Tax Credits, Housing Benefit and Inheritance - help please?

nannytone_2

once Universal Credit rolls out, savings will be treated the same as for other means tested benefits, and so you wouldn't receive anything with savings over 16k.

you are aware that tax credits are already being massively cut from next april?
housing benefit MAY increase in order to minimise the shortfall.
the amount you are inheriting stops housing benefit and you will probably end up having to use this money to top up your income anyway

ceredigion

Emu1 wrote: »

Thank you everyone - I don't mean to come across as 'greedy' and being free from benefits will be fabulous of course. I just don't want my dads life savings to go on bills!!
So, Monday morning I'll contact my housing office and guess I inform Tax Credits of a change in circumstances? What kind of interest would I get on £30k?
Sorry to sound dense, it's not the world I've ever lived in! ��

£30k absolute max for a couple with some messing about £936 per annum

cliffandsue

ceredigion wrote: »

£30k absolute max for a couple with some messing about £936 per annum

Are you sure?
I thought that it would have been around £300 pa.

If what you quote is right, I have a joint current account with £97000 in it. It's been there since Aug 2014. The interest I worked out wasn't worth the messing about to get it. Hope I was right.

cliffandsue

nannytone wrote: »

once Universal Credit rolls out, savings will be treated the same as for other means tested benefits, and so you wouldn't receive anything with savings over 16k.

you are aware that tax credits are already being massively cut from next april?
housing benefit MAY increase in order to minimise the shortfall.
the amount you are inheriting stops housing benefit and you will probably end up having to use this money to top up your income anyway

Yes you are right, things are a changing.
The OP is best advised to question where she could put the money so as to avoid this problem when UC hits her area. Personally I would put into a home, maybe a part own/part rent one. That way she still has the capital but the DWP/HMRC could not use it to reduce her TC

FBaby

OP the tax credits you receive is no different then the money your dad was able to leave you. It is the fruit of hard working people. The difference is you knew how your dad managed to invest or save his money whilst you don't know anything about those who pay high taxes to help people on low income.

Not directed towards you specifically but it was about time that savings was accounted for when determining eligibility for TC.

ceredigion

cliffandsue wrote: »

Are you sure?
I thought that it would have been around £300 pa.

If what you quote is right, I have a joint current account with £85,000 in it. It's been there since Aug 2014. The interest I worked out wasn't worth the messing about to get it. Hope I was right.

I am right but as said it involves some messing about and a good credit fill to start with.
30k = 8 current accounts, ALL to be cross funded with standing orders and you will need 6 DDs but you can payee your self by DD if you know how.


£85K could get you £2,184

ManAtHome

cliffandsue wrote: »

If what you quote is right, I have a joint current account with £85,000 in it.

2 single and one joint Santander 123 accounts would pay over £1720 a year interest on £60,000 (£60k at 3% = £1800 less £72 (12x3x£2) a month charges)

£30k across 2 accounts would pay just over £850pa - you could squeeze that up to the figure quoted by putting some of it into higher-paying (on smaller sums) accounts like TSB, Lloyds, Nationwide etc.

Emu1

Thank you - you've all been very informative!

nonnatus

To be blunt, it doesn't matter HOW you have come by the money. That £30k is now part of your life and part of your finances, so OF COURSE it should be used by your family to help pay towards bills, food and general expenses.

How else should it be treated? Do you want it ring-fenced in a separate account and used only to buy wide screen TV's, Apple products and holidays?

You need to think about it differently. Get your head around the fact that basically your family budget has benefitted from a large pay rise and you don't need to worry so much any more about day to day expenses...

Congratulations. And if you're as frugal as you claim to be, an amount like that should last you a LONG time.....;)

Emu1

Thank you - yes you're completely right!
You have to understand this has come as a complete shock to me - of course, I'm pleased but also scared to be 'responsible' for such a large amount of money. I'd give it all up in a heartbeat just to hear my Dad's voice...
I will be frugal - it's in my bones to be.
It was interesting to learn that Tax Credits are not actually a 'benefit' as such - simply a way of ensuring that hard working families on minimum wage have enough to get by. Now, my circumstances have changed and we will easily be able to 'get by'! I paid my taxes too for 20 years after leaving school before having my child. I just happen to believe that I've raised a lovely, polite son by basically being a stay at home mum and his Dad going out to work. Anyway, the rights and wrongs of it are a whole new thread!
But, just for the record, I hate wide screen TV's and have never been an Apple fan!! As for holidays....hmmm.... :T:T