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Original poster

Will DDs money count as mine?

42 replies

Staycalmandscream · 05/02/2019 16:20

Not looking for moral judgement on this.

L.P. with no help / safety net. On full CTC as I don't work at present. Recently realised if I get moved to UC we'll get nothing as I have savings over 16k. This money is not "available" though, it is needed to finish a building project which has had to go on hold for various reasons. We currently live in a brick walled leaky house ie not finishing when able is not an option. However if I get put on UC we will be expected to live on this money & I will have no hope of sorting out our house (no credit etc).

So my question is this. I need to get my savings down without spending until I am in a position to resume the work. Am I allowed to gift ££ to my children, and therefore not declare it as mine? Is there a max limit allowed to gift where it can then be considered spent? And come the building work resuming can I use the money from my kids accounts that I moved over to pay for works in their home? I need to protect the financial vulnerability of my family.

Thanks in advance.

OP posts:
Todaythiscouldbe · 05/02/2019 16:24

Oh dear. I imagine this won't go well.

I thought you had to declare savings over 6k on tax credits anyway so what is the position at the moment? Are they happy you have over 16k in savings whilst claiming?

I'm sure one of the more knowledgeable posters will know if this is possible, but, my personal opinion is that I really hope not.

IMissGin · 05/02/2019 16:25

Can you pay for the work in advance? Putting in your kids names would be deprivation of assets I would think

TulipsInbloom1 · 05/02/2019 16:29

Is there anyway of getting the works done as soon as possible before needing to claim?

Bufferingkisses · 05/02/2019 16:46

I understand that, even if you spent it for its intended purpose, they can get difficult as they say it should have been used to support you. Sadly I'm not certain of the actual rules though and I get the impression from accounts I have read that the rules are not always applied equally.

I would suggest that you do some serious research before you do anything.

ajandjjmum · 05/02/2019 16:50

Get the house sorted as a matter of urgency?

EhlanaOfElenia · 05/02/2019 16:52

Can you just take it out of the account in increments and keep it as cash?

ChrisjenAvasarala · 05/02/2019 16:53

Would the builder accept cash payments when you do go ahead with the work? Start withdrawing it at around £100 a month; no one would question that being spent on extra groceries etc. Buy a safe and keep it at home.

friendlyflicka · 05/02/2019 16:54

All family money is counted

PCohle · 05/02/2019 16:56

Transferring ownership of property is classed as deprivation of assets so the amount may be treated as notional capital for the purposes of UC.

Whether or not spending the money on your house counts as depreciation of capital depends on whether the expenditure was reasonable in the circumstances of your case.

In addition if you transfer the property to your children it is unlikely you will be able to get it back to spend on the house until they are 18 (and even then your children will be able to refuse to return the money).

Aprilshowersarecomingsoon · 05/02/2019 16:57

My exh is currently being investigated for fraud for stashing cash in dc's accounts...
Just saying...

neddle · 05/02/2019 17:01

What about if it were savings for repaying a mortgage?

friendlyflicka · 05/02/2019 17:19

If it was to repay a mortgage still not admissible.

Babyroobs · 05/02/2019 17:19

If the dwp migrate you across rather than you going onto UC because of a change in circumstances then I think savings over 16k will be protected. It will only be if you have to go over to Uc in the near future that there will be a problem.

Original poster
Staycalmandscream · 05/02/2019 18:22

No mortgage to pay off. House cold & damp. Undergoing structural investigations due to cr*p builders. Issues around the new freeholder giving permission for the works. Can't pick up the work quickly as there are loads of complications (plus external things like my mum having dementia which are pulling me in other ways & short of not sleeping I haven't time to see to everythjng as urgently as I'd like).

I just want to know at the very least can I gift anything to my kids without it being classed as mine. Surely that it possible. What's the deal with the 3k per year a parent can gift their child tax free, is that an option?

OP posts:
Babyroobs · 05/02/2019 18:33

The thing is if you gift the children money you are unlikely to be able to have access to the money again when you need it for the building works / repairs surely ??

Dox · 05/02/2019 18:37

The 3k a year is a tax rule. Nothing to do with means tested benefits.

ChrisjenAvasarala · 05/02/2019 18:37

With child tax credits, you need to declare if your children have over £3000 so no, it won't work. That's been answered here already.

AnotherEmma · 05/02/2019 18:40

For the love of God no.
I am a benefits adviser and no you cannot do this.
Are you claiming income support at the moment? Do you have any reason to believe you will have to stop claiming income support and CTC and start claiming Universal Credit instead?
It could be a while before you have to migrate. Make sure you get the work done on the house before then.
But for God's sake don't commit fraud.

WhoWants2Know · 05/02/2019 18:41

Like a previous poster mentioned, if it's a gift to your kids then you can't necessarily get the money back until they're 18 and willing to give it back.

Hwory · 05/02/2019 18:48

If you purposely deprive yourself of capital in order to claim benefits you will be treated as still having that capital.

reallybadidea · 05/02/2019 19:00

Migration has been delayed again and once you are migrated then savings above 16k will be disregarded for the first 12 months revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/

However afaik you will be assessed on the first 16k, plus any spending would likely be seen as deprivation of assets.

I think your best bet is to get the repairs done ASAP. You won't be able to give it away and then take it back again unfortunately.

With child tax credits, you need to declare if your children have over £3000

That's not true.

Original poster
Staycalmandscream · 05/02/2019 19:10

I don't get income support or any other benefit apart from ctc and child benefit as I'm not eligible. Have declared all money when asked for. Not looking to commit fraud obviously but in some areas things become grey and if there is any way to protect a buffer for myself & my children then I would like to. When I worked I was well paid & I paid taxes like everyone else. Now as a LP with a sick mum & health concerns myself, the goalposts are in a very different position & I'm on the other side of the fence. I'd like to believe it won't continue forever and I'll be working again ; paying back into the system in future yrs. Ironically with a damp house and stressful living conditions that's less likely ie if I loose the money to sort our house getting back to work seems less feasible. With a functioning house it's easier to take new challenges on. At present living here is a huge challenge & it's the limit of what I can cope with. I am progressing things as fast as I can but it's not easy with no back up & no one to talk things over with. Let alone the other demands of kids & an ill parent which usually need dealing with promptly not delayed. Every time I pick up the project another crisis or obligation elsewhere seems to present itself.
Anyway with respect to the money gufted to my kids... I am the guardian of their savings so assumed I could just take it out again when needed. There us definitely no waiting until 18 years old (not an isa)

OP posts:
AnotherEmma · 05/02/2019 19:17

Oh yes of course you're not eligible for IS as you have more than £16k savings.

It's not a grey area at all. You can't give away or hide your savings in order to qualify for benefits! That's so obviously wrong!

AnotherEmma · 05/02/2019 19:18

It's a pointless debate anyway as you don't even need to claim universal credit - you can just carry on claiming CTC.

Babyroobs · 05/02/2019 19:28

Exactly as previously said - if you don't have a relevant change of circumstances it could be years before you need to switch to Uc .