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Original poster

Found out I’m a beneficiary of a trust. Universal credit

37 replies

Dramakwe33n · 02/04/2025 18:59

So I’m currently buying a house with my partner I do not live with. I’m a single parent and claim a portion of my rent and child element through universal credit alongside work.

when I got to the point of purchasing the house I found out that my family were gifting me a lump sum of money which was lovely. I’ve now gotten to the point of requesting a giftee form and it turns out that it’s not technically a gift as I’m a beneficiary. I’m not named but it falls under the category of ‘descendants’ with my mum and her sister being the beneficiaries.

im now petrified I’ve been fraudulently claiming universal credit. Does anyone have a clue?

OP posts:
sparkellie · 02/04/2025 19:29

Have they given you money up until the point of you buying this house? If not then I can't see you have done anything wrong if there is nothing in your name. I'm presuming your mum and her sister are still alive, so are essentially the beneficiaries who can do what they want with the money. Surely if it was in your name you would have had contact from the solicitor/executor of the estate, and couldn't have not known about it.
I would imagine if all that is true you have done nothing wrong. You will need to declare the gift to universal credit, it may be disregarded if for a house purchase, but you would need to check.

Original poster
Dramakwe33n · 02/04/2025 19:36

@sparkellie so once the house is purchased I will not be eligible for universal credit as our joint income exceeds the allowance, which is fine. I’ve phoned them up to make sure that everything is okay on that front. I’ve only heard from word of mouth about the trust, never any legal/solicitors. From my understanding we’re not named on the trust by name just as descendants of the trustees and all beneficiaries are alive.

OP posts:
marniedes · 02/04/2025 20:00

Your family are rich enough to gift you a large amount of money and you’ve saved enough to buy a house and you’re on UC? How does that work?

Original poster
Dramakwe33n · 02/04/2025 20:20

Because I saved my money and work very hard on my own, the deposit I saved wasn’t a large one but combined with my partner who I do not currently live with we could’ve afforded a deposit @marniedes

OP posts:
Nextdoortomeis · 02/04/2025 20:40

@Dramakwe33n I'm sure lots of people work hard but on UC. But can't save enough money for a house.

LePetitMaman · 02/04/2025 20:43

No, she's living on her own and claiming UC, while passing money to her partner who earns over the limit... Because both their savings in his name alone means she gets UC like a single person.

tillytoodles1 · 02/04/2025 20:45

LePetitMaman · 02/04/2025 20:43

No, she's living on her own and claiming UC, while passing money to her partner who earns over the limit... Because both their savings in his name alone means she gets UC like a single person.

That's disgraceful. How to fiddle the system eh.

LePetitMaman · 02/04/2025 20:46

tillytoodles1 · 02/04/2025 20:45

That's disgraceful. How to fiddle the system eh.

Show quote history

Yep, pretty much

DontGoChasinWaterfalls · 02/04/2025 20:47

Yeah must admit it doesn't sit comfortably that you claim UC and have a partner....

DontGoChasinWaterfalls · 02/04/2025 20:47

And I mean that in the sense you're effectively claiming like a single person when your claim should be a joint claim.

JustMyView13 · 02/04/2025 20:48

Technically, assets held within a trust are ring fenced from the person. So it’s unlikely this will be an issue, the asset (cash) technically only becomes yours when it’s transferred to you.

Blondeshavemorefun · 02/04/2025 20:49

marniedes · 02/04/2025 20:00

Your family are rich enough to gift you a large amount of money and you’ve saved enough to buy a house and you’re on UC? How does that work?

I know lots of people on uc who have a mortgage

actually harder as they don’t get a rent element paid

where friends get maybe £600/1000 rent paid via uc

Original poster
Dramakwe33n · 02/04/2025 21:00

LePetitMaman · 02/04/2025 20:43

No, she's living on her own and claiming UC, while passing money to her partner who earns over the limit... Because both their savings in his name alone means she gets UC like a single person.

No I’m not 😂 my partner is not my childrens father. We have been together for 3 years and only just decided to live together because why would I sooner. I have saved up for years and years and work as many hours as I can and have a little over the amount you can save before deductions. I get this deducted and universal credit is entirely aware of my financial accounts. My partner is putting a lot more into the house as he has more saved. Didn’t realise I have to move a fella in after the second date…..

OP posts:
LePetitMaman · 02/04/2025 21:02

Dramakwe33n · 02/04/2025 21:00

No I’m not 😂 my partner is not my childrens father. We have been together for 3 years and only just decided to live together because why would I sooner. I have saved up for years and years and work as many hours as I can and have a little over the amount you can save before deductions. I get this deducted and universal credit is entirely aware of my financial accounts. My partner is putting a lot more into the house as he has more saved. Didn’t realise I have to move a fella in after the second date…..

