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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:

OddBoots · 05/02/2019 19:33

If you will be taking it back again as their guardian then it isn't your children's money and pretending it is would be fraud so you could have far more trouble than just not getting full benefits.

Nonibaloni · 05/02/2019 19:42

Thread hijack coming. I asked about this before because a family member who doesn’t live with us has a saving account in the name of my Ds , has done since he was under a year. It has 10’s of thousands in it. The account was opened with a birth certificate. They don’t pay tax on this money so is that not the same?

Original poster

Staycalmandscream · 05/02/2019 19:44

I've done some casual work at a local school in the past. Literally a few hours a day for a week or so every few months, barely more than minimum wage. At the time I was advised not to add it until I'd finished my first week then it was left logged at e.g. working 2 or 3 hours per week so that it wouldn't trigger a change in circumstances every few months. The idea bejng at the end of the financial year the cumulative hours would be roughly equal to my working hours so I've not been overpaid. I overestimated the rolling hours I'd work so I wouldn't find myself being paid too much. To people who work in benefits, is that ok? It was discussed with the person on the phone so above board in my mind as I'm estimating a greater income than I'm likely to get (which is no more than 1k per yr, just keeps my hand in for when I'm ready to get a regular job) but I don't want to be in trouble for not reporting a change of circumstances every few months. How fussy are they? As I say it's just for ease it was set up like this so at the end of year my hrs worked / money earned with balance with estimate so I've not been overpaid. I know I'm getting off topic now but a couple of things said have raised it in my mind. Being paid 1k a yr isn't worth losing ctc if I had to get moved onto UC due to constant change of circumstances being logged.

OP posts:

Graphista · 05/02/2019 19:47

What you're proposing is benefit fraud. Mainly due to deprivation of capital.

I think you need legal advice regarding the state of your home. And benefits advice grim someone who knows the rules inside out. Personally I've found the welfare rights office at the council have been best on this.

MoveOnTheCards · 05/02/2019 20:01

You say you don’t have a mortgage to pay, does that mean you own your home? Does that even count as an asset that would be considered contrary to needing help?

Babyroobs · 05/02/2019 20:02

Nonibaloni - If your relative is hiding money under your childs name in order to continue to claim benefits which they would not otherwise be entitled to then yes clearly this is fraud.

Woohoo1 · 05/02/2019 20:04

Could you buy an expensive painting that will hold its value!?

AnotherEmma · 05/02/2019 20:08

@Woohoo1
NO 🙄

Move
Equity in property you are living in as your main home doesn't count as assets/savings for means tested benefits

PCohle · 05/02/2019 20:15

OP it's the very fact that you can so easily access the money that means it is treated as yours for the purposes of UC - because in effect it is.

You would need to properly tie up the money in a trust in favour of the children that you couldn't access. And even then you've probably still be viewed as deliberately divesting assets in order to claim benefits. Which is tbh completely accurate.

Original poster

Staycalmandscream · 05/02/2019 20:16

woo years ago my ex wanted to invest in an original by a great living artist, convinced that on their death the value would rocket. His artist of choice was... Rolf Harris. It's put me off dabbling in that direction! Too risky for my liking!

OP posts:

Isleepinahedgefund · 05/02/2019 20:25

There is a difference between accruing savings for the child since they were young (thread hijacking poster mentioned that)) and putting the excess savings into accounts in the kid's names for the purpose of circumventing the benefit rules on capital. One is saving for your kids, the other is fraud.

When I processed benefits I came across this quite a few times and each time the claimant was treated as having the capital and denied benefits. It's a pretty blatant play to keep your money and claim benefits, regardless of what's going on in your life.

The only way it could be plausible would be to put it in accounts the kids can't touch until they are 18. Even then you'd probably be treated as it you still had the notional capital for a period.

Best thing to do is get your house done ASAP!

blue25 · 05/02/2019 20:32

But you have got a safety net-you've got over 16k in savings!

I'm sure every person in your position with savings will claim the money is saved for a reason. However, if you're not working, can't eat etc. you use your savings!

Allycat · 05/02/2019 20:50

If you have a mortgage can you not make a part redemption so that you have less than £16k savings and then apply to borrow it again when it's time to do the building works?
Or maybe an offset mortgage could work, where your mortgage and savings offset each other???? L

Original poster

Staycalmandscream · 05/02/2019 21:27

Alkycat no mortgage. Prioritied paying it off during my working years & annual bonuses etc. So glad I did now that I'm in the position I am in. At least that's one worry I don't have.

OP posts:

friendlyflicka · 05/02/2019 21:42

You do need to just carry on as you are. I understand the position you are in. You are not making a new claim and so will just continue as you are for the time being

watsmyname · 05/02/2019 21:45

I think you know what you are suggesting is wrong (which is why you have given the backstory). If you read this thread without the backstory - how would you respond?

I understand you're in difficult circumstances but what you are suggesting is fraud and wrong.

MyKingdomForBrie · 05/02/2019 21:48

I think your problem has been solved though - don't trigger a change in circs and get on with the repairs!

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