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Original poster

Inherited money

73 replies

Mum8515 · 28/06/2018 22:48

I've been given a large amount of money today (20k), it's been given to me from the sale of my grandads house abroad, It's been divided between a few of us & given the amount of 20k each. My question is we get some housing benefit, a little bit of council tax reduction, WTC & CTC. I want this money to be put aside for my 2 little ones preferably a ISA. What happens in regards to benefits? So confused on what to do. Tia x

OP posts:
headinhands · 28/06/2018 22:57

I think anything over £6 in savings is taken into account. But not sure after that? You'd have to read up on the provisos for each benefit you're claiming.

Imchlibob · 28/06/2018 23:14

Has the money been put straight into your account or have you been sent a cheque? Ideally if it's a cheque you want to ask the person distributing the money to remake the cheque as share out between your dc.

If you have over £16,000 then you are ineligible for housing benefit and most other benefits. You would be expected to spend £4000 on making ends meet with the loss of those benefits and then restart benefits once your savings are below £16k.

I don't know what mechanisms there are for detecting this, but if the money came into your account and you subsequently transferred it to your kids you would be seen as deliberately depriving yourself of assets so would also lose benefits and not get them back so easily afterwards, so if it's not too late already you need to avoid the funds being in your possession at any point.

Original poster
Mum8515 · 28/06/2018 23:51

I've received the money in cash, so for now it's at a very close family members in a safe. However this is just a temporary arrangement until I've decided what I want to do. So confused right now. I want it to be a start for my kids, so really don't want it going to waste

OP posts:
Imchlibob · 29/06/2018 00:01

Cash!
You are going to have some difficulty opening accounts for the kids with that. Cash deposits of thousands will ring alarm bells that you might be trying to launder the proceeds of crime.

Nearlyadoctor · 29/06/2018 07:22

So confused...... you declare it like anyone else should. Otherwise you're fraudulently claiming benefits.
I can see exactly where you're coming from op and why you want to put this away for your children but why should the rest of us subsidise your living costs so you can save for the children?
We save every month for Dd and have done since she was born but we pay our own way first and don't expect others to do it. We don't have anywhere near £10000 for her yet ( 11yrs old) it's just what we can afford each month. It would be lovely to have the luxury of someone else helping to pay the mortgage so we could save ... but in the real world...

LuluBellaBlue · 29/06/2018 07:30

Actually I’m pretty sure your children can legally receive the money, put it in their names, their bank accounts. It can also be spent on any outgoings for them (childcare, clubs etc). Just so long as it’s below the minimum earning tax threshold (£11k??) you don’t need to declare it.
This advice was given from Ernst and Young to members of my family that receive a 10k annual family trust / dividend. Adults didn’t need the money and so put it straight into children’s accounts. HTH

ourkidmolly · 29/06/2018 07:33

So your children have £20k savings (which is your money) whilst you're claiming? Don't be ridiculous.

greendale17 · 29/06/2018 07:49

So you want to hide your 20k inheritance so you can continue to fraudulently claim benefits?

Shameful behaviour.

Nearlyadoctor · 29/06/2018 07:56

Lulu the difference is your family didn't need the money and therefore presumably were not claiming benefits so they decided to gift it to the children. Of course the children can legally receive the money, we can all legally gift money to our children and depending on the amount it doesn't need to be declared.
This is not the case here, the op is claiming benefits from the state ( which the rest of us pay for) and wants the luxury of the rest of us paying her living costs whilst she saves the money for the children.
It's fraud !!

mummmy2017 · 29/06/2018 08:05

Pay off every bill you have and get clear of your debts, this means your money will go further, then go and have a lovely holiday, and while it means your cheating the system, the way this world is now 20k is one of the stupid amounts that won't really change your life, but it sure as heck means you get shafted by the government.

Ifailed · 29/06/2018 08:09

shafted by the government Eh? The benefit system is there to help people who would otherwise struggle, someone with £20k in cash is not struggling.

