Advice needed about inheritance, pensions and J.S.A

Rabbitx

Hello, I have just been made redundant, am 47, have been struggling all my life, have no mortgage, no pension, but I do own my own bed and have debts amounting to nearly £4000. I am expecting to inherit around £30,000, which is of course a wonderful gift. I'm very worried though, because if left in the form of savings, I won't be eligible for any benefits, and in the current climate, the chances are that they will whittle away quickly, unless I find permanent employment quickly. This cannot be guaranteed. I don't think I'm going to be able afford to get on the housing market, even with the ability to put down a good deposit. If I did have the chance to invest this in a one bed flat, with tenants helping to pay off the mortgage, yet I stayed in the rented accomodation I am currently in, would this still make me ineligible for benefits. I would really like to keep this as security for the future.

cw18

you can't own one property and take rent from that as income while claiming benefits. unless the legacy has been left in a trust fund that stipulates you can't have the capital at an age older than you are or can only be used in certain ways (such as property investment) should you spend it, then there's no way out of it.

Rabbitx

Thankyou. Could anyone also advise whether I have done the right thing in declaring that nobody owes me any money on HB and JSA claim forms. The inheritance is tied up in property which has to be put on the market, and will be distributed once sold. This could take a long time. Am I legally right in thinking I haven't inherited it yet, or could I have the DWP and council making a claw back in the future.

cw18

It's possibly worth giving them a call to check, but I'd say that as you don't yet have the money in your [STRIKE]grubby mitts[/STRIKE] bank account they can't possibly expect you to be living off it !!!

Rabbitx

Thankyou, I think you must be right. It is effectively in trust at the moment, with the executors of the will. Perhaps I could look into shared house purchase schemes, though that sounds like a minefield to me, and maybe risky.