Posted this in money matters but didn't get any response so I've re posted here for traffic.
My mother (my son's grandma) has a savings account in his name with £8000. She's had it for him since he was a baby and he's almost 8 years old now.
She has retired last year and now claims housing benefit.
Last week her bank wrote to her telling her they're changing all children's accounts to be in the adults name. This has worried her as she said she's not declared that account on any forms before as she didn't even think she had to as it's not her money. It's all in my son's name where she is the trustee until he's 18.
As she is so worried about the account going into her name and confusing things with her housing benefit as they may think it's her money she now wants to close the account and give the money to me to open an account in my son's name and be the trustee.
I am also in receipt of Universal Credit and have savings under the £6000 limit.
I'm confused about whether if I open this account for my son if I have to declare it and also if it will affect my entitlement?
Surely it shouldn't as it's not my money, it's for my son when he becomes an adult.
Can anyone explain this to me? The whole thing is stressing me out and I can't seem to get a clear answer anywhere.