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.

I tell you what though OP - while I have never needed benefits of any kind, I have seen families who rely on them and your in for a big shock if you think they're going to keep you in the lifestyle you've been used to.

Nobody needs to 'ask' DWP. They don't give advice, certainly not at this level.

So many people asserting the OP is morally wrong when in fact she wishes to divest herself of her (hard earned and already taxed) savings to benefit her child. It will be an irrevocable gift and OP can't get it back.

There is no nexus to claiming benefits here as OP said "I have no intention of claiming universal credit but life happens and I have to be conscious of the potential things that could happen." There is no 'engineering' at all because the trust is not a cog in a machine that will benefit OP. The probability is that OP will never claim, but if they do it will hardly make a dent in the savings before OP gets another job. However, OP wants to put her DC's education above her own needs by protecting the money from all risks. If anything the biggest risk is a 'gold digging' new partner and who can blame OP for that.

OP get some advice from a STEP solicitor and set the irrevocable trust up formally. You can then invest in a range of Investment Trusts and draw down the capital to pay for school fees.

Yes it is do-able. I would suggest a form of trust with your DCs as sole beneficiaries. The trouble is you will need to find Trustees who (a) you trust - no pun intended - and, if professional (e.g. a solicitor) won't charge the earth.

As for "deprivation of capital" if the trust is set up a certain number of years before any UC or other claim is made, this would probably not be an issue.

As an ex-financial consultant, I'm not judging. This is how I made my living for years.

I have never claimed UC in my life. I do not begrudge anybody claiming it , I think the wealthy (including myself there) should pay taxes to support those less fortunate. My issue is with her looking for ways to deliberately leave her DC without the basics. To do it willingly IMO is neglect.

Benefits change all of the time. Entitlement changes all of the time. Leaving yourself with no means to support your DC is a huge gamble.

Thankfully, looks like a TF wont be an option for OP :) @Alexandra2001

What are you talking about? A trust fund is 100% an option. Trusts have existed for nearly 1,000 years and will continue to be used. They protect assets from a whole host of risks. They are not particularly tax efficient, serving more family and social purposes than tax or benefit avoidance.

As to your use of 'thankfully' is there an element of envy that OP is a successful single woman who, through hard work, can afford to send her child to private education. And who will irrevocably deprive herself of those funds for that purpose. There is something morally right about that.

Wrong... again... the DWP decision maker has to look at the beneficiary AND anyone one with an interest in the TF.. ie the OP.

Ah so now you are a fortune teller!!! You ve zero idea on when the OP might "need" UC, could be never or could be a few weeks after setting up the fund.

Nope, as i said earlier, the OP is displaying a massive lack of pride and is rather stupid as she will be depriving herself of the funds required to live as she is accustomed too.
Plus rules changed in March, DWP will consider all interested parties in a TF, which will inc who set it up, when and why.

The Welfare system is a safety net and poor one at that, people finding loopholes to gain access to benefits are why the govt is - one reason - in so much debt.

yes this was suggested pages ago. My child will have started school and the discussion will be continuing by the looks of it.
OP, I think it's unreasonable to expect someone new to your thread to read all 20 pages of it so this is quite rude. You've had plenty of suggestions, some realistic, some not and some repetitive - if you're getting snippy, perhaps close it?

Have you also told off all the people being rude to OP?

Also, all that person had to do was read all of OP’s posts (not the whole thread) to see she had already responded to suggestions about a trust fund.

And I don’t think OP was even being rude. Pointing out something has been suggested already is not rude.

@Alexandra2001 indeed- and if the OP isn't a troll - she could be a high flying lawyer for all we know or a 'Mrs Rishi Sunak' with pots of family money - and just wants to look at ways of hiding savings or knows she's about to be made redundant and doesn't want to use her savings - who knows!!

I would also be interested whether those rushing to defend the OP would feel the same if it didn't involve those magical words 'private school' and if the OP had said she wanted to lock away her savings to pay for 15 years of round the world trips and still be able to claim UC if needed.

But the OP won’t have an interest in the fund because it will be for dd’s education.

And she won’t be applying for UC at the same time as putting the funds in a trust so your claims are bogus.

I’m not aware of a trust fund that allows you todo this, link it if you’re aware of one. Then I can give an opinion as to its morality.

No.

Its a TF for a child, so of course the OP has an interest, her child wont be managing it.... or set it up.
DWP don't give a hoot why its been set up.

I'm not making the claim, its the new DWP rules that have changed and rightly so.

Rules can also be tightened further.

imho the OP would be better off taking out a comprehensive unemployment/accident illness insurance.

also known as "standing on her own two feet"

Of course DWP cares what the fund is for.

Financial advisors upthread have said you’re wrong (obliquely) but you’re still doubling down.

OP has been standing on her own two feet and will likely fund some of the people on this thread with her taxes.

Would you have to pay tax on these savings? If so how would this be explained to the benefits office? You are paying high rate tax but are penniless? Something isn’t adding up!

Not if she’s sitting in that amount of money single mother or not

What does being a single mother have to do with anything? It is morally wrong and I don’t care if you think otherwise

I am a high-earning single mother and I know plenty of high earning women, and that’s why your posts don’t make sense to me.

You seem to lack basic financial knowledge that I would expect someone of your apparent earning capacity to have, which is why I thought the money may have come through someone else.

Trust funds are not ‘basic financial knowledge’. Most people only look them up when they’re setting one up or are affected by one.

You were sneering at a high earning single mum with savings daring to consider private school, at least admit it.

Equally why do you think anyone cares what you think?

But they do

@CheekyHobson I think that may well be the case too- large divorce/inheritance settlement etc-I know very few women including single mums who are earning enough to be able to save at that level over a shortish period and yet be worrying about potentially claiming UC - Most earning at that level would envisage a large pay off if made redundant say, using savings and getting a similar role within 3 months. Something doesn't quite sound right here- call me cynical but maybe it sounds worse instead of saying I worked hard and saved- to say 'I've come into a lot of money and want to hide it'

Realistically how many on here know single mums who have maybe £5k a month off 'earnings' to save

They are basic knowledge for women who have financial capacity.

I’m not sneering at her daring to consider private school. I’m disbelieving that she has made it her only priority over and above basic financial independence at a point in time where she does not actually need to have the entire amount set aside and protected, and that she has such inflexible thinking around “ringfencing” the private school fund if she is in fact a fairly high earner.