Inheritance and benefits

shadyone

My mum passed away and her house is to be sold and split between me and two other siblings. After the mortgage is paid off we may receive about £25k each but I am on benefits (WTC and also Housing and council tax benefit).
We have children I would like to save for and also save for our future.

My question is what do I do? I think we are allowed up to 16k for the HB and CTax benefit, what are we allowed to be still eligible for WTC? Can I put some in my youngest child's name for university, does that still get taken into consideration?

I have an ISA and so does my husband, benefits know this so anything we have gets added to this.

Do I just blow it as it all seems so confusing!

Oldernotwiser

Any savings over £6,000 will affect HB and CTC on a sliding scale up to £16,000, when benefits will stop. You will need to add your ISA and other savings to the £25,000 to get your total.

Giving money away is likely to be seen as deprivation of capital (as will blowing it all!) and your benefits will be assessed as if you still had the money. I'm afraid I don't know the answer to the question of WTC.

shadyone

Thanks for that, so what do you think the best thing to do is?

Hungerdunger

Can you explain why your friends and neighbours should help to subsidise your Housing and CT Benefits when you are in a position to pay them yourself?

shadyone

Good point, but it is more complicated than I have explained.

Hungerdunger

shadyone wrote: »

Good point, but it is more complicated than I have explained.

If you could list the complications, perhaps you could receive better advice.

amcluesent

> split between me and two other siblings<

How much do you trust them? If you do, they could take the bulk of the inheritance and hold it in a bond for when your children go to uni.

opinions4u

shadyone wrote: »

My mum passed away and her house is to be sold and split between me and two other siblings. After the mortgage is paid off we may receive about £25k each but I am on benefits (WTC and also Housing and council tax benefit).
We have children I would like to save for and also save for our future.

But the money was left to you, not to your kids. Other readers in similar positions should consider writing wills that set up trusts for grandchildren in similar posiitons. Good legal advice is appropriate before doing this though.

My question is what do I do? I think we are allowed up to 16k for the HB and CTax benefit, what are we allowed to be still eligible for WTC? Can I put some in my youngest child's name for university, does that still get taken into consideration?

It's a question better asked on the Benefits part of the forum.

I have an ISA and so does my husband, benefits know this so anything we have gets added to this.

Benefit linkiy again.

Do I just blow it as it all seems so confusing!

What? You mean deliberately waste money so that the taxpayer can subsidise your lifestyle? Are you an MP?

If you have debts you could consider repaying them.

Milarky

It's probably better to consider loss of Housing Benefit (since capital will exceed 16k absolute cut off) as a given, and to concentrate on how to make the best of the rest.

WTC/CTC are not directly affected by receipt of capital - just the income it actually produces. So £25K is only generating about 2% or £500 these days - and the first £300 is ignored anyway. Potentially then, £25K capital reduces WTC/CTC by a mere £80 a year. Thus, the only effective loss is of Housing Benefit.

(CTC still 'passports' claimants onto other things - as it still counts as 'means tested' as I understand.)

Finally, is there a 4 week grace period with Housing Benefit - when 'circumstances change'?

Oldernotwiser

amcluesent wrote: »

> split between me and two other siblings<

How much do you trust them? If you do, they could take the bulk of the inheritance and hold it in a bond for when your children go to uni.

Deprivation of capital again!

jennihen

Hi!
I'm in a similarposition with regards to inheritance - my mother has expressed a wish that 'my' share was placed in trust for my children in a letter but due to a very complex situation a court ruled that all 3 remaining girls inherited an equal share.
I made an appointment at the job centre and and went through a review of all my options. The outcome was really helpful but basically I was advised to keep all receipts to show in the future that I haven't disposed of my assets in a reckless manner. Settle all your debts and stick to a similar budget that you are on now.
Sadly an inheritance of this size is not a windfall. Sorry about your mum.