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.

So you think the responses on the thread would have been more supportive if it was a parent in a couple asking the same question?

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'

@Crikeyalmighty Exactly what I think. The story and presumed numbers do not add up.

Sheer arrogance. Your views are not that interesting.

Yes, and if the time comes that ever they look, they will see that OP established it when financially secure and without anticipating a UC claim. Hence it being highly unlikely to be considered deprivation of assets. OP isn’t planning to claim UC (and she is taking other steps to secure herself financially), but it considering how to least disrupt her daughter’s education in the even of the worst occurring.

The rule change just encouraged the establishment of trusts in advance, rather than as something to be done immediately before claiming public funding.

A trust is very much an option for OP.

Is this a wind up?

Benefit fraud is benefit fraud. I have some sympathy with those who cant afford to feed their kids so do a bit of cash in hand here and there but private school fees? Absoute piss take.

@Willyoujustbequiet asking for a legal way to save money for your child isn’t fraud. As many posters have said.

@CheekyHobson also if there that much in the pot- the interest would partly cover off fees whilst looking for a new job -

It's the mindset. A moral compass missing a chip.

Benefits claimants are castigated on here. Some of the most vulnerable people in society living in abject poverty. Yet here we have a prospective private school parent openly asking for ideas to help them play the system. Appalling.

”Stop playing the system by its own rules! And stop having a moral compass that doesn’t match mine!”

She’s not looking to play the system, and she has no plans to claim UC. She’s making a perfectly legal contingency plan to make sure her daughter’s education isn’t disrupted in the event of a worse case scenario.

Rubbish.

If she had no plans she wouldn't have posted and asked. Pull the other one it has bells on.

You aren't just asking for a legal way to save money for your child. You are asking for a legal way for you to keep £200,000 without it affecting your eligibility for Universal Credit.

Apparently there is a legal way to do this like there are many legal ways for the rich to avoid paying taxes, but many posters, including myself, believe that this is morally indefensible.

Ah yes, because you are of course a better source on OP than OP herself is.

It’s a very normal for those with assets to make contingency plans such as this, and not indicative of her having any plans to access government funding.

As if they to justify themselves to you or morally defend it. Your moral opinion is just that - your opinion, it has no bearing on what OP is legally entitled to do, or indeed her own opinions regarding morality.

If it walks like a duck and quacks like a duck...

The vast majority would appear to agree.

And what’s the contingency plan for unexpected job loss?

Who cares what the vast majority on this thread think? They don’t know OP or have superior insight any more than you do 😂

What it walks, talks and quacks like is someone with assets looking at wealth management. Again, very normal. My parents did the same, as did the parents of lots of people I knew and know. As far as I am aware, none ever went on to claim benefits, funnily enough.

You’d have to ask OP. She alluded to having more than one plan for financial security, but given that this thread isn’t about that she didn’t need to go into detail.

And neither do you.

But that irony appears to be beyond you 😂

Again, for the hard of hearing... the OP doesn't know when she might need to make a claim.. 6months after setting up TF or 12 years... you simply do not know this...

From Gov.uk...
Reducing your money, savings and investments on purpose
"If you knowingly reduce your money, savings and investments, or transfer them elsewhere to get or increase your Universal Credit, this is known as ‘deprivation of capital’.
You have not knowingly reduced your money, savings and investments if it has been used to:

• pay off or reduce a debt
• pay for goods and services that were reasonable in your circumstances

If we decide you’ve deliberately reduced your money, savings or investments, your Universal Credit is based on you still having it. This is called ‘notional capital’"

Reasonable in her circumstances? why would anyone put all their savings current and future into a trust if not to reduce capital?

It'll be up to the DWP and they will will not be generous.

I don’t think this thread would exist if she had a contingency plan for unexpected job loss 😂

She may have £200k in savings for school fees but is a long way from being financially responsible it seems.

Yes, because going on what OP has actually said is no different to making something else up entirely.

1 in 5 adults in the UK had a private education as a child. Of those who had private education, 37.94% believe it resulted in a better career. 44.72% of former private school attendees believe their career outcome was no different as a result of their private education. OP I would consider whether (as a single income household) private education should be a priority vs paying off your mortgage early and building a fund for your child to set off in life with house,car etc.

Financial advisors are not experts on the benefit system. Professionally, I’ve noticed they’re not experts on the social care system either. I have seen a number of discretionary trusts set up to protect assets from being included in means tested social care but they’re not valid.

@Jaalp will have to declare the trust. It will be obvious what she has done. You cannot dump £200k in an account for a child and pretend you didn’t gift it to them. The DWP aren’t stupid. OP, you need to get some financial advice on the best way to make plans for your money.

Hard of reading, surely?

No, she doesn’t know if she’ll ever need to make a claim, and doesn’t anticipate doing so. That’s why, in a time of financial security, she’s planning ahead in case there comes a time that she’ll need to.

If she continues as she is, and she has no reason to believe that it’s unlikely that she will, then she’ll be fine, and should there come a time when she needs to claim UC, it’s very unlikely that her earlier actions would be considered deprivation of assets.

...but its not "Earlier actions" OP is a high earner, to keep her savings well below the TH's she'll need to be putting savings into her childs trust fund, very likely, that over time, this will exceed any school fees, whilst at the same time, making sure she has no money for contingencies, such as ill health, property mtce .... etc etc.

Tbh the whole op seems very questionable and designed to get a reaction, which i suppose she has achieved.