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 think that if she knew now she would say to start spending it. She was kindly trying help x

I don’t have the time, energy, Malice, Will or need to complain a volunteer doing his best.

That’s very kind, thank you, made me tear up x

A quick email detailing the advice you were given and advising them that their staff need retraining as the advice was wrong would take under 5 minutes.

Edited due to bad spelling

I think you need to seek psychiatric help with that incredibly vindictive post - you can think the OP isa bit of a CF or trying to play the system somewhat ( abd personally I think she needs a readjustment on her mindset on using her money) but given the fact she’s caring for disabled children and an unwell parent too, it’s a tough time I’m sure and people don’t always think logically in that situation, whether they have money or not - I don’t think a very vindictive post is remotely in the spirit of mumsnet

I think we should be directing our vitriol to @slowingdown1’s ex dh. He’s paying a pittance each month and leaving all care to the Op. Assuming he has a half decent job if he was paying his fair share then there wouldn’t be a shortfall and the Op wouldn’t be thinking about UC.

I absolutely despise feckless fathers who expect the taxpayer to pay for their children and wonder why it’s be allowed to happen for decades. It has to stop.

I don't understand why you don't just use the money from your Mum to reduce/pay the mortgage. It's hardly frittering it away. Then you can use your income for your other expenses and have more breathing room. Then later down the line you could apply for UC if you need it.
I get it could be a problem for someone on UC (I am myself) to be given £20,000 as they would lose UC but monthly outgoings would not be greatly reduced. £80,000 is however a rather different situation. I am sure that your Mum would rather that you weren't going into debt and that her money was making life easier in the here and now.

If she had a diagnosis of dementia when she gifted she’s on her own tricky path of deprivation of assets….

This has been said very many times.
If you read OP’s posts it’s quite clear her dear Mum’s intentions were to ensure her grandchildren were provided for.
From this thread it’s clear to see there is a lot of ignorance.

Do it so that it helps (or doesn’t mislead) someone else. It can be done diplomatically.

Hi. Yes. Me. I care for 3 ND children - one speech delayed and that self harm stims, and a fourth little baby with extreme feeding issues - can't eat solid food and has multiple food allergies.

I'm a solo parent. No support not even a lovely mother with a nice nest egg - was assaulted by little ones so no maintenance there. Well £6.72 a week. Wrote a book on the experience if your interested, to show evidence of financial hardship as due to the assault we lost our home, our belongings, even the food in the fridge and all sat in a Travelodge eating pot noodles for 3 months.

And I've been one of the main posters unable to comprehend.... How the earth you think you're entitled to UC.

Your ending paragraph clearly reads as I want to claim UC and how can I do that with 80k in the bank. And not "I've 80k in the bank and not allowed to spend it"

You backtracked when you realised your post had gone down like a shxt filled piñata, it absolutely should have been met with messages to the tone of "scrounger" and you should be embarrassed you even thought this let alone posted it...

It has been said many times because it is correct. An elderly woman, as soon as she was diagnosed with Alzheimer's gave £80k to her daughter, and told the daughter not to spend the money until after she (the mother) had died.

If the mother requires council-funded care then this will certainly be considered deprivation of assets and she will be assessed as if she still has the £80k.

So the OP's mother better hope that her wealthy son is willing and able to fund any care required as he seems to have indicated. However, as the OP has already discovered, our financial circumstances can change suddenly and unexpectedly.

For the umpteenth time - the OP and her brother, who is POA for their mother, should seek professional advice on this.

It's interesting that the OP sought advice on her wish to get universal credit, and is still talking about her future entitlement to that benefit, but has no interest at all in ensuring that her mother's future care needs can be met.

Have you heard of these things called trusts?

The LA won’t care what OP or what OP’s mum
gives as the reason for OP’s mum to give £80k to OP shortly after OP’s mum was diagnosed with dementia. I’ve said earlier that every LA has a team that investigates cases where people have possibly deprived themselves of assets. There’s no hiding.

Assumption, much?! I have no interest in my mum? mind blowing.
i have every faith my brother will follow through on his offer to cover her
care costs if and when necessary. He is very financially secure (not envious just a fact). I care for my mum and have her best intentions at heart. Stop needling.

No need to go to the bother of setting up a trust. A pretty standard will leaving the money to the grandchildren would be easier to set up - and would be a better way of ensuring that the money wasn't spent until after granny had died.

