/2024 18:33

You mean can you commit benefit fraud?

Hoardasurass · 23/01/2024 18:33

@Cloudy93 when you get the money, you need to tell UC you will be able to pay off any debts that you have without it classing as depreciation of funds (keep records of payments as you may be asked for evidence). They will then assess your circumstances based on the savings you have left after your debts and with your income.
If you have over £16k left then you will need to use your savings to cover what you would have got until its under £16k and then you would get a portion of your UC back, again topping it up until you have less than £6k when it wouldn't effect your claim. Obviously this could take quite some time depending on how much you receive vs debts and you maybe in a position to increase your earnings before you eat through to much of your savings.

SecondUsername4me · 23/01/2024 18:35

How much money will you be receiving?

If over 16k you use that to pay your living costs then when it goes under 16k you get UC again.

SgtJuneAckland · 23/01/2024 18:35

My understanding is there is a grace period after the sale of a property, you will need to keep very clear evidence of where the money is going, debts like bills or credit cards are easy, family not so much because it could be seen as you deliberately trying to hide the money. How much do you owe to family members? Can you evidence receiving the money from them and what it was spent on, eg to furnish the emergency accommodation to pay nursery bills , replace the car your ex kept so you can get to work etc, it is also best to get them to put something in writing to say they loaned you X amount for y purpose to be repaid on the sale of your property

NeverAloneNeverAgain · 23/01/2024 18:38

Your best bet would be to contact them via your journal for the most accurate information (and a record of the conversation!).

Generally the money from your house sale would be taken in to consideration, although discounted for 6m if you're buying somewhere else. They can also check land registry for sale amount so you would be best being honest.

You already know its not legal to move it or hide it away, and doing so would create problems for you when caught - as you said your ex is likely to report this. Try seeing this as an opportunity for a fresh start with minimal debts. Savings can be built up. You've got out a difficult situation please don't put yourself in another one regardless of motive or how tempted you may be.

Babyroobs · 23/01/2024 18:56

SgtJuneAckland · 23/01/2024 18:35

My understanding is there is a grace period after the sale of a property, you will need to keep very clear evidence of where the money is going, debts like bills or credit cards are easy, family not so much because it could be seen as you deliberately trying to hide the money. How much do you owe to family members? Can you evidence receiving the money from them and what it was spent on, eg to furnish the emergency accommodation to pay nursery bills , replace the car your ex kept so you can get to work etc, it is also best to get them to put something in writing to say they loaned you X amount for y purpose to be repaid on the sale of your property

Edited

There is no grace period. Once capital over 16k hits op's account she will need to report it.

Tumbleweed101 · 23/01/2024 19:03

I think you can pay off debts and do things like buy all you need for a new home. Spend the money on what is needed and it will be accepted as not an issue. Maybe reinvest in property if that is something that would work for you. I think you can put some money into savings for your child but you need to look into if there is a limit on how much of the money you could do that with.

I can understand not wanting to lose all your money onto living costs especially as you're essentially losing a house but you have to be careful to follow the rules otherwise it could be seen as fraud.

SgtJuneAckland · 23/01/2024 19:29

@Babyroobs oh yes she needs to declare it but if it's capital from the sale of main/only residence there is a grace period. It's in case someone sells and the onward purchase falls through, there'd be no sense in using the capital which would prevent them being able to buy a home

Waterfallsandrainbows · 23/01/2024 19:35

Pay off your debts. Put some into an account for your child. Pay off your family but I wouldn’t let them hold cash for you as it’s fraud.

How much will be left then?

Babyroobs · 23/01/2024 19:36

Waterfallsandrainbows · 23/01/2024 19:35

Pay off your debts. Put some into an account for your child. Pay off your family but I wouldn’t let them hold cash for you as it’s fraud.

How much will be left then?

It would be considered deprivation of capital to give to her child, unless small reasonable amounts. Paying back debts is absolutely fine as long as op has records of what was lent by family otherwise anyone could say their family had lent them 10k and they need to pay it back !

DeltaCity01 · 23/01/2024 19:41

@Cloudy93 a qualified account will be able to advise you on tax avoidance methods which is fully legal to do

Hotchocolate2023 · 23/01/2024 19:45

It would be unreasonable to comit fraud, yes.

gamerchick · 23/01/2024 19:45

I get the fuck on it is to get UC. However, you're asking in the wrong place OP. You need to speak to someone from DWP and don't hide anything. You will get caught eventually and it's better not to have your money stopped when you've ran out of your savings

IPlayMyGuitar · 23/01/2024 19:50

The comments are nasty because you are asking people, many of whom work full time and pay their taxes, the best way to make a fraudulent claim. We don't want to work so you can keep your nest egg. We want you to pay your fair share too.

Workworkandmoreworknow · 23/01/2024 20:06

My understanding is there is a grace period after the sale of a property

That certainly based to be the case - 6 months when my marital home was sold and I was on Income Support. I bought outright with the divorce settlement and some family help - I had to evidence it all but the IS didn't stop. I bought and sold over a 4 month period. You need specialist advice to.be clear about your rights here - speak with Citizen's Advice.

AnotherEmma · 23/01/2024 20:26

Oh dear. I haven't even read all the replies as I can just imagine how this thread is going. OP, maybe get your thread moved to Money Matters or just leave it and contact your local Citizens Advice instead, for non-judgemental advice about your situation.

Do you know roughly how much money you'd have left after paying off all your debts?

DeltaCity01 · 23/01/2024 20:27

IPlayMyGuitar · 23/01/2024 19:50

The comments are nasty because you are asking people, many of whom work full time and pay their taxes, the best way to make a fraudulent claim. We don't want to work so you can keep your nest egg. We want you to pay your fair share too.

Edited

at the same time the uk does have tax avoidance measures that are fully legal, so why is it wrong to try to save ££

Gem230 · 23/01/2024 20:33

Cloudy93 · 23/01/2024 13:09

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.

You get 6 months of capital disregard for the capital from the house sale .

If you have over 16 k you will get no universal credit .

Giving money away including putting it in a trust fund counts as deprivation of capital .

Things you are allowed to spend money on that don't class as deprivation of capital are :
Paying off debts
A deposit on a new home ( you could get shared ownership and universal credit would help with the rental part )
Things to improve your quality of life such as a car if you need one , home improvements or a family holiday

Gingeri · 23/01/2024 20:50

Many years ago I had to claim income support while I was caring for someone. I moved house during that time. I moved to smaller place and had money left over to pay off debts and foe moving expenses. I gave DWP all the information and as much proof as I could and it all worked out ok for me.

Just be honest with them.

Ghentsummer · 23/01/2024 21:13

Your entire first post is about finding ways you can still claim benefits after receiving the house sale money. It's nasty to try to commit benefit fraud.

Spirallingdownwards · 23/01/2024 21:20

SuperGreens · 23/01/2024 13:45

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

When you say nasty do you really mean law abiding people who don't condone benefit fraud?

Alohapotato · 23/01/2024 21:24

I'm speechless...

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