Income Support & an inheritance

metoyoubear

In this scenario,a relative is due to receive some monies left to him in a will,he is currently receiving Income Support,what generally happens,does the IS get reduced/stopped if he is left say twenty thousand.

Is there a criteria when it does and doesn't affect your IS,is there a threshold etc?

TIA

dmg24

If he receives £20,000 IS will cease, as he will be above the £16,000 savings limit.

metoyoubear

I put that amount(20k) as he doesn't know how much he is getting yet,if it's less than that do the DWP take money from your benefit because you've inherited money?

TIA

dmg24

Anything over £6,000 will lead to a deduction of £1 per week for each £250 (or part thereof). Once capital reaches £16,000 entitlement ceases altogether.

metoyoubear

Ok,thank you very much for your help,that's very informative.

metoyoubear

Although i'm a little confused now,if he received over 16k and his benefit is stopped,what happens then,do you claim it again once you have spent the money for example ?

He's made an appointment at the CAB but i said i would ask here in the meantime.

dmg24

Yes, he can reclaim once his capital levels fall below the required levels. However, any spending must be reasonable - he cannot spend the money on anything just to fall back within the limits.

TaxPayingMug

metoyoubear wrote: »

In this scenario,a relative is due to receive some monies left to him in a will,he is currently receiving Income Support,what generally happens,does the IS get reduced/stopped if he is left say twenty thousand.

Is there a criteria when it does and doesn't affect your IS,is there a threshold etc?

TIA

I should certainly hope his benefits cease.
Why should the taxpayer support someone with £20K in the bank.