SAHM paying off debts slowly

Eager_Elephant

I assume this is about the inheritance, is that right?
If it is then your best option is for the money to go straight to the mortgage company to pay off your mortgage and for you never to have seen it.

Does the will specifically leave you money or are your mum and uncle giving you a cut of their inheritance?

If it's not about the inheritance please explain further.

enthusiasticsaver

Just dropping in to say would it not be better for you to receive the inheritance until after any divorce is settled as surely your ex will also benefit when it comes to separating finances? 

slm6002

Hi Eager Elephant - yes it is inheritance.  My family members have received the inheritance, but as 'They don't need it!' they are hoping to pass it on to me and my siblings.  My concern is that putting it straight to the mortgage which they are happy to do, would this be seen as almost hiding it from the benefits people and therefore illegal?  No it wouldn't go through my bank, but just need someone official to say its allowed as my conscience would get the better of me if i didn't ask.
Hi Enthusiastic Saver - nothing will happen until the financial consent order has been well and truly signed and the divorce is final.   He is not getting a penny more than already agreed.

Kitten868

Really glad you got some good advice from someone lovely. There are diamonds in the benefits team. 
Its all coming into place for you now. Your new life is looking like its got a strong foundation and with you leading the way you'll do amazingly! Xxx

slm6002

Thanks Kitten.  Yes indeed as long as money can goo directly onto the mortgage, things are looking good.  And yes to get people helping is lovely.  Everyone on my diary is lovely and its such a boost knowing i have people in my corner crossing fingers and hoping.
I have received the financial consent order through this evening, so now i need to read through and try to understand all the jargon, and if correct (might have to get them to change OH's address and put something in about the maintenance as that has changed since i submitted it), sign and get OH to sign.  I am a little concerned that from the date of this being agreed in the courts i only have 28 days to pay OH the money.  My concern is not that the money will be available, but rather the solicitors might not have any space for an appointment.  I think once signed i will contact the lady in town who i have been speaking with, and see what she says and perhaps provisionally book in an appointment for roughly 14 weeks time (they reckon 12-14 weeks before agreed in the courts currently).  If i cant  transfer it in that amount of time i will have breached the contract and owe interest.  I don't want that!  I must look positively as not at that point yet and already worrying what might go wrong lol

Eager_Elephant

I think you need to stop thinking of the money as your inheritance, if you were not named in the will its not an inheritance for you.
If a family member wants to pay off your mortgage with their own money they can, this would not be counted as capital or savings because the value of the house you live in is disregarded.
Presumably the money your family are paying to the mortgage is only available to be paid to the mortgage and if you didn't want this it would not be available to you to spend as you wish 😉

Where the lines would blur is if you are actually named in the will and the money went into your account and you then paid it to the mortgage.

slm6002

Its going to be given to us as a deed of variation?  So transfer of their inheritance within the 2 years to another person.  But no i was not named in the original will

peb

If it's a Deed of Variation the original will is being amended so it is an inheritance.

Be aware that your mortgage lender will not necessarily accept monies from a third party, see if the solicitor will forward the monies directly from their account as part of the estate distribution.  They may not as it could be a breach but I don't do probate so it's possible they have a little more flexibility

Eager_Elephant

 just coming on to say the same as peb, a deed of variation is almost like a replacement will.
Are they doing this to save inheritance tax either now or in the future?

Using inheritance to pay off your mortgage while claiming benefits could be seen as deprivation of capital and you could be treated as still having the money so your benefits are cut but the money has gone to the mortgage so you have nothing to live on.
You would have to make a very good case about why your mortgage should be paid off with that money rather than you using it to live on and not claim benefits.

When is the money likely to be distributed?

slm6002

Hi Eager Elephant - yes it is to save tax in the future.  I thought it sounded a bit positive lol. The money will not be given until after divorce (so I'm estimating march ish), but need to be done before beginning of may as that is the 2 years since the death of family member.  Might have to rethink, as they have said i could choose not to get it until get it until my uncle passes if its going to make things awkward.