Benefits effected by inheritance

[Sooboo]

Hi as a trustee of my sisters will we have to give a 10years old child £50k, she has her own savings account. Her mother is single and on several benefits. She is panicking that this amount, given to her daughter, will effect these benefits. I seem to think if this money goes into a trust for the child until the age of 18 it won’t effect the mother and her benefits. Can anyone help/confirm please. Tia

[des8]

No - money held in a child trust fund will not affect any benefits or tax credits,

If you want to wade through the regulations here's a link to the Decision maker's Guide Decision makers’ guide: Vols 4, 5, 6 and 7: Jobseeker's Allowance and Income Support: staff guide - GOV.UK (www.gov.uk)

PS a child cannot inherit money.. it will have to be put in a trust for her until she is 18

[Wylderose]

Money held in a trust fund for your sister's daughter will not affect her benefits. It will however affect her benefits if your sister's name appears on the trust fund statements as a trustee or as the owner of the bank account taken out because the child cannot legally have an account, as she would be deemed to have the money at her disposal.