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Original poster

do childrens savings count

53 replies

nametaken · 19/04/2009 18:48

If you have to claim benefits, and you have no savings yourself but you have childrens savings accounts with £6k each in, do you have to declare this money as your money.

Just a hypothetical question.

OP posts:

waitingforgodot · 19/04/2009 18:59

I wouldn't have thought so as technically it's not your money. Not sure though but will watch this thread with interest

nymphadora · 19/04/2009 19:27

For council tax benefit I had to show their books & also their premium bonds. I think there is a limit that they can have

TheArmadillo · 19/04/2009 19:32

yes - they will be on your claim and you will have to show statements/account books for all their money too.

KingCanuteIAm · 19/04/2009 19:34

Yes it does, otherwise people would just give their savings to the kids and claim benefits! You have to declare anything over £3000.

BigBellasBeerBelly · 19/04/2009 19:43

Presumably if the savings were in the childs name and the parent couldn't get at them, they wouldn't be counted though?

KingCanuteIAm · 19/04/2009 19:53

Yes they would be counted! The savings are seen as belonging to the family. I am not sure exactly how they deal with it if you cannot get at a childs savings. I do know they will leave you with no income if you have qualifying capital of your own that you cannot get at!

BigBellasBeerBelly · 19/04/2009 20:01

Was just a thought canute. TBH the only childrens accounts I've seen can be accessed by the parents..

Just thought if the parent couldn't touch it they'd be unlikely to put their savings into it!

I suppose sometimes people put money in trust etc but if you're rich enough to have arrangements like that you probably don't need benefits...

KingCanuteIAm · 19/04/2009 21:07

Sorry the ! were in shock at the system not at you!

It is all a bit odd but is to stop people hiding assets and claiming. It seems there are many people who are prepared to do this kind of thing, even those rich enough to have these arrangements in place (I suppose you don't get rich by spending your own money!)

BigBellasBeerBelly · 19/04/2009 21:19

No worries canute

expatinscotland · 19/04/2009 21:20

it's meant to prevent willful deprivation of capital.

by which you attempt to hide your assets and claim benefits.

BexieID · 19/04/2009 22:55

You can't take out money from Child Trust Funds, only the child when they reach 18. You can't put anymore than £1,200 in it a year either, is that right?

FAQinglovely · 19/04/2009 22:58

oh shit - just thought - my DS's each have just over £3k in a trust fund that was set up for them by my parents (they were the executors of the will) after my granddad passed away. I can't get at it, in fact no-one can get at it until they turn 21 (Granddad didn't want them having it at 18)...........am I supposed to have declared this??

Had totally forgotten about it until reading this thread.

KingCanuteIAm · 19/04/2009 23:01

Yes you are FAQ, as I said, I am not sure how it works when you cannot get at the money, where it is in trust etc. Having said that, I am not sure how they will tell, or what they wuld do if they found out. After all it is not like you can live off it - I assume that the interest is reinvested?

FAQinglovely · 19/04/2009 23:03

I have absolutely no idea - don't even know where the money is being kept.

The form I filled in last year when I went onto IS didn't mention anything about children's accounts.

Does this mean I have to contact my parents (haven't spoken to them since Christmas - and have no desire to either) to find out exactly how much is there and where it is???

This is going to seriously fuck up my money isn't it >

KingCanuteIAm · 19/04/2009 23:19

Last time I filled in the forms it did ask if your children have any savings over £3000, things may have changed thugh as it was a long time ago. I know it does ask on the Housing Benefit forms.

How about if you call then for advice without giving your name? It would be generic information so I don't see why they would need your name or details for it.

TBH I would hope that it would not mes up your money as you have no access and it is an inheritance not money you have stashed - and you can prove that if you need to.

FAQinglovely · 19/04/2009 23:26

oh bugger it's only recent that I filled the HB forms in I must have glossed over the bit with children's savings as I'd totally forgotten about it until reading this thread

FAQinglovely · 19/04/2009 23:30

you know you're right - just done a google and almost every council website says that children's savings over £3000 are taken into account.

oh shit how was I so stupid to forget it

KingCanuteIAm · 19/04/2009 23:31

Oh dear

TBH, if it were me, I would be tempted to say nothing - given your particular situation but I would never advise someone else to do that as it is a huge risk.

When I asked about the interest being reinvested I was really meaning do you get the interest paid to you? Some trusts allow interest payments, some don't. As long as you are not getting interest payments that you have not declared then this information does not change your actual financial situation IYSWIM.

muggglewump · 19/04/2009 23:33

FAQ, my DD has the same. It's from my Dad (still alive), I have no idea where or how much. All he has told me is that it's hers when she's 21 and will at least cover any Uni debts. That means nothing to me either.

It didn't occur to me I had to declare it as it's not mine or DD's until she's 21 (she's 7). I will never have it so it won't effect my household income.

Perhaps I better call DWP tomorrow to make sure I'm not claiming fraudulently!

FAQinglovely · 19/04/2009 23:35

no I don't get any interest payments made to me (wouldn't surprise me if my parents were given that they sorted it all out..........but that's another thread).

God it just never occurred to me about that at all.

I'm going to have to tell them I can't sit here now knowing I haven't declared something I should have done - will they need the exact figure

KingCanuteIAm · 19/04/2009 23:39

Call them FAQ. I really would suggest you try to get the information you need before you let them know who you are though. If there is a problem it would be helpful to you to know what and have a chance to get things in place first IYSWIM.

If they think it is important they will need to have an idea of the rough amount and they will need to see statements etc. (I know that is not the answer you want sorry )

Another thought, make sure it is clear that you have no control over the money, that you are not a trustee etc.

muggglewump · 19/04/2009 23:43

It would seem we are in the exact same situation.

My brother will have control when my Dad dies though, I really will never see that money at all, not that I expect to, just saying so it's clear I am not benefiting from it at all with regards to claiming benefits.
My financial situation will change when my Dad dies but DD's trust fund will never benefit me.

I hate talking about this, my Dad talks like he will die next week and I hate it. I really don't want to have to bring up the subject DD's trust fund with him. I've purposely never asked as it makes me so uncomfortable. All I know is what he's told me. I change the subject quickly.

Sorry to invade btw, I just realised that this could affect my benefits too as I claim IS/HB/CTB

FAQinglovely · 19/04/2009 23:45

I can guess at the rough amount (in total) - would be just under £9k between the 3 of them (excluding any interest they may have earned since May/June last year)

I'm SO not ready to have contact with my parents again yet but I'm going to have to

thumbwitch · 19/04/2009 23:50

FAQ - you could talk to the CAB about it first - they might be able to tell you in more detail whether or not it will affect your benefits.

If the savings are in Trust, your DC's names might not be the primary names on the accounts - we had savings in trust for us and the primary account name was my grandma until she died, then we took them over. Worth talking to the CAB before you phone your parents, at least they will tell you what info you need to have to pass on to the benefits people.

KingCanuteIAm · 19/04/2009 23:50

under 9k/3 is under 3k each so you have not got a problem ??

As far as you know there is under 3k so I don't think you have done anything wrong or that you have anything to let them know - bearing in mind that any investments will be going down at the moment anyway...

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