Original poster
Mum8515 · 29/06/2018 08:10

My husband works & our rent is £115 per week and we are entitled to pay £100 per week. Council tax reduction is also a very small amount - total for the year £26! So we are near enough paying our full way! It's something my grandad said to me when he decided to share the property out between his grandkids, me being the only one who was pregnant at the time 'please put this money away for your child so he/she can have a good start' since then I've had a second child. I don't want to commit fraud is why I'm asking! If I have to declare it I will, my family member who has currently got the money is not going to keep it longer than a month as they don't want the responsibility

OP posts:
LIZS · 29/06/2018 08:13

Is grandad still alive? If so although some of the gift may be exempt form tax liability if he does not survive a further 7 years it would be treated as part of his estate for IHT purposes. Not necessarily your issue but it would be traceable. Unless it was specifically left to your dc , and ring-fenced, it needs to be declared to DWP. You could spend it quickly to minimise the impact on your benefits.

Nearlyadoctor · 29/06/2018 08:17

So your saving on rent alone is £15 a week , so over £60 a month. That's more than we manage to save for Dd - both working and paying childcare. Just because your that's what your grandad would have liked doesn't necessarily make it right, I'm sure mine would have wanted me to marry a multimillionaire. Stop sponging and pay your way!

AJPTaylor · 29/06/2018 08:19

open accounts for your dc. ask bank about what proof they need for money laundering ( poss evidence of house sale etc).

Melliegrantfirstlady · 29/06/2018 08:30

Op
Don’t feel bad. I’d be doing the same. This govt has made rents high, council tax plus we pay VAT on nearly everything we buy. Fruit and veg are expensive as is the cost of living. Yet they tell us to eat healthy!

I could go on.......

harryangel · 29/06/2018 08:34

I'm in a similar situation. It seems like MN is full of people who jump at the chance to shame "benefit scroungers". The fact is the 20k isn't going to dramatically change your living circumstances since you want to put it in savings. I say hold on to the cash in a safe or something. As soon as you put it into an account you'll have to declare the interest you earn on it each year for benefits purposes. It's up to you but mumsnet is not the best place for advice on issues like this. :)

harryangel · 29/06/2018 08:39

To be clear you need to check if the money is taxable, and if so you will need to declare it. Otherwise you will only have to declare the interest earnt on it. I'm not sure on the rules if the money is in accounts in your children's names.

LadyFilthPacquet · 29/06/2018 08:39

It would be nice for this money to go to your DC, but the fact is that it's yours, and you will just have to use it. I have been given various bits of money over the years, but it never occurred to me that I could stick it in accounts for the DC and claim benefits while doing so. Instead, I put it towards ordinary living costs. Silly me.

Nearlyadoctor · 29/06/2018 09:11

No Harry it's not going to dramatically change her life but for the rest of us to actually have £20000 as extra money would take years of saving. As a junior dr I work all hours and have sacrificed time with Dd, pay childcare etc, sounds like the op already has the luxury of not working.
I get fed up of 'it's the governments fault' the world owes me a living from entitled people. I see it everyday when they have to wait an extra 10 minutes for tablets they're not even paying for - no consideration for the pt who's cone in from a RTA with their leg hanging off or worse.
The op has chosen to have 2 children therefore as per the rest of us she needs to pay for their day to day living costs not just worry about a nice little nest egg for them whilst the rest of us work are arses off ( pardon the language).

MessySurfaces · 29/06/2018 09:13

Meanwhile, when people post that their bonus is putting them into a higher tax bracket, everyone is queuing up to tell them to put it in a pension to avoid the extra tax... Hmm

OP, you do what you need to do. It being in cash may mean you need to get some paperwork to show where you got it, and if you can put it straight into child ISAa then it will belong to the children not you, and you won't be able to touch it (which sounds ideal in this case).
CTCs don't take savings into account at all, just the interest as income.

MoreAndLess · 29/06/2018 09:33

How on earth did the money end up as cash? Did someone smuggle it into the IK as cash? It seems like an awful lot of money to not be going through the banking system.
Was it in cash to disguise tax etc already?

These threads always have posters on both sides, some saying they would hide it and others saying they would declare it. Ultimately it is up to you but, personally, I would declare it. Otherwise the state will be paying for your kids savings. That's not ok. It's dishonest.

yoyo1234 · 29/06/2018 10:28

If it is an inheritance you have the right to refuse and pass it to someone else ( your children). If it is a gift can you grandad pass it to your children ( I believe it is an inheritance though). If it is ISAs for them it is not yours. Ps please check what I have said ( not a lawyer or accountant). I think it is great what you want to do. Sorry for your loss Flowers.

greendale17 · 29/06/2018 12:18

How on earth did the money end up as cash? Did someone smuggle it into the IK as cash? It seems like an awful lot of money to not be going through the banking system.

^Definitey something dodgy going on.......

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