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!
7k payout and IS
Ames
Posts: 18,459 Forumite
Hi all,
In the next couple of weeks I'm going to get insurance payouts totalling 7k following my mum's death.
I'll tell IS and get sanctions of £4 a week, I'm fine with that. But I've got a couple of questions about it.
1. Will the deductions just come off my IS or will I have £4 a week deductions from my HB and Council Tax benefit as well?
2. I want to buy a few luxuries with it (an Ipod, camera and go on holiday). Do I have to tell IS about this? It seems a waste of everyone's time for me to write and say my savings have gone down because of it, then them to write back and say that it's deprivation of capital and the deductions stand.
3. I will eventually be spending about a grand on 'allowable' expenses (a new freezer, sofa, and some disability aids), although I don't want to rush into getting them just to stop the deductions from my IS. Once I do buy them, and the deductions stop, I'll have a few k left. When I get the proceeds from mum's house and go way above the savings limits, will IS be interested in what I spent the rest of the 7k on? I'll have some big bills - uni fees, and solicitors fees. Obviously I'll keep receipts, but I'm just trying to get my head around how everything will be affected over the next few months.
Although then there'll be the big fight when I buy a house and get accused of deprivation of capital. So I want to make sure I'm doing everything by the book as far as I can.
In the next couple of weeks I'm going to get insurance payouts totalling 7k following my mum's death.
I'll tell IS and get sanctions of £4 a week, I'm fine with that. But I've got a couple of questions about it.
1. Will the deductions just come off my IS or will I have £4 a week deductions from my HB and Council Tax benefit as well?
2. I want to buy a few luxuries with it (an Ipod, camera and go on holiday). Do I have to tell IS about this? It seems a waste of everyone's time for me to write and say my savings have gone down because of it, then them to write back and say that it's deprivation of capital and the deductions stand.
3. I will eventually be spending about a grand on 'allowable' expenses (a new freezer, sofa, and some disability aids), although I don't want to rush into getting them just to stop the deductions from my IS. Once I do buy them, and the deductions stop, I'll have a few k left. When I get the proceeds from mum's house and go way above the savings limits, will IS be interested in what I spent the rest of the 7k on? I'll have some big bills - uni fees, and solicitors fees. Obviously I'll keep receipts, but I'm just trying to get my head around how everything will be affected over the next few months.
Although then there'll be the big fight when I buy a house and get accused of deprivation of capital. So I want to make sure I'm doing everything by the book as far as I can.
Unless I say otherwise 'you' means the general you not you specifically.
0
Comments
-
Well you wont have savings of 6k when you buy your things, so i dont see why you need to even tell them.0
-
Personally, I would contact them now and let them know that you're about to receive £7k and intend to replace a worn out freezer and sofa and buy some disability aids, which will take you below the £6k limit, and ask them to confirm in writing this is ok with regard to deprivation.
When the rest of your mother's money is about to come through, let them know again, as a completely separate issue.0 -
Well you wont have savings of 6k when you buy your things, so i dont see why you need to even tell them.
because I don't want to rush into buying things, I want to take my time and do research and things, so there will be a period of time when I'll have over 6k.Personally, I would contact them now and let them know that you're about to receive £7k and intend to replace a worn out freezer and sofa and buy some disability aids, which will take you below the £6k limit, and ask them to confirm in writing this is ok with regard to deprivation.
When the rest of your mother's money is about to come through, let them know again, as a completely separate issue.
I do intend to buy those things, but I don't know when I'll do it - the freezer and aids I'll be getting straight away but the sofa I want to wait and look for one I really want rather than rushing it. In fact, I'd rather wait till I know what house I'm getting so I can get the right size etc. and that'll be months. So I'll have over 6750 in savings, which will mean £4 deductions.Unless I say otherwise 'you' means the general you not you specifically.0 -
they will need to know when you get this cash and probably see bank statements,you will then lose £4 per week(if 7k is all you have),once your savings fall below 6k tell them
as for HB and CTB as long as you receive 1p a week in I/S you get full HB and CTB as you do now with no savings,basically you dont get penalised twice(and yes this surprised me as well)0 -
You dont need to tell them that you have bought anything - they will just keep applying the tariff income. If at any point you ask for a review of your claim, or they decide to review your claim then they will want receipts if they think the spending is lavish.
As for buying a house with the proceeds of the sale of your mothers house. That isnt deprivation of capital as far as I know. If your mothers property is now legally yours then it is capital and your claim will be disallowed as it will be above the higher savings limit.0 -
You dont need to tell them that you have bought anything - they will just keep applying the tariff income. If at any point you ask for a review of your claim, or they decide to review your claim then they will want receipts if they think the spending is lavish.
As for buying a house with the proceeds of the sale of your mothers house. That isnt deprivation of capital as far as I know. If your mothers property is now legally yours then it is capital and your claim will be disallowed as it will be above the higher savings limit.
So, I tell them I have the 7k, they apply the deductions, and then when I've spent 1k on things that shouldn't count as DoC I can ask for a review? That's a lot simpler than I expected!
I've been told by the DWP and DIAL that buying a house with my inheritance will be deprivation of capital. All I can do is buy the house, reapply, then appeal the sanction. The property isn't legally mine yet, it's still going through probate, I know that when it becomes half mine I'll have to tell them.
It's good that I wont be penalised three times on the savings.Unless I say otherwise 'you' means the general you not you specifically.0 -
Yes, you can ask for a review, they used to send out an A2 (Review) form. They probably still do.So, I tell them I have the 7k, they apply the deductions, and then when I've spent 1k on things that shouldn't count as DoC I can ask for a review? That's a lot simpler than I expected!
I've been told by the DWP and DIAL that buying a house with my inheritance will be deprivation of capital. All I can do is buy the house, reapply, then appeal the sanction. The property isn't legally mine yet, it's still going through probate, I know that when it becomes half mine I'll have to tell them.
It's good that I wont be penalised three times on the savings.
As for the house - when it is legally yours - will you be living in it while you try to sell it?0 -
No, I wont be living in it, we've already got a buyer lined up (my dad, he's putting his house on the market in the next few weeks).
My health has got to the point where I need a house with heating, with room for a carer, without damp and mould. I'll just have to put up with losing my IS for a few years in order to have all that. Although reading the decisions makers guide and a few threads on rightsnet I'll hopefully win at appeal.Unless I say otherwise 'you' means the general you not you specifically.0 -
Yes, reading the DMG is a very good idea, and one the most people are too lazy to carry through on. So kudos on doing that.No, I wont be living in it, we've already got a buyer lined up (my dad, he's putting his house on the market in the next few weeks).
My health has got to the point where I need a house with heating, with room for a carer, without damp and mould. I'll just have to put up with losing my IS for a few years in order to have all that. Although reading the decisions makers guide and a few threads on rightsnet I'll hopefully win at appeal.
One thing the DM's would have to be able to prove is that you intentionally deprived yourself of money for the purposes of getting benefit or a higher rate of benefit. If you are abe to show to a reasonable degree that that wasnt your intention then you have every chance of being allowed before it goes as far as an appeal.0 -
if you are going to spend £1000 ish soon is it really worth telling them about it and all the hassle with phone calls form filling etc
and yes its wrong but its not as if your fiddling £000s its only £4 a week and you might spend £1000 a week after you tell them0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 600.9K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards