Children's inheritance/housing benefit

[totallystumped]

My Children's paternal grandparents both died last year, according to their grandfather's will (which I haven't seen) they get 5% of the estate, split between the 2 of them, this will give them in the region of 8K each. The money is supposed to go to them, intact, when they reach 18.

The solicitor is almost at the stage of paying over the money, no one is interested in being a trustee for the children so he wants to pay it to me to put in accounts for them.

I am a single mum, working but claiming housing benefit and getting child tax credit and working tax credit. I'm under the impression that I'd have to tell everyone and that some/all of my benefits would stop untill the kids money was used up to below a certain level.

Both the children would like to go on to further education and I'd like them to get the money at 18 to help them a little - this would seem to have been their grandparents' intention. Is there anyway to stop it from being swallowed up just on daily living?

Thank you for any help/advice.

Will the solicitor act as trustee?

The solicitor is terminally ill and is unlikely to last the 4 years until DS reaches 18 (possibly not even the 2 until DD does)

In that case I would take them on a few holidays, if things are that tight the authorities can't begrudge their money being spent on them.

Three thousand should sort them for books, rent in advance etc at uni for a while.

Holidays especially if you say do some great European two week cruise followed by a beach holiday can be full of fun and culture, all good for growing brains.

I think that counts a "deprivation of something or other and isn't allowed either, but I really would like them to get it at 18 which is what the gps wanted - I'm not going to be able to help them out much and they are unlikely to see any of the cash their father got.

If it's their money in trust then it can't be touched until they are 18 anyway, i think.
It will have no bearing on the benefit you receive as it's not really available to be used yet and is your dc.

Could you get another Solicitor/Trustee?

Put it in a trust fund yourself. Easily done. Don't leave it sitting in your account as the tories are hot on this sort of thing!

Can the money not be paid directly into ISAs in the children's names? It would then be impossible for them to withdrawn it before 18. I have my son's ISA, my name is on the account, but it is his money, and I cannot access it

Could it go into a long term savings or investment bond?

Xpost with several others! Yes an ISA is what i had in mind but couldnt think of the word

NewLife can I do that myself or does it need more than one person?

I think ISAs have to be declared too.

Agree with what NewLife4me and VulcanWoman said. What are your solicitor's business continuity plans? Who is he passing ongoing business on to when he can no longer fulfil it? Professionals like solicitors and accountants need to make back-up plans for their clients' interests should anything happen to them. If this solicitor can't/won't do it, find another... please don't blow the money on holidays for them if they have hopes of FE.

x-posted with others
It's your DCs money not yours, so I shouldn't think it would affect your benefits at all - but speak to a solicitor or independent financial adviser to be sure that this money is protected for your DCs. They should offer an initial consultation free of charge and let you know what they can do for you and how much it would cost you etc upfront, so there's no outlay in getting some initial advice.

I'd want to see a copy of the wills and I'd call up and ask.

Can the money not be paid straight into an account in their name? Thereby not touching your account at all.

You need to double check the will. I think you may be asked to prove it is the kids money but that should be straight forward if it's in the wills.

If it was just your DF 'intention, that the money went to the kids but it wasn't actually written in the will then it's your money and you can't give it away or spend it without risking being accused of deprivation of assets.

I'm not 100% sure as not a legal person but have heard this is how it is done.
I believe you put it into an account where the dc can't touch it until 18.
Not sure if it has to be a special account or any with a proviso of no access until 18.
I'm sure there are some legal bods on here who could help.
You do need to see a copy of the will because I do know that the executor has to make sure everything is done as stated.
So if it states in trust, this is what has to be done.
Hope this helps a bit.

It is definitely the children's money, not mine and the solicitor says it is supposed to go to them, intact, when they are 18. I'll ask him on Monday to send me a copy of the will. It's unfortunate that I'm taking the kids to see my parents next week so we'll be away till Thurs, but hopefully I'll be able to fit in seeing a bank/building society on Fri.

Intact, obviously means all of the money at once, not in dribs and drabs.
Which ime is far better anyway as they'll get a lump sum.
If an ISA is a possibility I'd go for this, but not sure if you'd be allowed a stocks and shares ISA as the money can go down as well as up, so you could end up with less than you put in and then it wouldn't be the full amount intact iyswim.
Definitely ask your solicitor.
Good luck

My DF pays money into ISA's for my DC. Has done since they were born. The ISA's are in their names and can't be touched until they are 18/21 (can't remember which!).
I am named on the accounts as the guardian/parent until that time.

As the money is not mine and can't be accessed it didn't have any bearing on the HB, CTC, WTC, CTS or IS I received before DP moved in in July.

I asked HB about it at the start of my claim and they weren't interested once I showed that the ISA was inaccessible unless the child either turned of age or died.

I would call your HB office and ask outright as they are the only ones who can really answer your question.

Just get cheques written to each of the children, then go along to any bank and open an 'in re' savings account in their name with you as named trustee. It's very simple and the accounts will be in their names not yours so no queries over benefits.

Op I think you need to check with the solicitor whether he can actually hand out the money to anyone other than your children when they turn 18?

My children (age 17 & 15) are beneficiaries in the will of my cousin who died at the beginning of the year (and the only ones under 18). The first payment was made in July, however the solicitor who is the executor rang and told me that, since no one can inherit until they are 18, my childrens portions were going into an NS&I executor account and would be requested out just before their 18th birthdays. There was no talk of the money being handed out to me to invest or 'look after' for them, not that I would have wanted that.

So if your children are expressly named in the will, I would imagine this limitation will apply to them too?

Our next problem is where to invest the quite large amount that DS will receive on his 18th birthday in 4 weeks time - but a nice problem to have! Fortunately he is very much a saver not a spender and knows he will need the money in the future, so has no intention of frittering it away!