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.

Of course it is

otherwise we’d all get it.

Seriously OP, unless your child is SEN absolutely no need to put him in private school before secondary. That is what all my son's teachers have done with their children and I did the same.

For funds held in a trust to be disregarded for benefit purposes, they have to be in a discretionary trust where trustees decide on who gets help and what the money can be used for.

I think that any trust that had as its main or sole purpose the payment of school fees for a specific, named child might not be regarded as truly discretionary.

You can afford to save enough money to send your kid to private school, of course you’re wealthy. You’re either being disingenuous with this statement or you have no idea how the other half live which is probably why you keep coming back to the daily mail tropes about expensive TVs and cars in relation to people on universal credit.

I don’t care whether you asked for opinions or not, you’re going to get mine. Just because your kid is going to private school and you can afford to squirrel away money in trust funds to hide it from the government, morally that makes you no less of a benefits cheat than people who fake illness for PIP in my opinion.

This.

Exactly!

This is what I found unbelievable too. A few years ago when I was on £15k full time wage I lost my job and found out I couldn't claim anything because I had been so frugal and put £10k aside over the years partly to be sensible and in the hope of one day using it for a house deposit or a car if a new job ever needed.

I was literally penalised for having savings while people who had been earning more but spent it were entitled to UC.

Agreed

I think the OPs point is that it's not irrelevant.

If she bought 100k of jewellery or a prestige car, that would be fine.

If she's saving for education that's not.

Im not sure what you mean about the house deposit but, they do make a short term allowance for a deposit for a house.

YOu could set up an Educational Trust Fund
Secret Tax Benefits of an Education Trust Fund - MoneyMagpie

I know FIL did one years ago for one of his granddaughters
I know nothing about them though

Yes. Spot on. It’s abhorrent

I was actually just thinking about your mortgage.

Are you the one who was on a while ago agonising about how your single parent self is setting your toddler up for a life of irreversible penury by having a perfectly normal sized ginormous mortgage?

If not, others share your fears.

She’d have to pay tax on this. The government would then know about it. Then they’d know about it if she asks for UC

Private education is a luxury, of course it is.

Why on earth would you not just put that money towards your mortgage which would be a much better way to protect your assets if you lose your job?

That’s the second post where you talk as if children won’t get an education unless their parents pay for one. I’m sure you know really that that is not the case. Education in state schools is free.

Hi @Jaalp,

I think that what you are proposing is benefit fraud and you are proposing it on a public form. I'm not sure that that is really a good idea.

Just move near decent schools

There are some out there

Giving money away in order to maximise benefit entitlement is exactly what the deprivation of capital rules are there to prevent.

OP this is no different to trying to hide money away for any other luxury. Your are intentionally trying to play the system using the guise of education to justify it. But this is no different to wanting to hide money to pay for holidays, cars or home improvements whilst expecting the tax payer to give you money.

You should be ashamed.

I really don't know what gave you that impression.

Not when it’s invested in an education trust fund.

Education trust funds are separate to the rest of your estate and are liable for Capital Gains Tax.

OP would not be doing anything illegal.

Having your child in an independent school won't be much comfort if your house is repossessed and you're stood in the queue at the Foodbank because you've either been sanctioned for attempting to hide money - or it's actually put in a place where you can't access it and UC alone doesn't cover your mortgage and bills (or the contracted fees if you only get offered temporary accommodation 260 miles away).

But ironically if she spent all the private school savings on holidays, cars and home improvements THEN lost her job she would be fully entitled to tax payers’ money.. 🤷🏻‍♀️

Your UC entitlement must have been very low for £10k to reduce it to zero.

The first £6k is disregarded and tariff income on the rest is only £4.35 a month for each £250.

Protecting your child's school fees is playing the system. If you lose your job, you want to hide your savings so that you can claim Universal Credit. How would this not be benefit fraud?