Help re :money from Will

bing0

Hi there hope someone can help.

My mum is about to inherit approx £40k. She is 68 years old and has never had any money before so to inherit a sum like this it will change her life.

She has a small interest only mortgage of £12k (currently being paid by housing) and gets pension tax credit and council tax paid for. She doesn't want to pay off her mortgage as she has never had a lot of money. She would like to have a new kitchen and bathroom and go on a holiday. She is also giving away approx £5k to family.

Her question is that she doesn't want to declare the remainder as she doesn't want to lose her benefits. She knows that she can only have £6k in savings and wants to know if there is anything she can do.

Not sure if I could open an account for her and put the money in there as I get paid minimum rate working tax credit (£42.00 p.m.)

Is there anything you can suggest.

EdInvestor

Claiming benefits she is not entitled to would be fraud.

bing0

and what about the politicians ! don't get me wrong my mum has never done a wrong thing in her life and lets be honest even though this money will change her life a little it is not going to last her a life time !! She only gets about £100 p.m. in benefits and she is entitled to her pension. Its hardly the great train robbery !

Biggles

bing0 wrote: »

and what about the politicians!

I suppose saying, "Two wrongs don't make a right" wouldn't help?

Its hardly the great train robbery !

But it would be robbery.

The best advice (by a long way) would be to pay off the mortgage and invest the rest to bring her some income. There's no reason to get excited and give thousands away to family and to start changing her whole house, it can still change her life. She just needs to do what she's always done and prioritise her money.

margaretclare

Biggles wrote: »

I suppose saying, "Two wrongs don't make a right" wouldn't help?

But it would be robbery.

The best advice (by a long way) would be to pay off the mortgage and invest the rest to bring her some income. There's no reason to get excited and give thousands away to family and to start changing her whole house, it can still change her life. She just needs to do what she's always done and prioritise her money.

I think, in her position I would first and foremost pay off the mortgage. That would leave her £28K. She could have a new kitchen and bathroom - that would be a good use of money, bearing in mind that no one is getting any younger and it might be better to have more convenient and easy-to-use surroundings. And she can still go on holiday. That would be my first thoughts, but the very last thought would be to give away thousands! She doesn't know what she may need in years to come, and it would be better to have a little bit of a nest-egg behind her. She can still claim pension credit even if she has £10K in savings - the amount recently changed.

bing0

Biggles you are absolutely right "two wrongs do not make a right" but there are so many people in this country who do it! Can you suggest any investments ideas. As far as not going mad - trust me she has never had any money to do anything with and she desperately needs a new bathroom and kitchen. She lives in a very small two bedroom house and since my dad divorced her 15 years ago she has never had any more to do anything to the house. He's alright - set up a gorgeous home with his secretary in a £500k detached house overlooking the sea and there she is a rabbit hutch !! What with the immigrants and policitians - it just makes me angry !!!

bing0

any way how would anyone find out ?? if i opened an account for her??

anmarj

bing0 wrote: »

Hi there hope someone can help.

My mum is about to inherit approx £40k. She is 68 years old and has never had any money before so to inherit a sum like this it will change her life.

She has a small interest only mortgage of £12k (currently being paid by housing) and gets pension tax credit and council tax paid for. She doesn't want to pay off her mortgage as she has never had a lot of money. She would like to have a new kitchen and bathroom and go on a holiday. She is also giving away approx £5k to family.

Her question is that she doesn't want to declare the remainder as she doesn't want to lose her benefits. She knows that she can only have £6k in savings and wants to know if there is anything she can do.

Not sure if I could open an account for her and put the money in there as I get paid minimum rate working tax credit (£42.00 p.m.)

Is there anything you can suggest.

if she has Pension Credit you need to find out if she has assessed income period set, if so and was it set from her being 65 then it does not need to be declared until her next review, only then will she have to declare what she has. If she does not, she needs to find out if she should of had one set. if for some reason she cannot get an AIP then she would have to declare the money, to me kitchen bathroom paying mortgage under Pension credit is generally acceptable, if she gave money away then that CAN be classed as deprevation but with that amount she may not be entitled to Pension Credit anyway.

If she does not delcare and then found out, she would have to pay back the money and only would it be Pension Credit but if she gets housing and council tax all that would have to be paid back. Information IS passed between departments ie Inland Revenue and Pension Credit for example, so it would be picked up. She is far better to be up front and delcare and see where the situation takes her. She is doing herself no favours by trying to hide it.

McKneff

are you seriously coming on here and asking us to help you (your mum)
to commit fraud.

She doesnt want to lose her benefits - if she has this much money she is not
actually entitled to benefits, hence no different to any other benefit fraudster.

Errata

Is there anything you can suggest.

Why on earth do you expect people to make suggestions about how your mother can commit benefit fraud ?

busiscoming2

margaretclare wrote: »

I think, in her position I would first and foremost pay off the mortgage. That would leave her £28K. She could have a new kitchen and bathroom - that would be a good use of money, bearing in mind that no one is getting any younger and it might be better to have more convenient and easy-to-use surroundings. And she can still go on holiday. That would be my first thoughts, but the very last thought would be to give away thousands! She doesn't know what she may need in years to come, and it would be better to have a little bit of a nest-egg behind her..

I agree wholeheartedly with this!.