Can I open my son ISA account whilst in receipt of ESA/DLA

[chinesetopteam]

Hi all,

I remember a story where an individual on state benefit was taken to court/ because his child was given a large cash amount (£20,000), by the grandfather. And he argued in court the transaction was between the grandfather/ grandson and nothing to do with himself

I did not see the outcome, but my question is- I am disabled and receiving Esa support group/ and DLA high rate, would my payments be affected/ or get into trouble IF i were to open a child ISA account (which ONLY the child) can access once they reach 18 or 21 for my child.

Basically the grandfather (my dad) would like to pay monthly amounts into the ISA/ starting off with £1,000 untilhe retires in 3 yrs

Many thanks in advance

[reddivine]

your dads payinh the money in. Only your child can access it. So in no way is it your money. Make sure the account has your childs name on and if it needs a 2nd signature, let it be your dad.

[chinesetopteam]

Many thanks for the reply and advice. Sorry what do u mean by "second signature by my dad"? I'm assuming when I set up the account, it's my dad who sets it up and signs for it?

Absolutely, initially my dad told me he would give me the cash to pay in myself- into my son's ISA BUT I insisted it would have to be him. Perhaps bank transfer.... I handle his paypal account too so perhaps there's a way to transfer it over....

Many thanks again

[oimum]

If the child is under 7 all monies are deemed to be the parents, check with your bank.(although this may only apply if the parent is putting it in,not sure)
Your dad would probably need to open a separate account, is he really going to put in £1,000/ month?
I would advise you to check with the bank, a trust fund would prob he a better option.

[chinesetopteam]

The initial amount will be £1,000 followed by monthly payments of £100. If I do go for ISA child account I'm guessing there's a limit like the adult one (tax free). Yrs ago when I had one it was 3k limit.

Oh yes, reason why I decided on ISA is because I read ONLY the child can access it once they reach the age u selected 18/or 21

My son is 8yrs old

Many thanks

[oimum]

Unless it is a trust fund, there is nothing you can do to stop your child raiding the account when older!