Help re :money from Will

m_13

roy62 wrote: »

If you get Pension Credit and are aged 65 or over and you come into money you do not have to tell the DWP for five years after your income was last assessed.

Really? Not what is says on direct.gov.uk. Note also that capital disregard has increased to £10,000. OP says his mum also gets council tax benefit and her mortgage paid so more than pension credit to consider.

Income that is counted towards Pension Credit
The amount of Pension Credit you get depends on how much money you have coming in each week and how much you have saved or invested.
The following types of income are taken into account when calculating your Pension Credit:

• State Pension (including basic State Pension and additional State Pension)
• occupational and private pensions
• most social security benefits like Carer's Allowance
• £1 a week for every £500 (or part of £500) of 'capital' you have over £6,000 (capital includes savings and investments, and property that's not your main home)
• £1 a week for every £500 (or part of £500) of 'capital' you have over £10,000 if you live permanently in a care home
• earnings after tax and expenses from employment or self-employment, less half of any company or personal pension contribution you make

In this year’s budget the chancellor announced that the £6,000 capital disregard will be increased to £10,000 for all from 2 November 2009.
If you have a partner you and your partner’s income and capital will be added together when calculating your Pension Credit.
The term ‘partner’ refers to your husband, wife or civil partner, or the person you live with as if they were your husband, wife or civil partner.
If you are a self assesment tax payer

The amount of State Pension you get affects the amount of Pension Credit you can be paid. State Pension is taxable so you must tell The Pension Service about your actual or forecast Income Tax liability. Income Tax liability is the Income Tax you will pay or expect to pay. This helps ensure you are getting the correct amount of Pension Credit.
Find out more about Income Tax:

• Income Tax - the basics

Income that is not counted towards Pension Credit

Income that is not counted towards Pension Credit includes:

• Attendance Allowance
• Christmas Bonus
• Disability Living Allowance
• Housing Benefit
• Council Tax Benefit

Further information is available on the following benefits:

• Attendance Allowance

• Christmas Bonus

• Disability Living Allowance - introduction

• Housing Benefit

• Council Tax Benefit

You can still get Pension Credit if you are living with your family. The Pension Service look only at your income and not at theirs. Also you can still get pension Credit if you own your own home: the home you live in does not count towards your ‘capital’.

What to do if your circumstances change


If your circumstances change, for example your capital goes up or down, you should contact The Pension Service who will be able to look at your claim again to make sure you are getting the right amount of Pension Credit.

• Contact The Pension Service

chesky369

You're right M13; I think the misunderstanding comes from the fact that if people notify the authorities of a change of circumstances, very often it has no immediate effect - particularly if you're in the middle of a five-year pension credit period. However, this does NOT mean you should not tell them - and not to inform them of any change is a potential fraud.

margaretclare

Also you can still get pension Credit if you own your own home: the home you live in does not count towards your ‘capital’.

Maybe the OP's mum doesn't want to pay off her mortgage because she is under a misapprehension about this point.

Davey2009

Maybe it is human nature that the first hint of getting money people get greedy & want more or want to hide it, but still even in this seemingly corrupt world honesty really is the best policy -
I hope your Mums windfall brings her lots of happiness :-)

petersandyglen

HONESTY IS THE BEST POLICY, Remember that taking all these benefits when not entitled to them is robbing the honest taxpayers. We can only hope the M.Ps and top bankers who live fraudulent lives will be brought to book. Theres no way anyone with that amount of money should ever need benefits again. Peter.

pollypenny

Like others, I find this request astounding, Bingo.

£40,000 is a tidy sum - I wish I'd inherited half that. Why on earth would your mother want a £12,000 debt hanging over her? Oh, yes, we pay it for her, don't we.

The rest of the family would be immoral and culpable if they accepted a large sum, such as £5,000 from her.


Keeping and investing her money, even in an ordinary savings account, would probably give her the chance to treat the family to a meal or presents from time to time.

Biggles

m_13 wrote: »

Really? Not what is says on direct.gov.uk.

Your award letter refers to Leaflet INF4(PC), which states that during an Assessed Income Period you don't need to report 'changes to your pensions, savings or investments unless it means you may get more Pension Credit'. I believe the AIP is usually five years from the date of the assessment.

anmarj

roy62 wrote: »

If you get Pension Credit and are aged 65 or over and you come into money you do not have to tell the DWP for five years after your income was last assessed.

it only applies if you have an Assesed Income Period set, AND there are certain circumstances where it cannot be given,

Savvy_Sue

Whether or not mum decides to pay off the mortgage, now is the time to look at whether this home is 'fit for purpose' for the foreseeable future and beyond, and if not to do something about it!

A really well laid out bathroom and kitchen will help mum stay independent, but if the house is basically a nightmare for anyone with mobility problems that can't be sorted, then seriously considering a move would be a good plan.

hethmar

I can understand you mum may feel she wants to hang on to the security money would offer her in the future but as posters have pointed out above, she could instead end up in deep water. The neighbours are bound to notice she is suddenly getting new furniture, kitchen and going on hols. How long before one of them decides to sneak on her?