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.

As I said, my mum did all this properly and carefully with a solicitor, accountant and financial advisor. The paperwork was meticulously drawn up to ensure the cost of care for either/both of them didn’t wipe out the savings and house equity. This was all done with professionals who know exactly what they are doing.

Thank you so much, I’ll do this. I have a hoist but it’s more trouble than help as constantly malfunctions.

Its not complex, and believe it or not, nor is it unusual.

This is the problem with asking online, a good proportion of your responses are guesses at best. If you ask someone who actually know, they would tell you, you can live on this money. CAB are notoriously useless ime, they know a little about a lot.

Op, I can’t beleive you think this is complex and no the thread isn’t telling uou that, I get you might find it complex but this is as basic as it gets. You could have phoned universal credit helpline and asked them for gods sake.

i understand you don’t want to spend the money and I think that’s at the root of this, but not doing so means you won’t get universal credit there is no trick to allow you to access tax payers money so you don’t need to spend your own

bur paying off your debt and paying off your mortgage will reduce your outgoings. And allow you to ultimately claim.

or you can keep it squirelled away but you won’t be getting uc. Your choice

please stop imagining what I said in my appointment! At best it’s weird, at worst it’s goading.

That’s not how I feel nor what I’ve said. I wanted to check how to safely navigate the lump sum so I can claim UC which I will need to do forever as my situation won’t change (unless incredibly I meet a new partner from my kitchen table desk who wants to fall in love with me, share all the bills, rarely see me as I’ll be caring for the kids and always accept they will come second to my kids). That can’t be my plan A!

It’s the only thing that make sense for you to have come away from that conversation thinking you weren’t allowed to touch that money for any reason and had to just live on a pittance and get into debt for evermore.

No one would have told you that. I could understand if they had only said no to the wet room, as not all advisors are all that great. But I cannot understand any advisor telling you that you cannot touch that money for anything and cannot use it for living expenses. The only thing that makes sense is that the conversation for too far off track.

Op what’s the issue here. If you won’t spend it, you can’t claim uc. It’s that simple.

if you wish to spend it, you can do so pm normal living expenses, paying down debt or paying your mortgage.

you clealrh don’t wish to spend it and I think that’s the issue, you want to game the system, keep it and claim.

I think it’s you who has no shame. You know I’m really struggling right now? Charity worker, 2 profoundly disabled children, mother with dementia, on my own?
oh yes, and I pay my taxes too.

I think the reason people are getting frustrated is after all these pages you still think it’s complex and unusual. As others have said it really really really isn’t. You just just need to spend your savings on your normal life until it runs out. It honestly is that simple. It really doesn’t have to be done ever so carefully with receipts for every food shop or electric bill. As long as you need whatever it is to live (or provide an essential thing for your children medically) it is fine.

You seem so so worried about deprivation of assets for yourself but don’t seem worried that it’s actually your mother who could get in trouble for it as she’s actually pretty much done just that!

i was told spending it then claiming UC would look like distribution of assets. I am fine to spend it. I didn’t want to spend it then find I’m ineligible for benefits. It’s that simple.

Just work more hours and use the money you have access to for your food, clothes, heating, raising (your) family...

Why would you think people with v v low incomes, say 15k, half what you earn, who still have to pay income tax, should support you financially??? Why???

How does a person's brain work like that???

Where has this entitlement come from? :)

No, I’m worried that it could be considered distribution of
assets, be told I can’t claim UC, and carry on living in debt and financial stress forever.
the conflicting views from people about what is and isn’t allowed supports my belief it is not simple.

Your entitlement is beyond words. You have £80,000 you won't spend and expect the taxpayer to fund you, many of whom barely have savings anywhere near that and just get by every month probably on less than you earn plus your benefits. The magic money tree has wilted big time already.

You have 80 grand.

£80,000

But you are enquiring about getting benefits???

Good god.

Your circumstances beyond the words "80 grand" and "benefits" are irrelevant to the thread. As a PP has said, tough, you just have to spend the money to live on, then claim benefits so that you can feed yourself...

I work 39 hours a week and care for 3 vulnerable people.
if someone is on £15k on their own i understand they can claim UC.
I pay income tax too.
Entitled? No. Broken? Yes.

OP - the issue of deprivation of assets isn't related to you spending on your daily living costs. The issue of deprivation of assets relates to your mother giving you £80k when she was diagnosed with Alzheimers. As pp has already pointed out - your situation is common and not complicated. You have savings which mean you don't qualify for universal credit.

The more pressing issue is the one that you are consistently choosing not to engage with - and that is your mother's choice to give you the money in the first place, when she did that and why she did that.

Instead of focussing on the morality of spending money your mother told you not to spend until after she'd died - you might think more deeply about the morality of accepting a large sum of money from a woman who'd been diagnosed with Alzheimer's! You know your mother was confused at that point - why didn't you just give the money straight back to her? Why go along with her idea of keeping the money in your bank account until after her death? Why do you think she did that instead of simply willing it to your children?

Your brother is POA - at what point did he take on that role? Was he POA when your mother made the unexpected transfer of money to you?

Again, you and your brother need to seek, and pay for, professional advice.

My circumstances are entirely relevant as they are the basis for my UC claim.

If you are living on this 80 grand, who is going to tell you anything...

You won't need to enquire about benefits for years. You are free of the system. You can support yourself now... (SHOCKER)

So do it. Pay for yourself. Have some pride and let benefit money go to those who really need it... Because they don't have fifty quid, let along 80 grand.

God..

You have no claim. You have £80k in the bank!

I don’t think it is - CAB Advised me that dipping into it and spending it to drop it down to under £16k would flag as risk for DOA.

my brother was made POA around 3 months post diagnosis.

I have explained so many times why she gave me the money. And that she didn’t ask me first. You can’t not accept a bank transfer.

When I no longer have that 80k 😵‍💫

Honestly, it isn't.

So for example, DH was made redundant. He got a £60k payout. I work and earn well but we'd still be entitled to UC IF we didn't have £70k in the bank. Instead UC expected us to use that £70k to fund us until either DH got a new job, or the money ran out (went below £16k). We could use it to do all the normal stuff - kids hobbies, petrol in the car, house insurance, even a cheap holiday. We couldn't transfer it to the kids, give it to charity or pay a lump sum off the mortgage.

In your case, you use £1700 per month out of the £80k. That makes up the short fall/ amount UC would give you.

So £80,000/£1700= 47months. Plus a few home repairs and the £16k you can have in savings, you'll be able to claim UC in 3 years.

I don’t understand “who is going To tell you anything”.

I am very proud of how I am coping with this life.