Will our benefits change or stop??

DLTAG89

Hi, My husband and I could really do with some advice.

My Father in law has just come into a lot of money and has decided he wants to split it between my husband and his brother. They will each be receiving £90,000.

My husband currently works a full time job and earns £14k a year. I'm a stay at home mum to our 2 boys and we are expecting another in Sept. We currently receive child tax credit, child benefit and working tax credit.

Father in law has said he will keep hold of the money and distribute it as and when needed. Me and DH have decided most of it (about £60/£65k) will be going down as a deposit for a house and get the rest on a mortgage (again about £60/65k depending on what we can lend). £10k will be paying off debts and the remaining £15k maybe a holiday, a car for me (if I ever pass my test) and into savings.

My question is will our benefits stop because of savings and the fact we will have a mortgage, we wouldn’t mind if they did but want to prepare ourselves in case they stop altogether and budget accordingly. Also would i phone them up to tell them straight away with it not really being our money or wait until we do have savings and a mortgage?

Many thanks for the help :beer:

notanewuser

You won't get a £60-65k mortgage with a single income of £14k and 4 dependents.

Dunroamin

What benefits do you receive at the moment?

notanewuser

DLTAG89 wrote: »

We currently receive child tax credit, child benefit and working tax credit.

Dunroamin wrote: »

What benefits do you receive at the moment?

I'd bet there's housing and council tax benefit too.

DLTAG89

We asked the bank 6 months ago how much would they lend us and they said £63k, most other places said around the £50/£55k mark so we are being a little hopeful.

Hubby is expected a slight payrise in july too so we would probably wait until then.

and no not housing or council tax benefit, we are not entitled. What would be the point in me lying when i'm after honest advice.

We recieve child benefit, working tax credit and child tax credit.

pmlindyloo

Tax credits are not affected by savings unless the income from any interest on the savings is over £300 a year.

Means tested benefits are affected by savings. If the savings are less than £6000 then there is no problem. Between £6-16000 there is a tapered reduction.

You need to be aware of the deprivation of capital as regards means tested benefits.

Buying a house to live in would be OK (although a mortgage, as already pointed out may be difficult).

Any other money that you had transferred to your bank account would be accessed to see if it was spent in order to get/maintain benefits.

I believe that paying off debts is OK for HB and CT reduction. Also buying a car (as long as it wasn't an extravagant purchase!)

However, in the end decisions about deprivation of capital for means tested benefits is always a decision made by the decision maker so no one can guarantee that your 'spending' would be seen as deprivation of capital or not.

Edit Just seen your post! All fine then. What a generous FIL. Good luck to you.

rogerblack

DLTAG89 wrote: »

Father in law has said he will keep hold of the money and distribute it as and when needed. Me and DH have decided most of it (about £60/£65k) will be going down as a deposit for a house and get the rest on a mortgage (again about £60/65k depending on what we can lend). £10k will be paying off debts and the remaining £15k maybe a holiday, a car for me (if I ever pass my test) and into savings.

If possible, FIL could pay directly for things.
This would not affect your benefit in any way, unless you can get direct access to capital.

xylophone

Get FIL to gift the deposit- this can be covered with your mortgage provider.

DLTAG89

Thank you for all the advice :beer:

Me and DH have been talking and most of it will proably be spent on a house, car, depts and then any home improvements. Any saving we end up having will most likly be under the 10k mark so ill delcare that after we have "spent up".

McKneff

Even if you declare them after you have 'spent up' you could still be assessed as having the money,

Google 'deprivation of assets'

sammyjammy

McKneff wrote: »

Even if you declare them after you have 'spent up' you could still be assessed as having the money,

Google 'deprivation of assets'

OP is only in receipt of CB and tax credits so they can spend their money on whatever they wish.