Grants and income

gwd5

Hello
I wonder if anyone can help with this query. My grandson will be starting university next year and he was intending to apply for the grants to help with living costs as my daughter and her husband are on a very low income and claim benefits.

Now the problem is this -unexpectedly, my son in law has just found out that he is about to inherit an amount which would be over his limit to claim any benefits. He is still struggling to find full time work, and knows that he will have to live from his windfall until he is earning.

I imagine that having a large amount of money would put a stop to his being entitled to any help with grants or maintenance grants, I think they're called, for university, even though my son-in-law does not have a taxable income.

I would be grateful if anyone could help me with this dilemma - thank you.

devildog

Grants are based on taxable income. If the inheritance was invested and was taxed on the interest gained, then the taxable interest would be classed as income (if it was put into an ISA account the interest is non taxable and so wouldn't be classed as income)

Prothet_of_Doom

Can the inheritance be legally redirected to avoid impact on your benefits ? Were you planning to give your son a share when he graduates ? In which case get the executor to make a payment direct.

Voyager2002

gwd5 wrote: »

Hello
I wonder if anyone can help with this query. My grandson will be starting university next year and he was intending to apply for the grants to help with living costs as my daughter and her husband are on a very low income and claim benefits.

Now the problem is this -unexpectedly, my son in law has just found out that he is about to inherit an amount which would be over his limit to claim any benefits. He is still struggling to find full time work, and knows that he will have to live from his windfall until he is earning.

I imagine that having a large amount of money would put a stop to his being entitled to any help with grants or maintenance grants, I think they're called, for university, even though my son-in-law does not have a taxable income.

I would be grateful if anyone could help me with this dilemma - thank you.

Student grants (and loans) are normally based on the parents' taxable incomes, not on their savings. So your grandson should apply for the maximum grant and loan, and should receive these and in addition be entitled to a bursary. The inheritance will not make any difference, unless it is invested in such a way that it produces a significant taxable income.

Another topic is how your son-in-law can minimise the impact of the inheritance on his benefits. You might like to encourage him to search this forum for advice on this much-discussed question, or post a separate enquiry.

gwd5

Thank you for your replies.

I'm not sure what my son-in-law is planning to do with the money yet as he wasn't expecting it, although he has mentioned to my daughter about buying a flat. When my grandson leaves their home for university there will only be the two of them so he may have just enough money for a flat, however he still needs to work to pay the bills and feed himself and my daughter.

If he does this most of his money will be gone so I can't imagine he will have a large income after buying, but he sees property as security for my granson's and their futures. With my pension I can hardly offer them anything unfortunately.

Well thanks again for all your help, hopefully my grandson will be able to get help at university for accomodation and other living costs.

Mojisola

gwd5 wrote: »

however he still needs to work to pay the bills and feed himself and my daughter.

Is there some reason why she can't work?

gwd5

Sorry, she is working part time but it doesn't pay a great deal, although she is trying for more hours in this or a new job.