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?

Yes indeed. Hope you can reach a solution OP 👍

This!

Yawn.

This.

Anything in her name will need to be declared. You do know they are about to be able to check all bank accounts yes? If you move the money she may get into real trouble and then accused of privation of assets. That would be worse than losing a small amount each month. You'll just have to apologise to her sister and make it up to her bit by bit. You DD making the claim will just have to lose some due to having some savings. All you can do is apologise to your DC for your mistake.

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.

I don't understand this. The point seems peculiar and irrelevant to me. The family will expect her to do what they expected her to do before UC needed to be claimed.

OP regardless of who is beneficiary or trustee your dd must declare all financial assets linked to her name. The DWP have data matching agreements with all banks and building societies so they will find out about it and would view non-disclosure as fraud.