Child’s savings on UC?

[Marvelfan300]

Can anyone advise my friend has a savers for her little girl (one where she can access if needed.) she recently claimed UC but they said they didn’t want to see statements etc for that account she was speaking to someone today who said she had to declare her daughters savings of £35,000 her daughter is (13) but online says she doesn’t? And the people who were at the job centre said she didn’t need to supply the statement but again she’s not sure and im not on it to advise any advice appreciated

I googled it -
‘Yes, you can absolutely save both Child Benefit and Child Maintenance (formerly handled by the CSA, now the Child Maintenance Service) for your child's future. 1, 2, 3, 4]
Since these funds are paid directly to you to cover a child's living costs, the government places no restrictions on how you manage them.’

ontop of for the last time, she worked full time she was entitled to save what she wanted she didn’t fall under the UC restrictions until recent bereavement

Actually cms according to the citizens advice website is the child's money paid to the parent who then has discretion over how much is spent and on what on behalf of the child as they are a minor. So can be saved all or in part as long as the child is the beneficiary of the money overall. Which they would be given that the money is saved into an account in their name.

As there is £35K at play might be best to register a trust, the money then belongs to the trustees (one of which can be her) and a date set for the trust to pay out, say on turning 18 or 21.

That way the money no longer belongs to your friend or the daughter, but to the trust, which is a separate entity.

The trust can make payments for the daughters benefit early if required.

So she gives up work to care for her ill Dad and you are saying this. You utter misery.
Maybe she's saving your precious taxes that you only want spending on youself by caring for her Dad rather than the state caring for him?
I am wondering where your apology is to the OP is for questioning her friend's morals now she has revealed the miserly amount of child maintenance she actually gets?

To add to my previous comment, as the current arrangement gives Sarah access I doubt UC would disregard it, and if they did I would imagine they would want to see where the money came from, for example a legacy or gift, made to the daughter, rather than Sarah.

Indeed, I cared for my dad through dementia, only handing over to the state for the last two weeks of his life, when the NHS took over.

I never even claimed anything, but CMS payments wouldn't even scratch the side of what the burden would be to the tax payer - Sarah also did the right thing morally by her dad - good for her!

That’s incorrect. Access is irrelevant. What is relevant is who is the beneficial owner of the money.

That's the point I was making, proof my be asked for to demonstrate that beneficial ownership.

Proof was given, in which they stated they did not care for the child’s account but like Sarah is worried with them disgarding the evidence she’d like them to atleast look or be aware before taking anything under any false pretentious

Madness isn't it.

Hardly impacting someone who has £4.50 CSA? She’d not even live off of that whether UC helped or not — I’d stop projecting hatred towards genuine people and look at people who are faking it or lying when she’s just trying to be honest

CSA is for the benefit of the child, so putting it in an account for the child is hardly depriving the child - its parents who spend CSA in themselves who you should be irked at.

More complicated then that.

Question is who is beneficially entitled to the money.

Agreed

So after reading all this it seems we can all just bash savings into our kids account, that we can access at any time, and bypass the universal savings threshold. The worlds gone mad

How has she managed to save £35k for her kid?

Update for you all - UC have said all is fine they have checked the evidence for the child’s account and suggested her moving it going forward into a JISA but they have no concerns over anything and they can see who’s paid in and the references and her claim should be completed soon thanks all☺️

Excellent news, common sense prevails!

Not difficult if she was working full time until circumstances changed, saved CMS payments, maybe the child had a legacy or gift made - can soon add up.

Well, now you know what to do everyone. Transfer all your savings to your kids and claim benefits.
I think the UK has zero chance of remaining one of the richer countries of the world whilst we continue to give so much out in benefits. Forget about state pensions for your kids, there won’t be the money for it.

if UC didn’t exist, there is no way, none at all, that any parent would have >6k savings themselves whilst their young dd had £35k

Thank you for your time ☺️

@arethereanyleftatall
How much do you think the state will be paying for care for Sarah's father who has Parkinson's Disease if Sarah had not given up work to provide that care? A hell of a lot more than she will be able to claim on UC that is for sure.

Indeed. My responses are more towards the general principle that one can transfer their savings in to an accessible to them child’s account, to get under the 6k threshold.

Actually for th average working person it is very hard.

You can't.

DWP know the dodges like that and will immediately see if there are frequent transfers from child to parent and vv.

The UC process looks at who has (a) legal and (b) beneficial interest in cash held for kids (or other 3rd parties). Only if (b) can be clearly shown to be vested in somebody not the claimant can the capital be disrgarded.