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dependant children with an inheritance on means tested benefits.

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By *litterbabe OP   Woman
over a year ago

hiding from cock pics.

I wonder if anyone can clarify something for me that evolved from a pub conversation.

If you are on a means tested benefit and have a dependant child who has been left an inheritance in premium bonds by a grand parent, are those bonds included in the means testing?

I think they must be, but she says she doesn't have to declare them. She is the nominated trustee of the bonds, which she says she can cash in now if she wanted to, when the child is 16 the child then takes responsibility for then and she will no longer have any ties to the bonds.

It seems unfair to have to have less provision for the child as a result of a benefactors gift, although it is still a capital held by the family.

The benefit in question is universal benefit.

I felt it was an interesting situation.

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By *LCCCouple
over a year ago

Cambridge

Yes that sounds correct to me. There are very many quirks of the UK benefits system. The one I find most unfair is you can be a home owner, rent out your house and use the rent they pay to cover your mortgage, while you privately rent somewhere else and claim housing benefit for the property you live in!

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By *anchestercubMan
over a year ago

manchester & NI

It used to affect what you get, I'm not sure what happens under universal benefit.

If the parent was paid a premium beyond normal Income Support and JSA rates for the child then this premium would be lost if the child had more than £3,000 in capital.

Hopefully someone has more up-to-date info for you though.

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By *litterbabe OP   Woman
over a year ago

hiding from cock pics.


"Yes that sounds correct to me. There are very many quirks of the UK benefits system. The one I find most unfair is you can be a home owner, rent out your house and use the rent they pay to cover your mortgage, while you privately rent somewhere else and claim housing benefit for the property you live in!"

That is crazy and seems really unfair on others who really do need their rent subsidised.

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By *ee VianteWoman
over a year ago

Somewhere in North Norfolk


"Yes that sounds correct to me. There are very many quirks of the UK benefits system. The one I find most unfair is you can be a home owner, rent out your house and use the rent they pay to cover your mortgage, while you privately rent somewhere else and claim housing benefit for the property you live in!"

Really?

I didn't think that was possible.

I can't believe you can claim housing benefit if you own a property.

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By *radleyandRavenCouple
over a year ago

Herts

Not 100% sure but last time I looked at a claim form, one of the questions was something along the lines of are you the trustee/guardian (or whatever the correct term is) of bonds or any sort of cash sum held for a child.

I would hope it doesn't affect you though as, as far as I'm concerned, that money belongs to the child, not you.

In total, I think we were gifted about £2500-3000 when our son was born and for him over Christmas.

£500 went into a premium bond but at least £2000 went straight into a junior ISA that I now literally can't touch unless something happens to him. I think that idea was initially to safeguard it if anything happened to mine and Bradley's financial situation - I don't see why our son should lose out on something that was gifted to HIM because of our circumstances.

He is the only one who can cash it in when he turns 18.

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By *LCCCouple
over a year ago

Cambridge

You can if you don't live in it.

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By *radleyandRavenCouple
over a year ago

Herts


"Yes that sounds correct to me. There are very many quirks of the UK benefits system. The one I find most unfair is you can be a home owner, rent out your house and use the rent they pay to cover your mortgage, while you privately rent somewhere else and claim housing benefit for the property you live in!

Really?

I didn't think that was possible.

I can't believe you can claim housing benefit if you own a property."

I've heard of this but don't think it's legal.

One of my friend's landlords recently got done as the flat my friend was renting actually turned out to be a council property that the guy had claimed he needed for him, his wife and their 3 kids. - Turns out he owned and lived in a large 5 bedroom house and used the rent as private income.

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By *est Wales WifeCouple
over a year ago

Near Carmarthen

Needs specialist advice but from one solicitors website;

'The discretionary trust is a very flexible form of trust.

In these trusts the trustees have discretion as to how, when, and for whose benefit to use some or all of the capital and income of the trust fund. Beneficiaries or a class of beneficiaries are named in the trust deed and it is entirely up to the trustees to decide which of the potential beneficiaries is to benefit.

They are useful where the person setting up the trust (known as the settlor) has identified a group of people he wishes to benefit, for example children, but is not certain which of them will need financial help in the future or what help will be required. Sometimes a settlor has a main beneficiary in mind but feels it is inappropriate to put the money in that person's control.

As well as being flexible, discretionary trusts also have the advantage that the trust assets remain outside the beneficiaries’ estates for Inheritance Tax purposes and are disregarded in calculating means tested benefits. '

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By (user no longer on site)
over a year ago

When I worked in new claims there was a section which included questions about money. Do you or any of the people you are claiming for have current accounts, post office accounts, savings account,income bonds, capital bonds,ISA's Peps, tessa's, money or property held in trust, any other savings or investments?