Show quote history

Nice way of ballsing around the fact you've had a partner for 3yrs, saving for a house purchase together, but claiming as a single person

Blondeshavemorefun · 02/04/2025 21:03

DontGoChasinWaterfalls · 02/04/2025 20:47

Yeah must admit it doesn't sit comfortably that you claim UC and have a partner....

Why ?

im sure the partner doesn’t pay her bills as he has his own housing bills to pay

Original poster
Dramakwe33n · 02/04/2025 21:06

LePetitMaman · 02/04/2025 21:02

Nice way of ballsing around the fact you've had a partner for 3yrs, saving for a house purchase together, but claiming as a single person

Show quote history

I’ve actually been saving for many more than 3 years becuase I’m a single parent and have a low income and work extremely hard. He does not contribute anything financially to my household. Why should he? If you think he should please suggest a time period I should’ve moved him in? One week? Two?

OP posts:
anon2022anon · 02/04/2025 21:07

People should stop being dicks. Some people on UC vape, or go out, or have their nails done, or pay debt off, or live in expensive areas where they can't afford to pay anything but bills. The OP is working, has been saving as much as she can, and has done the sensible thing of not moving a bloke in til she's ready to commit properly.

Stop acting like Tory propaganda, like those on UC are robbing you.

GrannyAchingsShepherdsHut · 02/04/2025 21:07

LePetitMaman · 02/04/2025 21:02

Nice way of ballsing around the fact you've had a partner for 3yrs, saving for a house purchase together, but claiming as a single person

Show quote history

They don't live together, so she is a single person!

Would you be happier if OP said 'boyfriend'? Confused

Noras · 02/04/2025 21:08

JustMyView13 · 02/04/2025 20:48

Technically, assets held within a trust are ring fenced from the person. So it’s unlikely this will be an issue, the asset (cash) technically only becomes yours when it’s transferred to you.

It depends if it is a bare trust and she can ask for monies to be paid over. There are rules re trusts and she has to let them know and look at the rules.

BottleBlondeMachiavelli · 02/04/2025 21:11

LePetitMaman · 02/04/2025 21:02

Nice way of ballsing around the fact you've had a partner for 3yrs, saving for a house purchase together, but claiming as a single person

Show quote history

She IS a single person for tax and benefit purposes until they move in together.

Single parents are allowed to date. In this case, dating has led to her being able to move in together and so off benefits. What exactly are you complaining about? Or would you advise women to make themselves financially dependent from the first date?

GrannyAchingsShepherdsHut · 02/04/2025 21:11

OP is it that you are able to have money directly from the trust, or is DM suggesting she'll take money from the trust and then gift it to you?

Redrosesposies · 02/04/2025 21:12

When you say you have a partner, is he the father of your children or is he a boyfriend maintaining his own house or living with parents? Edited as I can see you've answered this.
Not that it's anyone else's business (and I'm usually the first to complain if I think someone's claiming benefits unfairly)

Anyway well done for getting to a position where you no longer need to claim benefits OP. The more people that do this, the better.

It sounds like it's a simple discretionary trust and you actually have no entitlement to anything from it unless and until the trustees decide to release it to you. They could give it all to your siblings or cousins if they wanted to and there's nothing you can do about it so no, it wouldn't be taken into account for UC.
The receipt of the payment would likely have ended your entitlement even though it's for a house purchase but that makes no difference in your situation as you won't be claiming any more anyway.

BottleBlondeMachiavelli · 02/04/2025 21:14

DontGoChasinWaterfalls · 02/04/2025 20:47

Yeah must admit it doesn't sit comfortably that you claim UC and have a partner....

It sits absolutely fine with me. Women do most post-divorce childcare. It’s a struggle to reestablish yourself as a single woman. More power to her, I say.

22mumsynet · 02/04/2025 21:15

From what you have said it sounds like it may be a ‘discretionary trust’ (DT)You should check this with the trustees/ a solicitor. IF it is a DT then this would not be included in the UC calculations. This is because you do not have a RIGHT to receive anything under a DT, you are one of a number of beneficiaries who are only entitled to be considered to receive a benefit from the trust. If it is a different type of trust (eg bare trust, life interest trust, interest in possession trust) then this would not apply.

Papercup · 02/04/2025 21:19

LePetitMaman · 02/04/2025 21:02

Nice way of ballsing around the fact you've had a partner for 3yrs, saving for a house purchase together, but claiming as a single person

Show quote history

At what point would you say that a boyfriend not living with you should start being a factor in benefit assessments? After the first date? Once you’ve had sex? After you say “I love you”?

Or maybe, more sensibly, it should be once you’ve decided to commit to each other by living together and sharing living costs? 🙄