Re post on benifits and due to recive inheritance

Painted_Horse

Let me first of all say thankyou for replying
some of you have left me a bit more confused than I was originaly

I am not saying I want to remain on benifits when my Bequest is finalised
I just not sure when to Inform the relivent authoritys
IE council for Housing Benifit /council tax
and the DHSS for Income support

someone asked if I knew how much I was likely to recive
well If I and my sister are correct we should expect to receive OneHundred and Eighty Thousand pounds each
of course this is also dependant on how much the scolicitor and estate agent will charge

Another reply asked me why didnt i gift my sister a larger amount
My sister and her Husband both work they have their own house and a morgage obviously they dont pay rent
but pay council tax water energybills tv phone and living expensess they also have 2 sons both of whom work and also contribute to the housekeeping
I and My Partner do not work my partner became very Ill in 97 and has never recovered significantly enough to allow him to work he recives low rate disability and we are joint claiments on income support I worked full time on and off until 2004 when it was discovered that I had a degenatarive problem with my spine since then I have had 2 major operations and am no longer able to do
many Jobs my Main qualification being a riding instructor
our Son who is now 20 was diagnosed with ASD/ADHD
when he was 5 and for any of you out there who know what its like to have a Disabled child it is very hard going but also very rewarding too he is in recipte of his own ESA and DLA sepratly and he gives me his Mum 40 pounds a Fornight for housekeeping
he dosent really understand it but he feels like he is contribuating towards the Bills (even though its 20 pounds a week )when I was younger I remember having to pay my pearants 50 pounds a week for house keeping lol
SO let me Clarify
1 ..My Partner and Myself are both Joint council tenants
we are in full recipte of council housing benifit and council Tax.
2.... we are Both claiming Income support jointly as
i am named on his claim
3.. Both of us are in recipte of Disability living Allowance
him on the low rate myself on the High rate

Question
when do I have to Inform the local Authority and benifit office of my Iheratence and will I have to pay anything back ....
Question
will I and my Partner still be enitaled to our Disability allowence seperatly...
Question
this Bequest is money left to me and my sister upon
the sale of our late fathers house
it wont be a perminant source of Income
how do I explain this
Question
I only have a Joint Account should I set up singular Account so I have compleate controll of how my inheritance is spent ?
thanks once again
money savers for any help recived
regards Painted Horse

princessdon

Ok

You inform them as soon as you get the cheque/money - your money affects your OH Income Support - just wanted to make you fully aware of that.

All means tested benefits will stop

DLA stays (not means tested)

Bank Account - your choice - why should it make any difference?

Ask on the savings boards for effective savings. Eg you will get internest on that value.

Finally it IS a permanant source of income - the DWP assume interest from the money (whether you get it or not).

You can't spend the money unwisely or give it away - you use it to live. when you have less than £16,000 you can apply again for Income Support/Housing Benefit etc

Painted_Horse

Thankyou PrincessDon will look on savings board
regards Painted horse

SailorSam

If you were going to get in the region of £180k wouldn't you think of looking to buy a house, perhaps something nicer in a better area rather than leaving the money in the bank to slowly dwindle away.. You'd need to check with the social security that they would count that as a allowable use of your money.

princessdon

SailorSam wrote: »

If you were going to get in the region of £180k wouldn't you think of looking to buy a house, perhaps something nicer in a better area rather than leaving the money in the bank to slowly dwindle away.. You'd need to check with the social security that they would count that as a allowable use of your money.

Buying a home is permitted

Because they would then lose entitlement to "some other benefits" and if they need care can be sold etc.

princessdon

Painted_Horse wrote: »

Thankyou PrincessDon will look on savings board
regards Painted horse

you need to ensure you get good advice Re Tax, Interest etc with that value of money. I'd also look at an independant Financial Advisor - but for now ask on that board for general advice so you have some ideas to talk over your IFA with.

PippaGirl_2

Painted Horse, you are allowed to use the money for holidays, cars, and whatever too.

kj*daisy

Have you thought about buying your home as there are good discounts on Right to Buy at the moment, you really need some proper independent financial advice on this and the best way to secure your future without falling foul of the benefit rules. If you buy your house then you will have no need for housing benefit in the future - but you must check if this would be allowed.

jamesd

First thing you need to be sure you do is forget any thought of not telling people. The amount is sufficiently large that after a few years you are likely to end up with a prison sentence if you hide it. You don't need to tell anyone until the estate is settled and the money is paid to you, unless you tried something like deliberately delaying that.

When it comes to taking income from investments, a useful rough guide is that you can expect to take four to six percent of the capital value as income without the capital value decreasing long term. So from £180,000 you could expect to take between £7,200 and £10,800 a year of income.

Those numbers are from using proper investments, not savings accounts.

How does that sort of money compare to the amount you're getting on means tested benefits?

It's worth finding out how much right to buy would cost, then comparing that to the cost of renting the place. It may be cheaper to buy it than to use income from the invested money to pay the rent. Even if it's not cheaper, if you won't be able to live on say £10,800 a year after losing some benefits, buying lets you save some of the capital because you'd own the property and still end up eventually entitled to other benefits, just not HB.

Roughly how old are you both? As you get closer to state pension age it starts to become possible to spend at a higher rate than 4-6% because the money only has to last until the state pensions start.

[Deleted User]

PippaGirl wrote: »

Painted Horse, you are allowed to use the money for holidays, cars, and whatever too.

to a point but a rolls royce and round the world cruise would somewhere down the line be seen as DOC

PippaGirl_2

A friend of mine got a divorce settlement of £46000 and she went to Florida with the kids and bought a second hand but nevertheless posh landrover, leather seats etc for £11500 and the LA and DWP were fine with that. They said one holiday per year was fine to almost anywhere or more but cheaper holidays and one vehicle and she declared what she'd bought. I think her money was gone in a little over a year and she was back on benefits. Had her ex had a solicitor instead of self representing I doubt she would have been awarded it as ime the courts don't award money when the authorities just deduct it from benefits.