Do the children you are claiming for own and money, property or land in this country or abroad? Money or property held in trust?

Do you or your partner have any money from the sale of a house? The list goes on I used to recite this shit about 40 times a day for seven years.

As for the person who thinks you can own a property to rent out and claim housing benefit on a property that you're renting, that's bull shit. As soon as you say you own any other property apart from your home a whole other section opens up with questions that include if the property is involved in any divorce proceedings, do you intend to sell the property blah blah blah then it's do you give us permission to send an evaluator to the property? No? Tough expect one to arrive. The DWP would expect you to sell your second property before you'd be able to claim benefit and if you couldn't sell it you'd have to be ready to provide solicitors letters and all sorts to explain the reasons why or they'd just give you contributions based benefit which means you'd get your stamp paid that's it, no money, no help.

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By (user no longer on site)
over a year ago

I know a female who was on esa and inherented £200k. She left benefits because that would be fraud

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By *litterbabe OP   Woman
over a year ago

hiding from cock pics.

It does make sense in some ways that benefits are means tested as if you are sitting on a big pot is it fair for the country to fund your basic needs. Even if you haven't the means to support yourself coming in you still have that means available.

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By *radleyandRavenCouple
over a year ago

Herts


"It does make sense in some ways that benefits are means tested as if you are sitting on a big pot is it fair for the country to fund your basic needs. Even if you haven't the means to support yourself coming in you still have that means available."

Technically, yes. But again, to me, unless you are housing/clothing/feeding those children, you should have no right to touch it.

I know the state look at it as "you have access to money" but that money still technically isn't your's and I don't think you should be forced to rob from children who's funds you are looking after in order to support yourself.

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By *radleyandRavenCouple
over a year ago

Herts


"I know a female who was on esa and inherented £200k. She left benefits because that would be fraud "

If I inherited £200k while on benefits, I would fully expect to come off. x

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By *LCCCouple
over a year ago

Cambridge


"When I worked in new claims there was a section which included questions about money. Do you or any of the people you are claiming for have current accounts, post office accounts, savings account,income bonds, capital bonds,ISA's Peps, tessa's, money or property held in trust, any other savings or investments?

Do the children you are claiming for own and money, property or land in this country or abroad? Money or property held in trust?

Do you or your partner have any money from the sale of a house? The list goes on I used to recite this shit about 40 times a day for seven years.

As for the person who thinks you can own a property to rent out and claim housing benefit on a property that you're renting, that's bull shit. As soon as you say you own any other property apart from your home a whole other section opens up with questions that include if the property is involved in any divorce proceedings, do you intend to sell the property blah blah blah then it's do you give us permission to send an evaluator to the property? No? Tough expect one to arrive. The DWP would expect you to sell your second property before you'd be able to claim benefit and if you couldn't sell it you'd have to be ready to provide solicitors letters and all sorts to explain the reasons why or they'd just give you contributions based benefit which means you'd get your stamp paid that's it, no money, no help.

"

I've worked at my current charity for 5 years and other charities before this one and had a client in this situation. We thought they were fraudulently claiming housing benefit as we thought it couldn't be right, check with the council that were paying it and the DWP and they both confirmed that you can claim in that circumstance. My colleagues and I were astonished, but that's what they said.

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By (user no longer on site)
over a year ago


"Yes that sounds correct to me. There are very many quirks of the UK benefits system. The one I find most unfair is you can be a home owner, rent out your house and use the rent they pay to cover your mortgage, while you privately rent somewhere else and claim housing benefit for the property you live in!

All income is legally supposed to be declared, if it's profit or loss makes no difference so this surely would affect any benefits!

Really?

I didn't think that was possible.

I can't believe you can claim housing benefit if you own a property."

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By (user no longer on site)
over a year ago

I used to administer some benefits so I can answer your question with a little bit of authority - it depends which benefits you're claiming and what is being left to you.

For example, anything left to you from a trust or estate that is shown on form R185 issued by the executor of the estate must be declared for tax credit purposes and as such will reduce the amount of benefits you are awarded. Anything like a lump sum, or legacy, does not need to be declared so will not affect your benefits.

If you are unsure if it needs to be declared then look on the R185, if it's not there then chances are you don't need to declare it....

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By *eorge17Man
over a year ago

Leven


"Yes that sounds correct to me. There are very many quirks of the UK benefits system. The one I find most unfair is you can be a home owner, rent out your house and use the rent they pay to cover your mortgage, while you privately rent somewhere else and claim housing benefit for the property you live in!

All income is legally supposed to be declared, if it's profit or loss makes no difference so this surely would affect any benefits!

Really?

I didn't think that was possible.

I can't believe you can claim housing benefit if you own a property."

Mps can claim expenses for renting a house even if they are renting one out

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