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.

Oh, so this is the current reason why the country is in the state it's in?
It seems there's a new reason every week, always benefitting someone's argument.

Don't be so dramatic.

It's a good thing people have you to tell them exactly how they are feeling and why.

Everyone here is just resentful because OP is a single woman with a good job, gotcha 👍🏼

@CheekyHobson a high earning ex partner? Is it really so incredible that a woman, a female, could earn and save this? I’m sorry I don’t fit your frankly strange views of people with money. Yes I still have insecurities and worries and anxieties - having money doesn’t magically remove that or give me automatic qualifications in finance. I’ve been successful and worked hard but life can be tough and I wanted to protect my child’s future as much as possible. Legally. Perhaps you don’t know high earning women closely - I do and I’m not on my own with these thoughts, especially as a single parent. Not all women feel the need to rely on a man financially.

Surely you can set up an educational trust fund to ring fence the money?

https://www.moneymagpie.com/manage-your-money/secret-tax-benefits-of-an-education-trust-fund

Have a read

@Skibberblue yes this was suggested pages ago. My child will have started school and the discussion will be continuing by the looks of it.

Congratulations, you are the most out of touch person I've ever encountered.

It’s not benefit fraud, don’t be so dramatic.

Have you even read up on what a trust fund is?

If I were you I’d be asking the moderators to remove your post due to the sheer embarrassment of peddling lies.

And I think the OP should leave the thread up to show just how much jealousy there is of a successful single mother.

The irony is the people here moaning about this hypothetical scenario where OP loses her job and claims UC are probably on UC themselves. OP is paying high taxes to fund YOUR benefits.

OP can legally ring fence that money which will mean she could be eligible for UC in future (agree that its morally horrible), but may regret doing so. UC pays absolute peanuts. Private school may not mean much when OP cant afford her mortgage.

OP just incase it matters, UC could investigate whether you have "deprived yourself of capital". Google "deprivation of capital UC". Purposely moving capital to become eligible for UC is considered wrong. If they decide that you have done this, they can still choose to not pay you UC as they'll treat you as still having the capital you deprived yourself of even if you cant access it. This is done to prevent people doing exactly what youve asked about doing.

In reality they'd usually only investigate this if you moved your capital just before claiming UC though, so if you moved it now and didn't claim UC for a couple of years say, they likely wouldnt notice, even if you really shouldnt do it.

Also someone mentioned "contributions based Universal Credit" earlier in the thread. Don't know if this has been cleared up already, but this doesn't exist. UC is always means tested and over 16k in savings excludes you unless you're claiming as a result of managed migration. JSA and ESA can be contribution based, but not UC.

It is a problem for society when parents would rather watch their DC starve than be state educated, and parents give them a pat on the back for the 'sacrifices' they are making. That is why the cycle continues, because DC learn very early that nobody cares, not really.

How would her child starve? She’ll be getting all that lovely UC money.

The OP has skills, demands a high salary and according to her, works very hard..... therefore will not need benefits, she will easily get another job, probably be offered one within her redundancy period.

However, should she become ill, then her monies in a trust fund wont help her and disability benefits aren't great.

But what gets me, assuming this thread is even "real" is the lack of pride she is showing... does she really want to be signing on, when she engineered her eligibility?

Its just another example of the graspiness of the wealthy, like millionaires claiming DLA or MP's claiming expenses for a pack of paper clips....

People should remember that life is finite and it can end very unexpectedly, money wont help you then.

I don't agree with the hypothetical situation the OP is proposing but I'm not and never have been on universal credit.

You should ask them as well...

Setting up a trust fund can be consider deprivation of assets for UC claims.

Discretionary trusts were previously disregarded for the purposes of income-based benefits. However, this is no longer the case: these trusts are increasingly being treated as deprivation of capital – i.e. using the trust to purposefully reduce capital in order to be eligible for Universal Credit benefits

Ah yes sorry. That will provide her with a fridge full of food, cover her mortgage, petrol to private school , heating AND a new sky TV package 🤣

It is a bigger moral issue because this is just another way that the wealthy can game the system to their financial advantage in a way that low and middle income people/families cannot.

You think that you have the moral high ground because this money is to pay for your child's education. This would be acceptable if there wasn't an alternative to private education, but there is an alternative that 93% of families use.

The wealthy can use off shore tax havens and trusts to avoid paying taxes, an option that isn't available to low income families on PAYE.

I don't understand how you would feel comfortable claiming Universal Credit which normally you wouldn't be able to claim if you had savings of more than £16000 when you have stashed £200,000 in a trust.

Where is the intent and pre-ordination if OP is in a well paid job and just looking to insure her child's education against any contingency? I can't see one.

You'd have to ask DWP, as we can see, some people will do anything to get benefits.

Thankfully, looks like a TF wont be an option for OP :)

It isn't benefit fraud, but lots of people would agree she shouldn't be able to stash a huge sum of money in a trust and still be eligible for Universal Credit.

Right wingers always accuse people who want a fairer system of the 'politics of envy'. You accuse posters disagreeing with the OP of being on benefits themselves and say that the OP's high taxes support them. You sneer at low income people on UC, but are perfectly happy for the OP to claim UC, even with such a high amount of savings.

You are the hypocrite here, not the posters who disagree with the OP.

Something else to consider OP, my DS is autistic. At 3 he seemed very normal. Most private schools would not accept him now. He is doing well at state school with lots of support. He will need much more input from us in life than most DC. He will be expensive. How would you feel if you ploughed all of your funds into a school that will not accept your DC and leave nothing to support them?

Did you get Child Benefit? Also funded by OP when she likely doesn’t get it herself.

Other than the window cleaner I can't remember the last time I paid anyone cash, and as he's self employed it would be up to him to declare tax if he makes more than £1k.
I have never taken cash in hand work for anything. To compare the privilege of OP, high earner, money saved, can afford to waste money of private fees to anyone earner a cash in hand pittance is ridiculous.

Sigh. Thats been covered upthread. This is if you are the BENEFICIARY of the trust fund. OP wouldn’t be the beneficiary, her dc would be. And also she would have put the money in the fund years before any hypothetical UC claim, so your deprivation of capital claims are bogus.

Oh it definitely is an option 😊💃

If it’s such a pittance, why do you begrudge it to her? If she’s got £200k in savings she’s probably paid double that in tax.

She’s more than earned the right for some state help in the unlikely event she needs it.