Inheritance for child when the parent is on benefits

[moneyisnotfunny]

Nc and some details changed for this. My young daughter is going to inherit around £30K from her late father once the estate is sorted out through probate. I am a single parent carer on benefits and am concerned about how to handle this situation. The money will be very much my daughter's and I have been told that it is to cover her maintenance up to when she reaches adulthood. Because it is maintenance, there needs to be a way of releasing the maintenance amount per month to me for her every day living expenses. If the full amount went into my account then my benefits would stop and the money would run out long before Dd hits 18 and we would because off as a family. I hope that makes sense.
How can I keep her money safe and in her name but released monthly to help for her day to day things? Is this possible? It's around £300 a month that she got and this is the rate it would continue at afaik. I will be asking for it to be paid into an account in her name. Multiple Junior ISAs? Premium Bonds? She is 8 and any account will have to be overseen by me as her only parent/guardian.
TIA.

I think you’ll want to set up a trust - if you talk to the CAB they will be able to advise, or one of the money charities. Or just talk direct to a local solicitor

The capital amount is reasonably straightforward from a UC point of view as long as who has the beneficial interest is clear.

Income might need some head scratching although, in UC, only income sources listed in the 2013 Regs count. Anything else is Capital including, oddly to my eyes, rent arising on a property the claimant is trying to dispose of.

@Bromptotoo please could you explain further as I'm not sure what you mean?

My friend recently went to the CAB for inheritance advice and they were useless so I'm not sure how helpful they'd be.

I’m sorry I don’t think you can do this. It’s either your daughter’s money or which case you can’t spend it or it’s yours in which case it affects your benefits.

you can try and setup a trust but if dwp since your 8 year old is paying you “rent” this will set off fraud bells and they may not accept it anyway.

Your daughter is inheriting 30k from her late father, and you want her to pay her keep out of it? And she is a child?
Why? What would you have done if she hadn't been left anything?

Were you on benefits when he was alive and if so were you receiving that £300 per month?

I take it a trust wasn’t already set up by the deceased? Is there a will, what does it state?

If the money is for your DD, and hasn’t been set up in trust already, I don’t think you’ll be able to dip into it to the tune of £300 a month for maintenance.

You’d be best spending a bit of money on some face to face legal advice.

If the intent was this money was to replace maintenance the late father has really messed up.

Any payment to you from this amount (if you can find a way of doing it) will be classed as income (not maintenance) and therefore affect your benefits

Only thing I can think of is to open an account for DD and pay a bill to the value of £300 pcm from that account. But children's accounts don't often offer that sort of facility.

@moneyisnotfunny you probably know this already but children's capital isn't counted in Universal Credit; only that of the claimant(s) is taken into account. DWP's guidance on this is crystal clear. As long as there is a clear track as to where the money comes from and who it's for all should be good. Even if she's too young to have an account.

The person who has a legal interest in money is usually going to be the account holder. The beneficial interest is the person for whose benefit the money is held. Money held by a solicitor in his client account is legally held by him. The beneficial interest is with the client.

What do you mean that it's "to be used to pay maintenance"? Did her late DF specify this in his will? If so, he should have laid out the process by which it woul be put in trust for her. Or do you mean that you plan to use it for the equivalent of maintenance? As PP said, you can't do that. It's your daughter's money, not yours. If she is a minor it automatically goes into trust, and you will probably be one of the trustees, but that doesn't mean you can use the money to pay your bills. It's your DD's to access when she becomes an adult.

If there is a solicitor dealing with probate I'd be asking for their advice. Money left to minors is usually held on trust until they're 18.

@TheDefiant said Any payment to you from this amount (if you can find a way of doing it) will be classed as income (not maintenance) and therefore affect your benefits.

It could be counted as income but not necessarily becuase of the way the UC regs define income.

It’s your daughter’s money. You can’t touch it. Nor can she until she is 18 in most cases.

Well if her father wanted it to be used for the maintenance he could no longer pay, becsue he, you know, died I hardly think OP is in any way wrong for trying to navigate a way to do so

It's not her daughter's money. Child support is owed for the next twelve years. That's what the money is for.

TBH the more I think about this the more involved it becomes.

What exactly does the will say about this money and how it is to be passed on for the benefit of the OP's DD?

Who is the executor of the will?

1. Do you receive a carer's allowance for her?

1. Does she receive benefits because of her condition? Is this what you are referring to as maintenance?

Anything you receive in UC shouldn't be affected by the amount she receives from her late father which she won't get until she's 18 anyway will she? Not sure someone can dictate how the money is used i.e. it needs to replace any money you receive in benefits?

I think you need to be a little clearer in your post please

No. It isn't. Child maintenance ceases on death. If there are substantial maintenance arrears dating from before the death, they can be recovered from the estate. That is all.

The money now legally belongs to OP's DD and OP cannot dip into it to replace maintenance or pay her bills. Unless of course the ex has set up a trust with money going to OP for this purpose, but in that case she wouldn't need to ask these questions.

If the will states it’s left to your daughter than than money should be ringfenced and placed into an account until she’s an adult if the is no stipulation on her age she gets it it can be invested in a junior isa or stocks n shares isa. Money like this is not usually left as maintenance i would be checking with the executors as it sounds bonkers. If you use her money then as an adult she can claim against you.

It says this in the OP:
I have been told that it is to cover her maintenance up to when she reaches adulthood.

That depends on what the will says. It may not be for maintenance.

Thank you for the kind responses. To those who have been unpleasant at a time when Dd and I are reeling from an untimely and very sudden death then have a word with yourselves.

Everything is in early stages but I know there is no will. He made no provision for any of his children as far as I know. It's a huge mess from what I hear. I will find out who the solicitor is and ask him or her for advice. The adults of the family sorting out the estate have said they want me to have what Dd would have had until she is an adult. I want it to be kept separate for Dd. I didn't expect this and it's come as a big shock that they are looking after DD's interests because her father had nothing to do with her in the past 8 years. He paid maintenance of around £300 a month. If there was no inheritance then I'd have been without it and had to manage as best I could. I'm a full time carer for a family member, I'm not sat on my backside scrounging from the State like some are trying to infer.

Citizens Advice should be able to help in so far as benefits are concerned but I think asking them about setting up a trust, beyond looking at what a trust is, would be a step too far. They'll signpost you to a Solicitor.

Taking a copy of the will to an appointment, or using a scan if you cannot see somebody face to face would be a start.

@moneyisnotfunny Do you know EXACTLY what the terms of the will are? Are you sure it wasn't actually put into a trust under the will?

Just to be very clear:

There is no will.

Dd is not named in anything.

Ex's family are wanting me to have what would have been the maintenance for Dd until she is 18 because they don't think we should be without it.

I am not a carer for Dd but another family member.

I have no idea how they are going to do this.