How will inheritance affect my benefits?

silk1234

One of my parents passed away recently, leaving me and my brothers and sisters their estate. It was always stated that estate was to be split equally, regardless.

My problem is that I am not working and claiming benefits, such as housing benefit, council tax benefit and jobseekers allowance.

I am quite sure that when we get the money from the sale of the house and savings we will get about £30k each. I imagine that this will affect my benefits, such I won’t be able to claim any of them.

I want to spend the inheritance on a house once I am in work. I don’t want to use the money unless I have to.

How can I protect my money so that it will not affect my benefits? Could I split my money to my sisters until I get a job? Or even ask one of them to take the money and pay it to me slowly?

I understand people will say you shouldn’t claim benefits when I have savings. But I don’t want to waste my parent’s money, just use it as a deposit on a house.

I almost wish I never had this worry hanging over my head.

Please can anybody help?

Savvy_Sue

To not accept the inheritance would be seen as deliberate deprivation of assets, you'd be assessed as if you still actually had it. I don't think there's any way round it.

Pollycat

Just to point out that this has also been posted on the Benefits board (and has 4 replies - all of which are the same as yours, Savvy_Sue).

https://forums.moneysavingexpert.com/discussion/4694123

lavalamp

Firstly, sorry for your loss - it's a difficult time when you lose a parent.

Are you expecting to be out of work long term? Might you have a new job before the £30k comes through and it won't be an issue? Presumably you are looking for a job at the moment? Probate can take a few months, so maybe it won't be an issue by the time you get your inheritance. Best advice from me is to keep looking for work rather than worry about what's going to happen to your benefits....

ValHaller

If the executors take their time over distributing the estate and you get a job, there won't be a problem.

joerugby

ValHaller wrote: »

If the executors take their time over distributing the estate and you get a job, there won't be a problem.

That's the best advice you'll get.

The whole probate thing can take a year. Other beneficiaries can be given interim payments in the meantime. I hope you manage to get into work soon.

rpc

silk1234 wrote: »

I understand people will say you shouldn’t claim benefits when I have savings. But I don’t want to waste my parent’s money, just use it as a deposit on a house.

Instead, you want the rest of us to pay your living expenses while you keep a little nest egg?

Benefits are there to support you when you cannot support yourself. You were/are in this position and so you rightfully received money from the government.

When you receive the inheritance, you will be able to support yourself and so you do not need (and are not entitled to) benefits. I don't see that putting a roof over your head and food on the table is wasting your parents money.

nom_de_plume

Assuming the OP's intention really is to use the money as a deposit (which many first time buyers traditionally struggle to raise) then I would support their view that using it to replace unemployment benefits would feel a waste.
What I suggest the OP does between now and the time the money arrives is get a job. Get any job. Just get yourself off benefits and keep this money for that deposit. You don't need to buy a property straight away, just make sure you've got enough of an income to replace the benefits.
Sorry for your loss. I hope it all works out and you get to put your parents gift to you to good use!

Savvy_Sue

nom_de_plume wrote: »

Assuming the OP's intention really is to use the money as a deposit (which many first time buyers traditionally struggle to raise) then I would support their view that using it to replace unemployment benefits would feel a waste.
What I suggest the OP does between now and the time the money arrives is get a job. Get any job. Just get yourself off benefits and keep this money for that deposit. You don't need to buy a property straight away, just make sure you've got enough of an income to replace the benefits.
Sorry for your loss. I hope it all works out and you get to put your parents gift to you to good use!

This is very sound advice: I was thinking about this earlier, obviously the OP cannot get a mortgage without having a job, so the sooner that happens the easier life will be, otherwise the inheritance will HAVE to be used to replace income based benefits until such time as a mortgage is affordable.

That, and not rushing to probate ...