Will my inheritance affect my parents benefits?

DriftRiderJosh

Hello as in the title i want to now how my inheritance will affect my parents benefits. I live with my parent and don't intend on move out any time soon. when i turn 18 in about a months time i will inherit money from a flat that was sold, which was left by a very close family friend. The amount is about £59,000.

What i know so far is that if if you have over £6000 in saving, £1 is deducted for £250 over £6000. However this is my money not my parents and I intend on saving this money for a deposit on a house in future. This money will most likely will be stored in an account where I cannot withdraw any it for a few year so i can build some interest on it.

Any replies and knowledge on my situation will be a great help and will be very much appreciated.

Thanks

Josh

rogerblack

DriftRiderJosh wrote: »

The amount is about £59,000.
<snip>
I intend on saving this money for a deposit on a house in future. This money will most likely will be stored in an account where I cannot withdraw any it for a few year so i can build some interest on it.

Please note, I misread this as applying to the original poster, not their parents.
This will not affect the parents benefits.

Your intent for the money is quite irrelevant.
If you have ever had the money in your posession, to do with as you wish, you will be treated as if you still have it, even if you place it in an account to which you have no access for the moment.

As this is over 16000 pounds, you will not be entitled to any means tested benefits at all.
If you spend the money recklessly, and exhaust it and then need to claim benefits, you may be treated as if you still have some of it.
If the amount you are treated as having 'wasted' exceeds 16000 pounds, then even if you have no money, you will not be entitled to means tested benefits.

dzug1

But OP is asking how it will affect his parents' benefits - not his own

pmlindyloo

If you are not receiving any benefits yourself then this will have no effect on your parent's benefits at all.

real1314

1. Which benefits do your parents claim?

2. Do your parents claim benefits for you? If so, which benefits do they claim for you?

:cool:

DriftRiderJosh

real1314 wrote: »

1. Which benefits do your parents claim?

2. Do your parents claim benefits for you? If so, which benefits do they claim for you?

:cool:

Benefits claimed in my household are;

Incapacity Benefit (my father)

child tax credit

child benefit

so child tax credit and child benefit will be affected because they involve me?

krisskross

How much longer will you be in full time education?

pmlindyloo

DriftRiderJosh wrote: »

Benefits claimed in my household are;

Incapacity Benefit (my father)

child tax credit

child benefit

so child tax credit and child benefit will be affected because they involve me?

No CTC and CB will not be affected your inheritance. They are benefits which are received by your parents.

The CB and CTC will end when you finish relevant education.

You will have to pay income tax on your savings so make sure you read Martin's articles about good savings accounts to put your money into.

xylophone

You will have to pay income tax on your savings so make sure you read Martin's articles about good savings accounts to put your money into.

Not necessarily - depends on OP's total income.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/IncomeTax/Taxrefundsreclaimingtax/DG_078335

http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm but examples out of date see
http://www.hmrc.gov.uk/rates/it.htm/

DriftRiderJosh

krisskross wrote: »

How much longer will you be in full time education?

I currently half way through a 2 year level 3 college course and i will be doing another 2 years after that so when i finish i will be 20.

Dognobs

DriftRiderJosh wrote: »

I currently half way through a 2 year level 3 college course and i will be doing another 2 years after that so when i finish i will be 20.

Put the money away so you can't touch it (but you could treat your parents to a nice night out they will live it!) and keep it safe.

Finish collage get a good job and buy a house it when you are young will be the best thing you will ever do and enjoy it! My people don't get the chance you have got so don't blow it