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.

Someone might ask the question about your savings when you apply, but then they’ll look at your account and see weekly Tesco shop, costs associated with caring for your kids, normal family days out. They’ll cross that with your everyday bank account seeing your salary used up on mortgage and bill payments. And they’ll say, “ah yes, everyday living costs for 4 years… all fine.”

This is not complicated.

This is so helpful and to read and reassuring. Thank you

FWIW, I was a benefits assessor, then a housing officer and a social worker specialising in eviction and family breakdown.

If you could see how relaxed I suddenly am you’d know how grateful I am to you, thank you

You can give the money back! And quickly - along with a written record (in the event of future problems) explaining that you neither expected, asked for or wanted the money, that your mother has recently been diagnosed with Alzheimers' which affects her decision-making, etc.

Although - I suspect that your mother knew exactly what she was doing - trying to ensure her money wasn't spent on care costs.

Not sure prayers are meant for wishing malice 😵‍💫

It was years ago?
and she has dementia, she wasn’t being calculated. Odd (worrying?) to suspect an 80 year old lady you don’t know. I also can’t give it back - that would definitely be distribution of assets.

I think there is a small degree of complexity here and that’s to do with OP’s mum potentially being investigated for deliberately depriving herself of assets, should she need care. OP could find herself in a big heap of trouble. Is it worth the risk keeping the £80k? On balance, I agree with this:

You can give the money back! And quickly - along with a written record (in the event of future problems) explaining that you neither expected, asked for or wanted the money, that your mother has recently been diagnosed with Alzheimers' which affects her decision-making, etc.

Did you miss
the part about the constant medical appointments only I am here to take them to? Or the part about the regular hospital stays so I need a job I can work remotely from a ward on? Or are you just being cruel?
I am not badly educated, I have a masters and have been offered promotions I’ve had to turn down as they involved being in an office.
I rely on no one, i do this all on my own since our divorce and his court ordered ban.

Definitely cant return it- that would be distribution of assets.

Why should the rest of us give you money (in the form of benefits) when you have £80k in savings and you’re earning £30k+ plus getting money from your ex DH and some benefits relating to your DCs’ disabilities?

You should have given it back then! Immediately and with confirmation in writing to your mother, her bank, your brother, her GP - to say that you didn't ask for this money and are returning it.

But it's too late for that now.

Your mother has deprived herself of assets - £80k and if she does at any time in the future require council-funded care the council will treat her as if she still does have that £80k.

If you spend that £80k, and your mother needs council-funded care, then your mother is screwed, basically.

I think this is what the CAB advisor was telling you - but you've got it muddled up. If that was £80k of money that you had saved yourself - there would be no issue about you spending it. But you say the CAB advisor told you not to spend it - because it's deprivation of assets. That only makes sense in the context of it being money your mother gave you to avoid care fees, and which she may need in the future as she is the one who's deprived herself of assets.

i have answered all this already.

I don’t think it helps your case for you to say that you took 80,000 from your mother when you knew that she wasn’t sound of mind.

There shouldn't even be a UC claim made when you have 80k in the bank. That's just unreal.

Because she's been misled into thinking if she spends the money she will be considered to have deprived herself of capital and will therefore be facing a future after it runs out, on an income she can't manage on, and without the safety net of the savings.
If she had recieved correct advice, that she could indeed use the money to top up her income (as the law expects, hence the capital limit for benefits) and when it has reduced over a reasonable time frame, she could claim UC, then she may not have posted.

You can also go on holiday - normal family holiday, nothing extravagant. Install the wet room, trying to keep costs reasonable in case it is questioned but it is a necessity for your disabled child (side note - speak with charities and your council to see if there are any grants for help with that).

You do not have to spend the next few years being terrified every time you tap your card to pay for something “just incase they question it.” You are allowed to live, to buy alcohol and make up, to take your kids to shows or soft plays or sensory days out, to go on holiday, to eat in restaurants, to replace furniture as your kids outgrow things, to buy clothes. You do not need to be afraid of every day spending, as long as it is within your means, so you’re not taking £3/4k out of your savings every month. Do you know what I mean?

This is so so lovely to hear, thank you

I don’t think she’s been misled I think the OP got confused with what they were telling her. Honestly there’s way no way anyone thinks that if you have any amount of savings you can never touch them if times get hard because if you do you’ll never get any benefits in the future. That’s absolutely ridiculous. I think she muddied the waters telling them about her mother giving her the money etc and that’s where the deprivation of assets stuff came about.

Nope, @5128gap is spot on.

Why are you being so vindictive? Do you want the life the OP is leading? You need to stop.

I think describing it as a catch 22 is highly misleading, as a catch 22 would be you can't claim because you have it, but you can't claim if you don't.

If someone is working in a job giving advice and telling people that they must never ever spend any of the savings in case they one day need benefits then honestly it is your duty to complain about that person so their can be retrained. They cannot be allowed to continue giving such terrible false information.