Savings in my name stopping Universal Credit despite low income

[slowingdown1]

can anyone more financially savvy than me help?
Recently divorced, ex DH pays minimum child maintenance. Have a low
income due to home working in low demand role so I can care
for 2 x disabled children. Yearly
salary is £31k before tax, I save £100 monthly into pension. I claim Scottish disability payments for both kids which go on private treatment / therapies. Each month I scrap by and have a constant low credit card debt despite my best efforts. I have savings that were gifted to me by my mum as long-term financial security of £80k. Although the money is legally in my name, I have made a firm promise to her that I will not use it, so morally I do not feel able to touch it until she is no longer with us.
My current income is low, but because these savings are in my name, they are preventing me from applying for Universal Credit as above
the threshold.
I understand I can’t eg transfer the savings into trusts for my kids as this would constitute deprivation of capital. I can’t ask my mum to eg take it back for the same reason.

I agree with all the posters who’ve said that UC isn’t for people who have £80k lying around.

You say your brother will be able to pay potential care home fees (£60k - £80k per year). But you don’t know he will, or that you could care for her at home - are you sure you’ll be able to - for possibly years - as well as looking after your children? What would worry me if I were to use that money is that this would be easy for her local authority to prove deliberate deprivation of assets because she gave that money away at a time she would have foreseen receiving care in the future, shortly after her diagnosis.

thank you for pointing this out this amazing fact.

Firstly I would really really make sure with 110% certainty that your brother is going to fund ALL of your mother’s care for the rest of her life. As others have said if he doesn’t and her finances are investigated it’s THAT that might be classed as deprivation of assets. And if they want the money back from you to pay for her care and you’ve spent it you could be in a whole lot of trouble. Especially because you have an asset (your house) that they can take from you. Someone else said on here (and I have not double checked this) that there is no time limit on deprivation of assets for care fees unlike inheritance tax. And the fact she was diagnosed and then gave that money away almost instantly won’t look good.

That’s not what you said in the OP. You’ve changed your story. Your OP suggested you wanted help to commit benefit fraud.

Are you saying your mother just happened to transfer all that money to you without your knowledge and consent? You should have sent it back and got advice at that time.

I will happily steer you in the correct direction.

I’m as sure as I can be that he will do as he’s said he will, I’ve no reason to think otherwise, but you’re right, it’s not impossible he changes his mind.

Forget about the universal credit. Surely remortgaging and paying this towards your mortgage is the best use. You can then lower your monthly payment to give you more breathing space or lower your term or a bit of both. You could even look at paying in a proportion to your mortgage say £50k keep back £30k. There will be lots of options, spk to a mortgage adviser and get options.

No point having £80k sitting in the bank and your struggling. I’m sure your mum would not want you to be struggling with money worries. Paying it towards your mortgage is not frittering it away.

Genuinely wondering if you are my ex, this is exactly the taunting, passive aggressive tone he writes in.

I did not say I want to commit fraud 😂I want to do things right so I can carry on caring for my kids forever, not be in jail, my goodness.
and yes, she transferred it with no warning or “permission” the day she received her diagnosis and prognosis.

You are not in some sort of abnormal position here, you have e been given money so you either use it or scrimp without UC. The government absolutely do not need to be paying UC to people based on ‘I promised I wouldn’t spend it yet’ - can you imagine the state of the country they if we all did that, oh hang on, it was possible on tax credits. Yeah. Fuck that. Spend it or suck it up.

You can reduce or pay off debts. That includes your mortgage. That isn’t classed as deprivation of capital. Read the relevant part of the ADM.
“H1796 People are not treated as having capital of which they have deprived themselves if
1.it reduces or pays a debt owed by the person
2.they purchase goods and services and that expenditure was reasonable in the circumstances of that person’s case.”

They definitely can go back as long as they want. Each LA has a team that investigates potential deliberate deprivation of assets and they can and do go through all financial, legal and medical records.

As she gave the money to the OP one week after an Alzheimer's diagnosis, my guess is that it was to avoid care costs. Which is a very clear deprivation of assets should she ever need to rely on publicly funded care.

Just explain to DWP that you promised your Mum you wouldn't spend it, i am sure they will be fine with that

Ohh ... 😂😂

YOU HAVE 80 GRAND IN THE BANK

Ah now this is the part that would worry me. Your brother’s situation could change. I think you need to discuss everything with him.

He’s lovely but lives in a sort of different world of high income,multiple properties, abroad and has live in staff, his attitude is very much “It will be ok” as for him, life generally is very ok. I know he thinks I over worry (not untrue) but he definitely leans in direction of it will be fine, I’ll cover mum’s care costs if and when that happens. But on the ground here he doesn’t see the day to day deterioration in her health, though I do keep him in the loop.

It may have been but in having dementia she may not have to pay for her care anyway, there are ways to have care funded if it is due to ill health

Not remotely helpful. Just nasty

Did you receive any legal advice when your mother gave you such a large sum of money?
If not, it might be worth consulting a solicitor before you make any decisions.

Unfortunately, Alzheimers/dementia alone does not qualify for any additional funding as, unless there is some other serious health issue, constant medical/healthcare is not required.

And there's not "may have been" about it. Giving away a large sum of money on receiving a diagnosis of Alzheimers is a very clear cut example of deprivation of assets. You really couldn't be any more obvious about it.