inheritance money due, how can i spend it???

leecooper

Hi Everyone,

I have 2 children and am a lone parent receiving benefits. I am due to get some inheritance money over the next couple months in the region of £15,000, i have queried the job center on what is due to happen to find out where i stand, but i am unclear of a few things, i have some debt and home improvements i need to make and also would like to get a car to make work prospects a little easier once both children are at school, these are all things i view as doing to better my childrens lives. Are these things acceptable to do with the money, i am not wanting to flutter it all away and am quite happy to receive the reduced IS rate for as long as needed, i would just like some clarification as certain sites make it sound like these things could be classed as deprivation of capitol. And in my eyes it will not be like im living luxury im just making life a little better. Would be grateful for anyones views, thankyou,

Leecooper

DX2

It wouldn't only be your IS that would be reduced, it may well reduce your HB (LHA)

suelees1

Paying debts which are not actually lawfully due could be seen as deprivation of capital but it's not clear cut so don't take that as a blanket policy.

Apart from that any purchases/expenditure which is seen a reasonable is acceptable. Just don't go buying a Masserati or a round the world cruise! Reaonably priced cars and holidays are fine though as are home improvements

The DWP looks at what the actual intent and if they consider you've deprived yourself of capital in order to claim or increase benefits then they might consider it as deprivation.

Don't foget the lower limit is £6K so as soon as you are below this it won't affect your benefits

vaporate

People will take a dim view of this, but considering they are not in your situation...

You could just not tell them, which does not run the risk of your benefits being cut. However, being found out runs the risk of fraud, legal action.

Considering its 'inheritance' and not work on the side, I would keep it at home under the floor boards and not declare. But that is me.

Certainly not advice by any means, just what I would do.

AnxiousMum

Vaporate - lovely advice

If the OP was to do that, it would be one quick phone call to the fraud hotline from a jealous neighbour to report her living above her means.....and she'd very likely be caught and done for fraud.

I haven't seen any clear cut rules on deprivation of capital - however, if you can support yourself with your own money, then do you have a need for also claiming benefits? Benefits are meant for those who have no other recourse to funds to provide for them and their family.

leecooper

Thankyou for your comments, i must admit im quite a goody goody and would never try and beat the system which is why i am thankful for the advice, i never dreamt of ever getting this kind of money and life has been pretty hard for me and my children so to better our futures would be a bonus .

chesky369

I think if you bought yourself a reasonable car, that wouldn't be a problem. If you have credit card debts or debts which are being added to with interest, then although they're not priority debts, then paying something off them would actually help save you money. Just don't go mad and have a good reason for everything you do spend.

alwaysonthego_2

chesky369 wrote: »

I think if you bought yourself a reasonable car, that wouldn't be a problem. If you have credit card debts or debts which are being added to with interest, then although they're not priority debts, then paying something off them would actually help save you money. Just don't go mad and have a good reason for everything you do spend.

Paying off non-priority debt would be seen has deprivation of capital and the op will be treated has having notional income. The op could pay the minimum amount from his savings that would be seen has being reasonable. The op should ask the DWP for advice before spending his money.

Oldernotwiser

And, of course,you can have 6,000 of savings without it affecting your benefits.

Macro_3

chesky369 wrote: »

I think if you bought yourself a reasonable car, that wouldn't be a problem. If you have credit card debts or debts which are being added to with interest, then although they're not priority debts, then paying something off them would actually help save you money. Just don't go mad and have a good reason for everything you do spend.

I agree with that - as long as the purchases are reasonable, the DWP would have to demonstrate that your main motivation for spending the money was to increase your entitlement to IS.

Vaporate - the DWP run data matching exercises with probate records, so I wouldn't recommend hiding the inheritance.

DX2 - HB would only be affected if IS were to stop completely, which won't happen unless the op has another income which also reduces IS.

missmontana

Could you ask for some of the money to be put in a fund for your children, in their names, for when they reach 18 or 21?