UC and savings

[lifeisrubbish123]

Hello

My dad has just come into some money from my grandads will. My Nan is in a home now so the house is sold and my grandad who’s died half has been to probate and released.
he has earmarked money for me and my sister,
He has earmarked £15000 for me on the provision I am to book and pay for a Florida holiday which is £7000 and then I am allowed to use the other £8000 towards buying a new car as I have saved £6000 myself to go towards the car I need.

I recieve HRC and LRM pip, my son recieves HRC and LRM DLA. We need the car I buying for reliability, low mileage, good warranty. I did have a car on finance but that was wrote off and can’t refinance atm because I don’t work. Although I am training to find a job I can go Into.

I know I can have £6000 in savings, which I could move to my son’s account for now.

My question js if I recieved a cheque from ny dad for the £8000 for the car (and I get him to pay the holiday directly from his bank account.) and then I was to spend that within 2 weeks of it clearing as my car is nearly ready to would I be sanctioned, or having a reduction of UC for one month?

the car garage doesn’t rake card payments, it’s only bank transfer due to scams and chargebacks and my dad doesn’t do online banking and transfers

This is incorrect, or certainly misleading.

You are "allowed" to gift anyone any amount, of course there are no rules prohibiting gifts.

It becomes an issue only if you need to pay inheritance tax after death, which of course the majority of estates don't. This rule doesn't mean you are not allowed to make gifts, merely that they must be included in an IHT computation, should you need to do one.

Can dad not pay for car and holiday? Then gift you the rest. You won't lose the uc unless you have 16000 in savings. But it will be reduced, they will make you spend it ... it's a horrible thing. We are stuck on u/c too and have no savings yet anyway.

I believe that the gifts get added to the estate upon the donor dies and are called chargeable considerations.

You are correct. I should have added tax free.

It’s only inheritance tax that’s potentially impacted. No income or other taxes.

Am pretty sure you can't transfer the money into your kid's account and use it to pay for your holiday as it will look like you are hiding money so your benefits are not affected.

You would be better off really insisting your dad pays for the car and holiday.

I had a similar situation. My mum inherited and wanted to gift me and my siblings a sum each. The amount was one I would have had to declare, so my mum just kept it and if I need anything, or just fancy a treat, she sends me the money. Gifts are allowed on UC, It is just an issue of it pushes your capital above a certain amount.

Yup I know.

If your children's accounts are accessible (withdrawals can be made) and they're under 18 then it counts towards your saving limit for UC. Junior isas which aren't able to be withdrawn from under 18 don't.
The only way to avoid a hit on UC payments is for your dad to directly pay for the things and the money not to touch yours, or DCs accessible, accounts.