We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
inheritence and benefits
bigjluk
Posts: 178 Forumite
my friends just inherited 20k,he is on benefits of jsa,and part of his rent paid.he has been told if he has 8k or more in savings they will stop benefits,is this true,and what can he do to avoid this happening(apart from getting a job,of which he is trying,but lives in a extremely high unemployment area.)
0
Comments
-
He has to declare this money, no way around not declaring.my friends just inherited 20k,he is on benefits of jsa,and part of his rent paid.he has been told if he has 8k or more in savings they will stop benefits,is this true,and what can he do to avoid this happening(apart from getting a job,of which he is trying,but lives in a extremely high unemployment area.)*SIGH*
0 -
He declares. He uses that money to live on until it gets low (below £6k). Then he can start claiming benefits again, if he hasn't found work by then.
He could always use some of it to relocate to an area with more job opportunities.:heartpuls Mrs Marleyboy :heartpuls
MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remote
Proud Parents to an Aut-some son 0 -
Not another one!0
-
It's 16k where all benefits stop.Sealed pot challenge #232. Gold stars from Sue-UU - :staradmin :staradmin £75.29 banked
50p saver #40 £20 banked
Virtual sealed pot #178 £80.250 -
Oldernotwiser wrote: »Not another one!
Give me strength!0 -
This question is being asked on an almost daily basis on this forum. Your best bet is to unearth the recent threads by performing a search on MSE or on google for 'deprivation of capital' and benefits, and 'notional capital' to get thorough responses on this, plus links to the DWP decision maker guides, the internal staff manuals, which provide thorough guidance on how it is viewed and treated by the DWP.
Means tested benefits are affected after 6k, reducing until at the 16k point, they are lost completely.
A very simple response is that your friend is expected to use the money for his ordinary living expenses, such as rent and council tax, like anyone else who isn't considered in need because they have a big nest egg. If he is considered to have intentionally deprived himself of capital (for example, by gifting the money to relatives or going on a big spree for expensive consumer goods), then the DWP will calculate 'notional capital' and treat him as if he still has the money, even if he has spent it.
Find the DWP guides to understand what they consider is acceptable in terms of spend.0 -
Tigsteroonie wrote: »He declares. He uses that money to live on until it gets low (below £6k). Then he can start claiming benefits again, if he hasn't found work by then.
He could always use some of it to relocate to an area with more job opportunities.
With less than £6k, he can claim full benefits. If he's below £16k, he can received reduced benefits.Sealed pot challenge #232. Gold stars from Sue-UU - :staradmin :staradmin £75.29 banked
50p saver #40 £20 banked
Virtual sealed pot #178 £80.250 -
I would advise him to take the opportunity to get a job in another area as he has the inheritance money to help him with relocation costs and setting up in a new home. If he makes the right decision this could be the break he needs.:j Trytryagain FLYLADY - SAYE £700 each month Premium Bonds £713 Mortgage Was £100,000@20/6/08 now zilch 21/4/15:beer: WTL - 52 (I'll do it 4 MUM)0
-
Okay (pedantWith less than £6k, he can claim full benefits. If he's below £16k, he can received reduced benefits.
) He can use the money until it goes below £16k and then start claiming benefits, though he'll get a reduced entitlement until it goes below £6k. :heartpuls Mrs Marleyboy :heartpuls
MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remote Proud Parents to an Aut-some son 0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards