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Original poster

Help me not commit benefit fraud

32 replies

moneyhelp101 · 11/04/2021 20:34

Long story short:

My dd17 (and ds as well) was born with a genetic condition which impacts on her mobility and causes chronic pain. When she was born I did research into her condition and discovered that in adulthood there is limited NHS help but good options privately that can greatly improve quality of life and pain levels. Because of that I decided to put £100 per month of her DLA into her child trust fund so that the money would be there when she was adult.

Dd turns 18 soon and is due to receive the money into her account. I am on legacy benefits as ds 10 also has the condition but more complicated so needs a full time carer. I also get housing benefit and child tax credits. I did not intend another child so did not forsee myself on benefits, that will now be affected due to dd's savings. She is due to go to uni next year and will move out, but that means for 12 months she will have savings of £25k ish whilst living at home. I'm terrified that DWP will stop my benefits and make me use dd's money, which feels very unfair to her.

Does anyone know any way around this? I don't want to commit fraud obviously so I mean if there is a legal way that dd could invest this money so that it would not be classed as savings. She is looking into surgery which will cost £12k approx but that won't be until she has completely stopped growing at 21.

OP posts:
Aprilshowersandhail · 11/04/2021 20:43

Your dd's trust fund money isn't yours. It's your dd's money to access at 18. Legally you can't access the money. Benefits can't change that.

Original poster
moneyhelp101 · 11/04/2021 20:48

Yes April that is correct which is why it hasn't been an issue until now. However, it is my understanding that once she gets hold of the money it will then be classed as savings, and it seems children's savings will affect the parents benefit entitlement. I'm not sure whether DWP would be told about the money or not, but I don't want to take the risk of being fraudulent either. She will still be living at home for one year after receiving the money.

OP posts:
NoSquirrels · 11/04/2021 20:50

Your DD’s money that is legally hers as an adult shouldn’t impact the benefits you receive. Her turning 18 presumably is the issue because the DLA will be paid to her, not you as her carer - is that correct? And so her savings will affect her entitlement to benefits.

I don’t think there’s any way round that. You saved money for her adulthood, and at 18 she is an adult.

If she has £25K and surgery in a few years will cost half that amount, then she will still have sufficient funds even if 12 months of benefits being reduced means you/she need to spend some of it.

Is there a reason she’s not going to university at 18 but waiting a year instead?

NoSquirrels · 11/04/2021 21:00

This looks comprehensive but no mention of savings for an over-18. Perhaps they run a helpline?

contact.org.uk/help-for-families/information-advice-services/benefits-financial-help/benefits-and-tax-credits/benefits-at-16/

Original poster
moneyhelp101 · 11/04/2021 21:02

Squirrels the way her birthday falls means she will not leave full time education (school) until she is 19, so will remain on my claim until she leaves school. She will not be applying for benefits (and her DLA isn't means tested) so she isn't the issue, it is me I am worried about.

OP posts:
Original poster
moneyhelp101 · 11/04/2021 21:07

I'm very worried about my benefits being stopped as my rent is high due to needing a downstairs bathroom. I would need at least to take £12k from dd's money for one year (if my benefits were stopped) which would limit her initial post op options.

OP posts:
Original poster
moneyhelp101 · 11/04/2021 21:08

Thank you Squirel, will check that out.

OP posts:
mumwon · 11/04/2021 21:56

if she is 18 wont she have to change to PIP? She will need to be assessed & you will need to fill in form -
Get advice on this - CAB or a charity (especially a charity relevant to her disability)
Take your time filling in form - fill in EVERY question - you may find yourself repeating answers, send in copies of all paperwork & refer to it when you write answers Give examples of issues
But it isn't affected by her savings -if you do have to go through this put another question up & everybody can give you some advice

Original poster
moneyhelp101 · 11/04/2021 22:05

mumwon she moved to PIP at 16. Just to reiterate the problem is regarding MY benefits, not dd's.

OP posts:
NoSquirrels · 11/04/2021 22:22

I think you should get advice from CAB or a charity directly related to your DC’s issues, because it seems complex.