And it would have saved the OP from the nuisance of £80k in her bank account, preventing her from claiming universal credit!

I dony think we need to have a competition about which of us has a harder life. It’s not kind or helpful but I’m sorry to hear about your child’s speech delay and stims and baby who struggles with solids. I hope they have great support from ND and dietician and OT teams🤞
once again, I am talking about my right and need to claim UC when no longer have that sum in the bank. It sounds like you may be eligible for UC too and perhaps DLA? Wish you all the love and strength as a solo mum to kids with ASN💞

@Asb04 I’d love to read your book if you’d like to share the link. Amazing you’ve managed to do that while caring and working, that’s incredible.

As you've discovered the future isn't guaranteed.

I know of two men in their early 50s who've died this year - leaving behind frail elderly mothers.

One woman in my DF's nursing home is over 100 years old and has no living relatives - she had two children who are both dead. Her next door neighbour took on the role of PAO (which she is regretting especially as the late son thought he was being smart and set up some complicated trust in an effort to protect his mother's money from care fees and this is now having to be untangled).

Why not get good, professional advice on the matter of your mother's future care needs and how they'll be funded?

Surely no one is going to say you are trying to deprive yourself needlessly of assets if you are paying off your credit card bills or replacing a car or fitting a wet room that your children need. I think you have either seriously misunderstood what the CAB advisor told you, or the advisor got it wrong. I would seek a second advice, preferably from a charity that has an understanding of your children's disabilities.

You said your brother lives abroad. What if he and you differ about when your mum needs care? Is he fully aware of how much care costs here? I only ask because you already have a lot on your plate with your children with no support, along with your mum’s dementia. I said earlier in the thread, but I really think you and your brother should get together to discuss the future. Imagine even trying to look for the right care home for your mum, if the time should come? Sorry it’s not quite what you were asking and I really don’t want to worry you more but I think you should address the future with your brother.
Does he know about the £80,000 given 8 years ago?

OP - men and women of your mother's generation are very much aware of care costs and there are those who think they can and/or should act to avoid those costs.

The most obvious and simple explanation for your mother giving you that money soon after her diagnosis was that she hoped to avoid care costs, but was aware that her ploy might not succeed, and that she would still need the money to pay for care - and that's why she transferred the money from her bank account to yours - but told you not to spend it till after her death. Because she might need it back!

https://www.amazon.co.uk/dp/B0GDM56723/ref=mp_s_a_1_1?crid=3KJV0CQ35RRQ8&dib=eyJ2IjoiMSJ9.EfI17VOMXfj8EPjZ97xWrg.7s8oPcjU3hf8ucW0PoI-FwA4n8I78QCjoHN3xKos6DI&dib_tag=se&keywords=The+scapegoat+story+sedation+is+not+care&qid=1775411230&s=books&sprefix=The+scapegoat+story+sedation+is+not+care+%2Cbooks%2C320&sr=1-1

If it removes the link it's the scapegoat story: sedation is not care. 💕 It's on Amazon.

Thank you, been one of the hardest things I've ever had to do and it hasn't been smooth sailing. Don't mean to attack a fellow struggling mum it just does irk me when people are genuinely struggling and it looks like people are outright just trying to play the system

Don’t be sorry, it’s very kind of you to think of this. He’s loved abroad for
the last 10 years and knows about the gift from my mum. We are
very respectful of one another- I do a lot of looking after of her and he is sad he can’t be here to do this and has made it clear he will cover all financial costs of her care of and when needed. He is very pragmatic and would enjoy looking into care homes and choosing the “best” one though it come down to me to do the on the ground move etc. I can do that though. We probably do need a more
serious conversation though at some point as he is very much a non -worrier “well cross that bridge when we get to it” which I guess he can be as can throw money at problems, I am far more cautious and worry much more.

Well UC helpline would be the obvious place to start! Seems weird to go to CA first, then come here (where there’s been at least one poster who was a benefits advisor).

Then just leave the money in a will direct to the children? There really is no need to panic and transfer 80k immediately after a dementia diagnosis unless you think for some reason the money won’t still be there when you die….? And if you are worried the money will disappear for some reason…. Like into care home fees or inheritance tax…. And you try to avoid doing that by giving it away quickly to relatives, then thats exactly what deprivation of assets is.