money in bank belonging to another person

He could put it into a trust fund for your child but this would need a solicitors involvement and would cost about £500 to set up

Not benefits related, but a transfer of cash of that size would almost certainly trugger the bank into asking loads of questions under the money laundering laws. The banks also report some things to the tax people, so any tax credits could be stopped instantly.

Is it fair to jepordiase the income support, some proof I would have thought would be needed but why doesnt the person open his own account i know this is possible check with bank

"this would need a solicitors involvement and would cost about £500 to set up"

No it doesn't. It's quite easy. All you need to do is to put something in writing from the donor to the trustee asking them to hold the money on trust for whoever the beneficiary is (be that the donor or someone else). (I've explained the words donor, trustee and beneficiary below.) To be on the safe side, get the letter witnessed.

A trust doesn't even need to be set up in writing, unless you want to be able to prove to someone you have done it.

An everyday example of a trust would be where Auntie gives her sister some money for her neice for her birthday. Auntie is the donor, sister is the trustee and neice is the beneficiary. We all understand that the money is only to be used for the benefit of the neice but that it is no longer the aunt's so she can't simply say "it's mine, give it back".

If you want it to look official to keep the DWP, HMRC etc happy, get a precedent off the net.

So just put it clearly in writing saying who's the donor (giving the money), who's the trustee (looking after the money) and who's the beneficiary (going to get the money) and put the money in a separate account.

"this would need a solicitors involvement and would cost about £500 to set up"

No it doesn't. It's quite easy. All you need to do is to put something in writing from the donor to the trustee asking them to hold the money on trust for whoever the beneficiary is (be that the donor or someone else). (I've explained the words donor, trustee and beneficiary below.) To be on the safe side, get the letter witnessed.

A trust doesn't even need to be set up in writing, unless you want to be able to prove to someone you have done it.

An everyday example of a trust would be where Auntie gives her sister some money for her neice for her birthday. Auntie is the donor, sister is the trustee and neice is the beneficiary. We all understand that the money is only to be used for the benefit of the neice but that it is no longer the aunt's so she can't simply say "it's mine, give it back".

If you want it to look official to keep the DWP, HMRC etc happy, get a precedent off the net.

So just put it clearly in writing saying who's the donor (giving the money), who's the trustee (looking after the money) and who's the beneficiary (going to get the money) and put the money in a separate account.