She’s not a child at 18, she’s an adult so in that sense her savings shouldn’t affect your benefits unless it was somehow possible to claim she was your partner - but she’s not, she’s still a dependant so despite being an adult I guess they could claim she’s a child...

It seems a bit circular and so you need really good advice from an official who has seen this situation before, because it doesn’t seem yours is a a situation covered by most of the online advice.

mumwon · 11/04/2021 23:18

sorry op missed that I thought I read DLA earlier

mumwon · 11/04/2021 23:19

You did mention DLA?

Original poster
moneyhelp101 · 11/04/2021 23:27

Yes she received DLA up until the age of 16, then it became PIP.

OP posts:
dane8 · 11/04/2021 23:30

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

Viviennemary · 11/04/2021 23:34

My take is this. An under 18 child's savings are taken into account when calculating the parents benefits. Once your child is over 18 her savings won't affect your benefits. They will affect benefits your DD claims in her own right.

Original poster
moneyhelp101 · 11/04/2021 23:51

IIRC the last time I filled in an income support form it asked if any dependant children had savings over £6k. I might be imagining that though!
I will have to contact CAB just to be sure, but it would be great if you are right Viviennemary.

OP posts:
Hadalifeonce · 11/04/2021 23:57

OP, it isn't your money, it is your daughter's. It cannot affect your finances.
Your daughter will be an adult when she receives the money, so cannot be attached to your finances in any way.

UpTheLaganInABubble · 12/04/2021 00:13

As far as I know, nothing will change while your dd is in full time education, even though she's 18. If she is going to university straight from A-Levels, then nothing will change until that September. Then any benefits you receive for her as a dependant will be stopped eg child tax credit, child benefit. But I think the only thing her savings account will affect then is her own entitlement to benefits, which won't be relevant if she goes to uni

LonginesPrime · 12/04/2021 00:39

IIRC the last time I filled in an income support form it asked if any dependant children had savings over £6k

But when she turns 18, wouldn't she be a dependent adult?

Even if you're still her carer, it seems a bit odd that another adult's savings would be taken into account for your UC claim. That just doesn't sound right to me.

winterchill100 · 12/04/2021 01:02

I would invest the money right now into bitcoin or Ethereum and withdraw the money out as and when needed. Do your own research of course.

Gingerkittykat · 12/04/2021 01:23

Her savings should not affect your benefits but phone CAB to make 100% certain.

HelpMeTony · 12/04/2021 08:11

I was in a pretty similar position, and one thing I considered (although didnt fully follow through with this plan so no idea if it is actually possible....)

When DD turns 18 she will still be in education so still classed as a dependent on yours, therefore her finances may impact on your benefits. Although she wouldnt be able to claim benefits in her own right whilst still at school (I think), would it be possible to simply remove her from your claim? I know that means your benefits would be hugely reduced for a year until she finishes education and is able to claim in her own right, but that may mean your benefits remain the same? I guess the CAB would be best placed to advise, and you would need to way up how much your would lose etc.

I wish you well, sometimes being a full time carer dependent on benefits feels nothing more than a trap financially wise Sad

HelpMeTony · 12/04/2021 08:12

to clarify, not that your benefits would remain the same if you removed DD, but rather your entitlement to claim would remain the same.

Babyroobs · 12/04/2021 10:37

Her savings won't affect your claims. If she were to want to claim UC herself then she would not be able to with savings over 16k. If she is going to be studying and only receives mobility component of PIP then I don't think she could claim UC as a student but would need to check on this.

Original poster
moneyhelp101 · 12/04/2021 11:54

Thank you for all of the replies. Dd won't be claiming benefits after she finishes school, so that won't be an issue.
I thought about removing her from my claim at 18 but again that would be fraud as she would still be living here for one more year and housing benefits etc would want to know where she had gone. I also think for student finance purposes she needs to be a dependant on me?
Tony I feel really stupid for trying to save money to help out DD and she could actually be penalised for it.
If I thought she could immediately invest the money (and therefore have no monetary savings) in crypto currency or something like that I would do it in order to protect it for her.

OP posts:
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