Have I seriously messed up DDs UC claim with savings - what to do?

[CatsOverheating]

Young adult DD is having to make a first UC claim because of health issues. When they were children by making sacrifices I had gradually squirrelled some money away for the future for her and her sibling, including birthday gift money and money from a grandparent (now deceased) but I had kept it quiet so that it wasn't pestered or frittered away. It was meant for university, a small safety net and similar important things for both of them if I'm not here.

DD has been asked about savings in her UC application and so has asked me if there is anything to declare. I've looked out the paperwork for the first time in years and I think I've really messed things up for her claim. There is much more in her savings account than in her sibling's savings account, when it should be equal. I remember mislaying her sibling's building society passbook, and so putting the money into DD's, intending to transfer it over in the future to make equal amounts in each. I obviously didn't get around to doing this! I feel such a fool and could kick myself.

There is around 11k in the account in DD's name and under 3k in her sibling's. This obviously isn't what I intended at all - about 4k in DD's name belongs to her sibling. I can't afford to make this right myself, so I need to transfer that money over. If DD wasn't about to make a UC claim that is exactly what I would do to make things fair and equal.

How do I deal with this correctly? If the money stays in DD's account she will have about £90 a month deducted from her UC payment if I've got my sums right from googling, which she can't afford, and when it's not actually her money. If I transfer it out I'm concerned she will get into trouble with UC. Can anyone help please before she puts the claim in and I do anything?

Exactly. Legally she has £11k in savings. Doesn’t matter if you made a mistake 10 years ago. The bank account in her name has £11k in it. Otherwise people with £50k in savings could just say ‘oh ignore that cash windfall, that money really belongs to my xyz’

Seems so

This.

A huge amount of working people claim benefits. @jollywhite Why should they not be allowed savings? You sound bitter and unpleasant.

That's utter nonsense. If you are in a position to need benefits, you can apply for them and you can have savings. Many, many people worked and fought and continue to work and fight very hard to ensure we have these rights and to create a better society for all of us. Thanks to them we have a safety net, a social security system and allow disabled people to save some money so they can have a new cooker when they need one or a holiday.

I have worked with and supported many who do. Sadly there are always some who make these comments.

"Doesn’t matter if you made a mistake 10 years ago."

It might matter if you explain it to the DWP with proof. I am not promising OP that if she does this her dd will get the full award. But UC assessors are people too and occasionally do have the potential to accept a genuine and nuanced case!

I agree with this- it is definitely worth presenting all the information OP

It seems one or two posters mistakenly think they are posting on a thread in AIBU and are taking the opportunity to do some unwarranted bashing. This is Money Matters, and I posted here for reasoned and informed help and advice. Thank you to mostly everyone else.

Get proper advice @CatsOverheating before your daughter does anything with the money.

In 12 years volunteering with CAB specialising in assisting with benefit claims I’ve never once seen the DWP discard an amount in such a situation. The money is in her name, has been in her name for years and moving it right at the point of a claim will be seen as highly suspicious.

You need a plan for what happens when/if your daughter is treated as having the full amount in terms of what you as a family will expect her to do with the money.

Is the money actually in an account in an adult daughter's name? Maybe not if you'd be in a position to transfer it? If it's held in your name then I don't think DD would have to declare it.

Well said OP. It is a shame some of those have popped up.

I do appreciate the car idea. Neither of them drive and she does want to learn. It would be so useful on many levels, including future education and job prospects. She hasn't yet had the time and energy because of other pressures, and we've been put off by all the delays after lockdown. I'm not sure this is the right time for her though. Based on Catsknowbest's advice, I'm also not sure we're up to the hassle at the moment of dealing with suspicion. It's difficult.

This might stupid but could she buy gold with the money and put that away?

OP I fail to understand what the problem is. You are worried about your daughter being denied £90 a month, while she has 7K set in a bank account? Maybe you planned bigger and better things for it, instead of a rainy day, and I'm sorry the latter has happened.
But why can't you just use the savings?
Or make the money up yourselves?

Your aim here should be really to prevent any suspicion of fraud as that could lead to greater punishment, in which case @LauderSyme's suggestion of writing a letter and open declaration is good. But still you cannot guarantee them awarding the full amount.

@CatsOverheating please don't read any more or ask this question on here.

There are a large number of completely inaccurate and factually incorrect responses. People who don't have a clue what they're talking about stating their opinions as fact.

Contact the money advice service (previously Citizens advice service) and get some proper advice. I wouldn't Google either as you'll find such conflicting information. Best of luck

Also OP have you tried contacting a benefits advice charity?

https://www.disabilityrightsuk.org/links-organisations-giving-advice-benefits-care-and-debt

turn2us is another one.
Have you contacted a charity related to you daughter's illness which might also provide advice

@CatsOverheating
The post by @LauderSyme explains your best course of action. Explain where the money came from & divide equally between them then provide both statements & accompanying letter.
The only other thing you can do is if you have paid for things yourself for your daughter & her needs - you can remove those amounts from your daughter's savings. You will have to provide the invoices to UC but this is also legitimate.
I know someone who had been funding physio for their 24 year old & paying for private assessments as no one explained how the system works, they just got told they were not entitled to any assistance. By declaring the invoices they got their adult child's savings below £6k & the adult child now receives UC - which as an adult they are entitled to in their own right.
In this instance they want to help their child & the UC now pays for these things I stead of the parents
If your daughter lives at home though you might not get as much as you think - my son is 17 (so might be different) & not able to work, can't cope with college/education & he doesn't get much but we are still going through the LCW part of the process which might mean an increase

It is difficult. And I genuinely am just giving my input based on a lot of professional experience, as have some of the other posters. I also know from that experience that these situations do genuinely arise. Also OP I think someone mentioned PIP and this is something maybe you could look at soon, depending on your DDs needs?

Citizens Advice is still Citizens Advice

I've just had a look. I opened the accounts with them as the beneficiaries and with me as the trustee. It looks like this remains the case until they are 21. I assume I am able to transfer it still in that trustee role.

This could be important

Does she need to send the evidence of her savings right now? If not I would suggest that she tells them she has £7000, or exactly what her share would be. Then, I would get her to withdraw the whole lot from her savings account, open a new account for her £7k and pay the £4k into her sisters account. If they want to see the passbook or whatever, then she can explain that you, her Mum was saving it for her and has now given it to her to look after herself?

If your DD is under 21 and you are still in control of the money then you need to get proper advice on whose money it legally is.

Both for your DDs sake and yours.

It might be that you can transfer it as it’s yours legally or up to you what happens to it. But equally depending on the set up you might have to act in her best interest as trustee - and then there could be issues if the money is seen as deprivation.

Please get yourself proper advice from someone who can see all the ins and outs of the account and who’ll be able to guide you specifically.

if it’s money you’re squirrelling away on their behalf but they have no knowledge or access I’d just keep it that way and not treat it as theirs or declare it.

My mum has about £11K squirrelled away for my son. It’s in his name but he has no knowledge. He claimed UC a while ago. It never even occurred to me that technically he should have declared it and I used to work for DWP!