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Best Method For Securing Your Hard Earnt Savings In Event of Redundancy


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Looking for "legal" ideas or suggestions on how best to secure the value of your savings, intended as a future house deposit, to avoid monetary erosion through being un-entitled for benefit support.

Lets be honest, the rich have been using tax exemption scenes to achieve the same objective for a long time!

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I don't know of any good ones.

If you pay it all down but not all in one go, into a private pension then at least you'll be able to cope with a mortgage that goes beyond retirement.

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If you had a mortgage I would say pay that down and use payment holidays to 'access' it.

If not, how about bonds that you can't cash in on for a year? They aren't savings I would say as you can't access them at any time.  

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15 minutes ago, nightowl said:

 

If not, how about bonds that you can't cash in on for a year? They aren't savings I would say as you can't access them at any time.  

I'm pretty sure HMRC wouldn't see it that way.

 

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13 hours ago, Blink said:

Lets be honest, the rich have been using tax exemption scenes to achieve the same objective for a long time!

That's the point, they are for the rich not for you.

Otherwise, you'd be buying houses using off the shelf companies registered offshore, claiming tax relief using IR35 shell companies and sending inheritance via Trusts.

If everyone did it, it would be illegal.

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I think for JSA and UC they ask about about savings over £6k (it might be more elaborate than that). 

Converting cash to assets such gold jewellery or shares might not be 'savings' either. There are risks in that they may not hold value though and there may be commission to pay on sale.

Ps I'm not 100% sure just suggesting ideas.

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8 minutes ago, nightowl said:

I think for JSA and UC they ask about about savings over £6k (it might be more elaborate than that). 

Converting cash to assets such gold jewellery or shares might not be 'savings' either. There are risks in that they may not hold value though and there may be commission to pay on sale.

Ps I'm not 100% sure just suggesting ideas.

What counts as savings?

Savings are counted as any money you can get hold of relatively easily, or financial products that can be sold on. These include:

  • cash and money in bank or building society accounts, including current accounts that don’t pay interest
  • National Savings and Investments savings account and Premium Bonds
  • stocks and shares
  • property, which is not your main home.

Under certain circumstances, other properties you own, which you don’t live in, might be disregarded. You can find out more at EntitledTo.co.uk.

Other savings and capital are disregarded including:

  • personal possessions, such as jewellery, furniture or a car
  • value of any pre-paid funeral plans
  • life insurance policies which have not been cashed in
  • insurance claims will be ignored for six months if used to replace or repair.

https://www.moneyadviceservice.org.uk/en/articles/how-do-savings-and-lump-sum-pay-outs-affect-benefits

 

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Deprivation of assets

You are not allowed to intentionally reduce your assets or savings to increase the amount you get in benefits. The Department of Work and Pensions (DWP) calls this deprivation of assets.

Deprivation of assets can include:

  • giving away money
  • transferring ownership of a property
  • buying possessions which are excluded from means testing, for example cars and jewellery.
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24 minutes ago, Si1 said:

Deprivation of assets

You are not allowed to intentionally reduce your assets or savings to increase the amount you get in benefits. The Department of Work and Pensions (DWP) calls this deprivation of assets.

Deprivation of assets can include:

  • giving away money
  • transferring ownership of a property
  • buying possessions which are excluded from means testing, for example cars and jewellery.

Taking out large amounts to spend on your coke habit is ok?

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There used to be a loophole for people inbetween selling and buying a new house with the money intended for the new one. Can't find the smallprint to see if it still exists 

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Those help-to-buy ISAs that Martin Lewis is always banging on about?  The DWP surely can't take into account a future bonus that you have not received yet?

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15 hours ago, Blink said:

Looking for "legal" ideas or suggestions on how best to secure the value of your savings, intended as a future house deposit, to avoid monetary erosion through being un-entitled for benefit support.

Lets be honest, the rich have been using tax exemption scenes to achieve the same objective for a long time!

buy a classic car etc? But my vague recollection of past discussions is that they have rules about things bought X months before you claim to counter exactly such tactics and hence can force you to sell things. So you need a lot of foresight to keep it safe.

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6 minutes ago, kzb said:

Those help-to-buy ISAs that Martin Lewis is always banging on about?  The DWP surely can't take into account a future bonus that you have not received yet?

You can't open a HTB ISA anymore. Lifetime ISA yes. Which brings an extra problem

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4 hours ago, Si1 said:

Deprivation of assets

You are not allowed to intentionally reduce your assets or savings to increase the amount you get in benefits. The Department of Work and Pensions (DWP) calls this deprivation of assets.

Deprivation of assets can include:

  • giving away money
  • transferring ownership of a property
  • buying possessions which are excluded from means testing, for example cars and jewellery.

?

highly unlikely to be found out over a long period.  

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Own a £3m house outright - perhaps you inherited it 20 years ago - but have £10,000 cash savings - welfare and benefits galore.

Have £30,000 in a bank account - and rent - and you get nothing even though the person above is worth 100 times more than you are wealth wise until you reach the savings cap.

Can't expect the £3m homeowner to downsize to release cash - but you must use your savings to live!

An extreme illustration but shows how rotten our system is!

Edited by MARTINX9
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3 minutes ago, MARTINX9 said:

Own a £3m house outright - perhaps you inherited it 20 years ago - but have £10,000 cash savings - welfare and benefits galore.

Have £30,000 in a bank account - and rent - and you get nothing even though the person above is worth 100 times more than you are wealth wise until you reach the savings cap.

Can't expect the £3m homeowner to downsize to release cash - but you must use your savings to live!

An extreme illustration but shows how rotten our system is!

Hear hear

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19 hours ago, Blink said:

Looking for "legal" ideas or suggestions on how best to secure the value of your savings, intended as a future house deposit, to avoid monetary erosion through being un-entitled for benefit support.

Lets be honest, the rich have been using tax exemption scenes to achieve the same objective for a long time!

Perhaps you do not have to worry about this?

If you have two years of national insurance contributions, then you have a six months grace period where you can claim jobseekers allowance without savings being taken into account.

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1 minute ago, GodlessEndeavor said:

Only if you want to live there, since property which is not your main home counts as savings.

OK cool. How about if it's a boat or a caravan? I guess maybe for certain boats, no for a caravan/ campervan. "Fixed abode" the key term

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1 minute ago, NuBrit said:

Perhaps you do not have to worry about this?

If you have two years of national insurance contributions, then you have a six months grace period where you can claim jobseekers allowance without savings being taken into account.

https://www.gov.uk/guidance/new-style-jobseekers-allowance

Quote

New Style JSA is a contribution based benefit. Normally, this means you may be able to get it if you’ve paid and/or been credited with enough National Insurance (NI) contributions in the 2 full tax years before the year you’re claiming in.

If you qualify, you can get New Style JSA for up to 182 days. After this your work coach will talk to you about your options.

....

You can apply for New Style JSA – even if your partner works or you and your partner have savings over £16,000.

 

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