Investing Money

[Twirly00]

My husband and I are separating and our house is to be sold with the proceeds split. I am currently a full time carer for our disabled child so as I am not currently employed I cannot get a mortgage. I plan to rent but the money from the house sale will prevent me from claiming benefits, and I am concerned at using this money to pay rent as it will slowly dwindle itself down.

I do plan to buy a property eventually when I'm in a better position rather than throwing away all my money on rent, so could I invest my money in a high interest account (perhaps in my daughter's name) to bring myself below the threshold for claiming benefits, or would this money always be taken into account?

Are there any specific types of accounts that I could invest this considerable sum of money in to gain the most interest?

Thanks :)

[lady_p_gold]

Just out of interest have you both just agreed to split the proceeds? You do not say how much equity is in the property but are you sure you are getting a proper settlement in view of the fact that you have a disabled child to house and care for ???

[Twirly00]

Yeah, we have agreed a 60/40 split - I know I'm letting him away with murder but to cut a long story short he was being very awkward and in the end I just had to get away from him and get on with my life. It's all agreed legally now anyway, and at the end of the day he'll live to regret not caring about the future and wellbeing of his child.

My priority is making the best of a bad situation and giving my child the best life possible in these circumstances (which is why I want to put this money aside).

[lady_p_gold]

Well if it is all agreed then sobeit, however I would have thought you would have been able to stay in the house and keep most of it, and there is his pension to think about. However, sometimes it is best just to draw a line in the sand and reading between the lines you sound as if you have the love and determination to do it, so good luck. What you should do is pop along to the council and have a chat with them in the benefits section, and I am sure they would be able to advise you.

[WoWo]

"so could I invest my money in a high interest account (perhaps in my daughter's name) to bring myself below the threshold for claiming benefits"

So you want to fiddle the benefits system then?

[Twirly00]

I don't really like what you're insinuating - can you not see that if I use this money (money I will never see again) on paying a high private rent every month then I will have nothing left by the time I am eligible for a mortgage.

I have never broken the law or fiddled any system in my life, nor do I intend to. But I do intend to put away this substancial sum of money for my daughter's future. Read into it what you will, but please try and understand my predicament.

[WoWo]

I'm not reading anything in to it. You clearly said in blank and white.

"so could I invest my money in a high interest account (perhaps in my daughter's name) to bring myself below the threshold for claiming benefits"

This would be done with the express purpose of claiming benefit you would not be entitled to. You can dress it up how you like it would still be benefit fraud.

[themas]

I can very much sympathise with you, but I'm afraid WoWo is right. If the money is yours and you put it into your daughter's name and then claim benefits it will be regarded as "deprivation of capital" and your claim won't succeed (or, if you don't declare it and get benefits, it could be treated as fraud if/when it was found out).

[Twirly00]

No - you're reading it completely wrong.

My intention is not to claim benefits. My intention is to put away some money for the future.

I do not have an income and so I am entitled to benefits. The only thing that would stop me would be those savings but I'm planning to invest them for the future.

I have about �600 a month coming in and my rent is �500. Never mind all my other expenses. You work it out whether I am entitled to benefits or not based on this.

I am not going to be made to feel like I'm fiddling any system. I cannot live on the money I have coming in and the capital from the house I am not going to use to pay rent month after month. No matter what you, or anyone thinks, I am putting it into another account so I do not spend it and I can use it to give my child a better future.

It's just a shame no one has answered my initial question of what type of account I'd be better putting the money in. I did think it was a money and finance advice board and not what it has turned out to be - people accusing me of fraud because I want to put some money away.

[Twirly00]

I should have said -

"This would be done with the express purpose of claiming benefit you would not be entitled to."

You really haven't listened to a word I've said have you? The 'express purpose' is saving this money for the future. My only thought was I'd be entitled to benefit because I don't have much money coming in because I am not working. Not working = entitled to benefit.

[themas]

I'm sorry, but we have not got it wrong. "Not working = entitled to benefits" is not necessarily the case for means tested benefits. The one you are referring to is Housing Benefit and to get that, in addition to limits on your income, there are limits on the amount of your savings. If your savings are more than �6000 the benefit is gradually reduced on a sliding scale until it is stopped entirely if your savings are more than �16000. This applies even if you have no income at all. You can check this by asking your local council housing benefit section.

My comments were motivated only by a wish to try and prevent you running the risk of having serious problems in the future.

If you go to www.moneyfacts.co.uk you can find information on what they regard as best buy savings accounts in different categories. Generally speaking, if you want immediate access to your money internet accounts from firms such as Bradford & Bingley or Yorkshire Building Society may be quite a good option.