inheritance affecting benefits

fragfesty

My partner and I have two children and are both receiving income support,tax credits,council tax and housing benefits. A family member died recently and I am to inherit approx £13,000. I read somewhere that you can have up to £6,000 without effecting benefits but that this is reduced by £1 for every £250 over that limit. Are these figures still accurate? and are the £6,000 savings allowed per person or per couple??
Also, can the 'excess' money be held in the executors acccount so that I dont actualy receive it??

Thanks!

dazzadub

as far as im aware its a couple if joint claim, there are ways and means of dealing with the money.

tomitma

The £6,000 is per couple, this will affect all of the benefits that you are receiving at the moment, especially Housing benefit and council tax.

Due to changes in the Government, you can no longer hide the money, as checks are done on all new bank/building society accounts being opened. To check that the person is not receiving means tested benefits. Also if you deposit a large amount of money into a bank account that has been opened for a while. I doubt that it can be held in the executors account as once they have done the job the account is closed.

It looks like if you want to do every thing legally, you will soon be paying your own rent and council tax, also income support will be reduced as this is also means tested. Sorry.

dmg24

Why would you want to not receive money that is rightfully yours? I am so sorry for your loss, but the silver lining is that you will now have a period where you will not be so reliant on state handouts.

dmg24

tomitma wrote: »

It looks like if you want to do every thing legally, you will soon be paying your own rent and council tax, also income support will be stopped as this is also means tested. Sorry.

IS will not be stopped, but will be reduced.

tomitma

dmg24 wrote: »

Why would you want to not receive money that is rightfully yours? I am so sorry for your loss, but the silver lining is that you will now have a period where you will not be so reliant on state handouts.

I would feel quite chuffed with myself, to be able to come off benefits, and pay my own way, for a while, 13,000 is almost a years wages for some.

Indie_Kid

Tax credits will only be stopped if the taxable interest is £300 or more per year.

fragfesty

Does anyone know the rate at which housing and council tax would be reduced based on the £13,000? or the limit at which its stopped altogether? This is getting worse by the second!
Another beneficiary, also on income support etc, is to receive the same amount as myself, but is to be paid £100pw by standing order out of the executors account in accordance with the will, if the money is not received in a lump sum, would this make a difference to the reductions in benefits?
Thanks for your replys, although its not good news, its always better to know what your heading for!

tomitma

Your benefits will STOP once you put the money into your bank, all large amounts of money are now checked for money laundering, and cross checked with the DWP, The person who is getting the 100pw, will have to explain where the 100pw is coming from, the banks and DWP will find out, you cant hide money any more.

The benefits you are recieving aka, housing benefit, council tax, will stop (it wont be reduced, it will STOP) as soon as you have 6,000 in the bank, they will want proof of where the money come from, to be honest I really cant see you getting income support either, as 13,000 is a years wages, and they will class the money as this, even going out and getting rid of the money, by buying a car or a new kitchen will be penalised, as they will think that you are hiding the money from them.

OrkneyStar

fragfesty wrote: »

Does anyone know the rate at which housing and council tax would be reduced based on the £13,000? or the limit at which its stopped altogether? This is getting worse by the second!
Another beneficiary, also on income support etc, is to receive the same amount as myself, but is to be paid £100pw by standing order out of the executors account in accordance with the will, if the money is not received in a lump sum, would this make a difference to the reductions in benefits?
Thanks for your replys, although its not good news, its always better to know what your heading for!

You are set to inherit £13000 and you think things are getting worse :eek:.
Why don't you want to use your own money to pay your way ?
I am confused!
You mention neither of you work...perhaps some of this money could be used toward getting at least one of you into work...is there a reason why you don't want to work (other than finding it difficult to find a job) ?

DX2

tomitma wrote: »

I HAVE JUST BEEN TOLD THAT EVEN IF YOU PUT A LOWER SUM INTO THE BANK IE: 3,000 YOUR BENEFITS WILL BE REDUCED, AT 6,000 THEY WILL STOP.

Really? Wonder where you got this gem from :rotfl: