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Spending inheritance / effect on benefits

adamyork
adamyork Posts: 2 Newbie
edited 11 September 2017 at 2:39PM in Benefits & tax credits
Hello everyone. First up just a quick summary of our current circumstances:
  • I currently work, my partner does not
  • We have a three-month old baby
  • We live together in a private rented house
  • We have just started claiming Universal Credit
  • We currently have < £1000 in savings combined
  • My partner is soon due to inherit ~£9000 from the death of a relative

Once the above inheritance money has been received, we were planning to buy a new car and also driving lessons for my partner. I am currently the only one who can drive, but have a small 3-door car which is both unreliable and unsuitable for family purposes.

We were thinking of maybe spending around £5000 to get something suitable, but are unsure whether or how this would affect our benefits?

The inheritance would temporarily take us above the £6k savings threshold for Universal Credit (we would have around £10k) - but as it would soon go back under this amount (i.e. once we had bought the car) would this be taken into account when our UC benefits were next reviewed? Should we be declaring the inheritance even though we wouldn't have it for long and would soon be back under the 6k cut-off?

Also if it were taken into account, would it be deemed an unnecessary purchase or too much to spend on a car?

I've so far found it very difficult to find specific information on exactly what benefits money can / can't be used for and what would be deemed unnecessary purchases. We certainly have no intention of 'diddling the system' etc, so any opinions or clarification on this would be much appreciated!

Comments

  • You do need to declare the inheritance as soon as the money is deposited into your account. You can ask advice at the same time if the purchase of the car and driving lessons will be deemed to be deprivation of capital. Obviously keep all receipts.
  • I doubt that a car around £5000 would be seen as DPC.
  • TELLIT01
    TELLIT01 Posts: 17,469 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper PPI Party Pooper
    You absolutely must declare the inheritance when it hits the account. It is a change of circumstances and ALL C-o-C MUST be reported.
  • decbel
    decbel Posts: 2,804 Forumite
    OP-
    Can't see anything wrong with spending £5000 on a car. After all its for work purposes, isn't it.

    As Tellitt says do the right thing and report the change of circumstances more to cover your backs than anything else.

    Lots of people get caught out because they can't keep their mouths shut.
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