Money and Savings at age 18 ?

[petet]

Hi, can anyone explain what happens to money that belongs to people who "lack mental capacity" when they reach age 18??

 

Our son is 17 and severely autistic and has no understanding of money but he has some savings that are currently held in 'joint accounts'.

 

What should we do?? We don't want it to affect benefits etc and we don't want to pay tax that we can avoid.

 

Any advice or good websites would be greatly appreciated .

 

Thx

 

PT

[Tally]

Hi PT. I don't know if anyone here is in a similar position. I think you really need an accountant or solicitor who specialises in this kind of thing. The CAB or a charity for carers might be able to advise you on how to find one or even recommend somebody. Sometimes there are people who provide specialist services for disabled people at below cost price.

[Kazzen161]

You do have to be careful. I think if the money is in a trust fund for him, it doesn't affect benefits, but savings might. Do you have Power of Attorney?

 

The NAS has a benefits advice line now - why not call them (or Mencap) and get some advise?

[warrenpenalver]

I know the standard figure for means tested benefits is anything under �6000 is disregarded and you are unlikely to get means tested benefits with over �16000 in savings.

 

There is a multitude of exceptions to consider for some specific benefits.

 

DLA is NOT means tested luckily.

[pearl]

Mencap have info on managing a disabled adults finances, including providing for the future by for instance putting your home in trust so it cant be sold to provide for his care. They also have a list of specialist solicitors.

[petet]

Thanks everybody for the advice... Looks like I need to investigate "Power of Attorney" and set up a trust fund.

 

I just am NOT looking forward to the burocrcay, form-filling and tax returns that I know I am letting myself in for .

 

Also, the last lawyer I engaged on his behalf was hopeless:

Tried to make me pay him for a Deed of Variation that would have been useless for avoiding income tax.

Didn't admit the problem until I read out the relevant section of the tax law to him.

Then said "sorry" and never talked to me again.

 

Just for anyone else with a younger child who has some money that DIDN'T come from the parents.

It was so simple when it was all his (as a child) and in a joint account with mum. The revenue allowed us to claim tax-free interest as if it was all his because we told them it was just a way of parents managing kids money.

Now that he's 17 it will probably count 50/50 as mum's income.

If the revenue challenges it .... which I suspect they won't.

 

Cheers!

[chris54]

Hi PT

 

A lot of parents have a joint account for their children's savings. All you do is go to the bank or building society and tell them that you want it but into the child's name only, job done.

 

Have you looked on Direct gov web site. Look up power of attorney.

As I understand it you do not need a solicitor if you know what you are doing to set up a power of attorney, but it would need to go through the courts as ? is not (I presume) able to make a considered judgment about signing.

 

Good luck with it all.

 

Chris

[caz2007]

Hi pt my mum is my Power of Attorney but my support work is helping me get my benifits in my name but stil have my mum there if i need it i have i saveing accment that was opened when i was born and it was jointed. all i could say when you think your son ready or if he never be ready for his own money for what i now it up to you after the age of 18 i did not get my own money saving i mean in till i was 21 but had help with all my savings.

 

does your son now he got savings?

 

take care good luck hope this is helped

 

caz

[lorryw]

My own bank was very unhelpful when we were trying to open an account for my sons direct payments.

I went to a well known building society (in tears after banks treatment). The staff were very kind, even made me tea, and we opened an account with me named as "trustee. We will investigate power of attorney but it seems very expensive and not many lawyers seem to know what they are doing.

[caz2007]

another thing i would say is that you need to go too bank that you now of.

[Tally]

I think you probably need a specialist solicitor. Have you had a look through the adverts in the NAS Communication Magazine, or something similar? Maybe the NAS, Mencap or a similar charity can recommend someone.