To ask how I can successfully ringfence this money? (Please don’t post for moral judgement)

[Jaalp]

I am a single parent to a 3 year old who will start school in the next two years. I have saved up a significant amount of money for schools fees. As a single parent I am constantly worried about job loss or anything else that could affect things. I am aware that if for some reason I was made redundant, for example, if I have more than a certain amount in savings then I would be expected to use this before claiming universal credit etc.

I have no intention of claiming universal credit but life happens and I have to be conscious of the potential things that could happen.

My question is, is there any way to put this money in an account for my child that would be protected as theirs and not counted in an assessment for universal credit etc should that ever happen?

Please don’t make this is a private school bashing thread or about playing the system etc. I’ve worked hard all my life and intend to continue to do so. Thanks.

Honestly in your position I’d rethink the private school plan.

It just isn’t worth it if you aren’t rich. If you can afford it comfortably then sure why not, but if it represents a huge sacrifice and outlay for you, if you’re worrying about stuff like this - then you are making a big mistake. In terms of overall benefit for now and the future you would do better for you and your DD to prioritise paying off the mortgage, secure saving so that you can give her a house deposit - it is SO MUCH money that you could do SO much more with in terms of both security for her future and enjoying the present - holidays, experiences, clubs, music lessons, everything.

I have a friend who scraped and saved for private and completely regrets it. Their kids enjoyed it, their results were ok, no they didn’t get that ‘private school confidence’ everyone talks so much about because what people fail to realise is that 85% of that comes from being secure in the idea that your family is well off, and never having to worry and knowing your parents and their equally rich friends never have to worry. It’s inextricably linked to just the simple effect of wealth and privilege.

They could have saved massive deposits for their kids and enjoyed a much less stressful busy childhood with them. They could have gone on more holidays and had less pressure. They weren’t rich enough to do it without worrying about it, and have said since that that should have been the cut off. If you have to worry about affording it then just do not fall into the trap of thinking it’s a golden ticket.

Sorry, but should you be made redundant and need to claim UC, your daughter’s possible school fees would be the least of your worries, surely? You’d hardly want to be sending her to a PS if you were long term unemployed and your home was at risk? UC will only cover so much, after all. Ie Wouldn’t you actually want access to that money to live on?

If sending her is so precariously predicated on you not losing your job, then I think you would be better off investing that money in a house within a catchment area of a great school so that it cannot impact any UC claims you might need, and you can draw on the equity for university fees when she’s 18? If you needed to claim UC at any point you’d be entitled to a 6m payment holiday on your mortgage and could better manage on your reduced income while job hunting - and your DC will not be adversely impacted by having to changes schools or being the only kid with an unemployed single parent?

Speak to a lawyer. I think you can make a trust fund for your dd.

Not the house you live in or other 'luxury' items... jewellery, cars.

You can’t hide it. Thats fraud, and you will get found out. 🤷‍♀️

My understanding is it applies if you’re a beneficiary of a trust. In this case OP would not be the beneficiary.

They would if you tried to sell them though. Not much use having those things if you're living off 300- 400 a month and can't put petrol in the car or go anywhere nice for the jewellery or afford the tax and insurance etc.

They do for houses otherwise they would pay your mortgage.

But they don't count them as assets.
Therefore you'd be entitled to UC. (And wouldn't need to sell them)

UC can amount to a lot more than £300.

The house you live in doesn't count.

An additional property does.

No they don't pay the mortgage.

I trust the OP is not “using the system “ - having exclusively private health care, not using the roads or public transport, or intending never to use the police or fire service.

You want us to advise you on how to hide money from the gvt?

...why is it always people who actually have money who want to fleece the system? Yet those on benefits get a harder time and are scrutinised for every penny.

Shame on you.

If you hide it all away, be it in a trust or otherwise, you would have no buffer to use to live on should the worst happen and you do lose your job. UC may cover the very very basics depending on what you are entitled to but it does not pay your mortgage, all bills etc. You could find yourself with a wonderful pot for school fees that you cannot touch to live off, and end up losing your house!

Personally at far lesser cost I would pay for extra private tuition at exams time and have money available should they need to do internships or need a deposit for their first house share etc - in the meantime give them an interesting life with lots of opportunities and experiences- that benefits them too

wow, just wow.
If you lose your job then you would need to do what the rest of us would have to - use up savings and money you have until you get another one, and most people would consider themselves really lucky to be able to do that.

You want your child to go to private school AND to claim benefits. Nah love. No sympathy an PLENTY of judgement here... tell you what- why don't you send your child to a normal school, and sock that money away for a rainy day?

Also, if OP puts the money in an education fund now and then claims UC years later, it won’t be regarded as deprivation of assets. If she puts the money in a trust fund at the same time or soon before applying for UC then that would be deprivation of assets.

Haha! Not heard that expression in ages. Very apt here!

Pensions and Junior ISA's are 100% disregarded for UC purposes. However this will not help you as money is not accessible if you need to use it.

However paying off your mortgage/debt will get rid of the cash and is not deprivation.

Yeah you dont get to just say 'oh no i can't use that money to live off, I've set that aside for a non-essential luxury purchase!!'
Really doesn't work like that 😂

To answer your question, no you can't.

If you look on the Govt website regarding UC and what they take into account, they clearly state you cannot claim UC if you have money in trust funds or children's savings in your name. They take into account all savings that you have and rightly so.

UC is not there to allow you to ringfence savings that you would like to for other purposes.

Surely you can see that it's just not possible to do this, otherwise everybody would be trying to ringfence monies to pay for things that they deem important whilst wanting the state/taxpayers to contribute to fund monthly outgoings.

Those systems are usually more generous than ours at the lower end, plus have wider public support.

That is no excuse for cheating the taxpayer

If you look on the Govt website regarding UC and what they take into account, they clearly state you cannot claim UC if you have money in trust funds or children's savings in your name. They take into account all savings that you have and rightly so.

Can you link this? Remember the trust fund will
not be in OP’s name.

There are are ways to claim UC and get rid of savings(pensions,JISA clear debt). Even inheritance money can sometimes be "diverted" Perfectly legal and all within the rules.

Not cheating if you are playing by the rules. Don't really see how it could be defined as cheating. Shrewd financial management would be better term.