Spending childrens savings.

If the "locked account" (?) Is in the child's name, then it should go straight into an account for the child, such as a Junior Is a, and National Savings Children's Bonds, where it would remain until she is eighteen. Why would it be included in the mother's money for benefit purposes?

This is what my daughter was told at the Job centre that childrens savings can be taken into account when assessing benefits. I hope you are correct j08 I'll have to investigate but as I say this is what she was told when she informed them when asked about any savings she had.

I agree with j08 - if the money is now in the child's name and is put into Junior Isa or similar in the child's name then I don't see how it can be classed as the mother's savings - I am no expert but that is what seems logical to me.

It would depend upon whether the money has stayed in the child's name. If the maturing account is in the mother's name then you would have a hard job proving that it was the child's. Perhaps producing a copy of the Will of the grandparent?

I'm no expert, but I would want to go all out to protect the money for the child's future. Even by resorting to legal advice if it came to it.

Benefits Agency take into account financial resources of all members of a household when calculating benefit entitlement so while your GC lives with their mother. their resources will be taken into account. Even if they are working and not claiming benefits if they live in a household claiming benefits their resources will be taken into account to calculate how much they should contribute to rent/mortgage payments etc.

Could said GC live with father or could money be put into trust until they are 25?

It seems that the key thing is that the money is not accessible and therefore cannot be included when calculating benefit. I'd investigate trusts as Flickety has advised.

I would ask under what legislation the children's savings are being taken in to account.
Unfortunately I have lost contact with the person but I know money held in trust could not be taken in to account as it is not the property of the parent.
I know that some money invested in a term account in the child's name was not be taken in to account.
It had been invested for 5 years and the parent was back in work by the time the money matured.

Frank

Money in trust will not be considered but if savings simply consist of £x,ooo in a building society or bank they will.

It doesn't seem unreasonable to me that if someone, of any age forming part of a household claiming benefits has a large capital sum that should be taken into account. If a child has capital over the limit why should it not be used to pay for their keep rather than expecting the state to pick up the tab? Yes, a parent/grandparent/other person may want the money to go towards a house/education etc etc but once the child gets the money there is nothing to stop it spending it all on drink and drugs whatever the donor may have hoped for.

Thanks for the input everyone, I need more info from my daughter really the money has always been in the childs name a Acc that locks the money away for 5yrs . There was no will as the money was left to the childs father who was to pass some on to his child. Its not possible for her to live with him.
I will do some research into child ISAs or a trust as you advise. It would be nice if we could secure the money for her future.
Thanks FlicketyB I was beginning to think we were totally on the wrong track.

FlicketyB

I can see what you are saying.
I am not sure what would happen if a child had been left say £1,000,000 and he had total control of it ie he had to sign for withdrawals etc.
If the child just used it for his own keep and refused to give any of it to the family there could be problems.
In theory I suppose a child could inherit money and may not be obliged to tell his parents about it.

Frank

Just out of interest, if a child's own money is to be used for his or her upkeep, how would they separate money being spent on the child's food and housing costs from that of the rest of the family? Surely a child cannot be expected to feed and house her parents and siblings?

And can money that has already been given to a child be put in a trust fund? I know grandparents can set up a bare trust fund for grandchildren, but this money already belongs to the child. So she would be setting up a trust for herself. Is that possible?

And if you try to move money out of a family pot, wouldn't that be deprivation of assets?

Well, as in any other situation, people do not always do as the law expects them to do. In the olden days when university students received maintenance grants these were usually assessed on parental income and I knew several fellow students who struggled to manage on a very small grant because their parents did not make the payment they were expected to make when the Council made the assessment, and in most cases the parents could well afford it.

Its seems to be a minefield , hence my asking the question in the first place..
I will investigate further I think.

I think if the childs money is in trust and not accessible the money should be lent to the child and used for the family and the child should be liable to repay it when the son can access it.
If the money has to be signed for by the child he / she should be ordered by the court to do this.

Gerry

Gerry, you sound like you and Frank were separated at birth! Or were you.......hmmm.......!

Although I think Frank would want to protect the family assets at all cost, so perhaps he's Gerry's contrary twin?