Claiming UC, my recently deceased partner has left me some money. Looking for advice

LostLittleSoul

I’m a bit mixed up and strugging to understand a few things around my benefits as well as dealing with my illnesses and grief. I’ll try to be as brief as I can, but I’m hoping someone can advise me?


My partner passed away in July, I had been his carer for 24 months prior to that as he had been diagnosed with lung and brain cancer. I was on ESA while this was happening but I’ve since been moved onto Universal Credit - with the element where I don’t have to look for work due to illness/disability.

It’s taken 3 months to sort Universal Credit out, and they are still paying me random wrong amounts each month, and not paying enough to cover rent as well as food, bills etc. It’s been like a full time job trying to chase them up and make sure I’m being paid the correct amount.

I’ve been told I’m getting a dependent’s pension from my deceased partner of around £20,000, as a lump sum rather than monthly amounts.

I owe the following :

My Aunty £1000
My Mum £1000
Various creditors £600-£800
Rent Arrears £550

Also need to buy a new carpet and MOT my car. (roughly £300-£500)

And my partner asked me to make sure his granddaughters got £1000 each (£3000)

I want (and obviously need) to be honest with Universal Credit, but is it legal or safe to use the lump sum to pay for the things set out above and then class what’s left as savings? Or will they look at that as me being dishonest and wasting money to stay on benefits?

I’ve read about deprivation of capital and am now really worried.

This is my only chance to ever pay off my debts and hopefully start a fresh and be more sensible with money. I’m getting anxiety and diarrhea whenever the phone or door goes, thinking it’s debt collectors or bailiffs.

I need a new carpet as my partner, in his last few months grew incontinent (both Urine and Faeces) and my bedroom carpet absolutely stinks, but I’ve never been able to afford a new one. I’ve tried all different types of cleaning products but nothing works. This is also my only chance to be able to afford a carpet.

As the above debts/spending will take me under £16,000, does this mean my claim will remain open, albeit with a certain percentage taken off for being over the £6000 mark, or will they cancel my claim because the initial amount is over £16,000?

Will giving his grandchildren money look dodgy?

I’m terrified of having to go through the process of trying to claim Universal Credit again as it was a hellish time and a huge struggle. I understand that benefits are there for people who need them, and with this amount of money i’m lucky. But this lump sum was meant to help me and his grandchildren a “leg up” so to speak and try to start sorting my life out. I’m not trying to con anyone either.

Could I go back onto contribution based ESA?

Any advice would be much appreciated, and thanks for your time

TELLIT01

For better or worse, what the money was meant to do ie give you a leg up, doesn't come into the equation when judging whether a claimant qualifies for a benefit.

You can't just give money away unless it was a specific statement in the will that £1000 go to each grandchild. That would certainly be viewed as deprivation of capital. Clearing rent arrears won't be a problem. Carpet and MOT are certainly reasonable expenses.
The areas you need to get confirmation on are repaying other debts as paying before the debt is actually due can also be seen as deprivation.

pmlindyloo

LostLittleSoul wrote: »

I’m a bit mixed up and strugging to understand a few things around my benefits as well as dealing with my illnesses and grief. I’ll try to be as brief as I can, but I’m hoping someone can advise me?


My partner passed away in July, I had been his carer for 24 months prior to that as he had been diagnosed with lung and brain cancer. I was on ESA while this was happening but I’ve since been moved onto Universal Credit - with the element where I don’t have to look for work due to illness/disability.

It’s taken 3 months to sort Universal Credit out, and they are still paying me random wrong amounts each month, and not paying enough to cover rent as well as food, bills etc. It’s been like a full time job trying to chase them up and make sure I’m being paid the correct amount.

I’ve been told I’m getting a dependent’s pension from my deceased partner of around £20,000, as a lump sum rather than monthly amounts.

I owe the following :

My Aunty £1000
My Mum £1000
Various creditors £600-£800
Rent Arrears £550

Also need to buy a new carpet and MOT my car. (roughly £300-£500)

And my partner asked me to make sure his granddaughters got £1000 each (£3000)

I want (and obviously need) to be honest with Universal Credit, but is it legal or safe to use the lump sum to pay for the things set out above and then class what’s left as savings? Or will they look at that as me being dishonest and wasting money to stay on benefits?

I’ve read about deprivation of capital and am now really worried.

This is my only chance to ever pay off my debts and hopefully start a fresh and be more sensible with money. I’m getting anxiety and diarrhea whenever the phone or door goes, thinking it’s debt collectors or bailiffs.

I need a new carpet as my partner, in his last few months grew incontinent (both Urine and Faeces) and my bedroom carpet absolutely stinks, but I’ve never been able to afford a new one. I’ve tried all different types of cleaning products but nothing works. This is also my only chance to be able to afford a carpet.

As the above debts/spending will take me under £16,000, does this mean my claim will remain open, albeit with a certain percentage taken off for being over the £6000 mark, or will they cancel my claim because the initial amount is over £16,000?

Will giving his grandchildren money look dodgy?

I’m terrified of having to go through the process of trying to claim Universal Credit again as it was a hellish time and a huge struggle. I understand that benefits are there for people who need them, and with this amount of money i’m lucky. But this lump sum was meant to help me and his grandchildren a “leg up” so to speak and try to start sorting my life out. I’m not trying to con anyone either.

Could I go back onto contribution based ESA?

Any advice would be much appreciated, and thanks for your time

I am very sorry for your loss.

You can read about deprivation of capital here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/618960/admh1.pdf

particularly H1795 onwards.

You cannot be accused of deprivation of capital if you write to the DWP to explain what you want to spend your money on and they give you the 'go ahead'.

So, this is what I suggest you do.

Explain that this is a dependent's pension and then set out clearly what you wish to use your money for. (bullet points may be a good idea). A decision maker will then write and give their decision.

You can certainly pay back debts. I cannot find any information about whether debts to family are included in this.

MOT for your car, replacing household goods would be OK.

The one possible problem might be the gifts to the grandchildren. Was this stipulated in a will/letter of wishes?

As regards going back on contribution based ESA, do you actually receive contribution based ESA at the moment as a separate payment and then it is deducted from your Universal Credit?

You may need some advice from CAB or a welfare advisor about this aspect. There is something about carers being able to meet the NI contributions/credits for contribution based ESA without having worked and earned the earnings threshold necessary for contribution based ESA.

Having said that you would still need to claim UC for the housing element - i.e to pay your rent.

Don't forget to tell the DWP when this lump sum is likely to be paid.

poppy12345

I'm sorry for your loss.


Money you also owe to your mum and Auntie can also be seen as deprivation of capital. You do need to report the money as soon as it goes into your bank.

calleyw

pmlindyloo wrote: »

You can certainly pay back debts.

Are you sure on that. I was sure it was only if the debts where due not because you want to clear them.


E.g a loan or credit card you pay monthly. Pay them off completely and it could be seen as deprivation of capital.



But if the you had an overdraft and the bank demanded payment now then most likely not treated as deprivation of capital.



Yours


Calley x

pmlindyloo

calleyw wrote: »

Are you sure on that. I was sure it was only if the debts where due not because you want to clear them.


E.g a loan or credit card you pay monthly. Pay them off completely and it could be seen as deprivation of capital.



But if the you had an overdraft and the bank demanded payment now then most likely not treated as deprivation of capital.



Yours


Calley x

Yes, I am sure.

Universal Credit is different from the old legacy benefits in this respect - one of the sensible changes IMO.

Quote from the legislation previously given.

People are not treated as having capital of which they have deprived themselves if 1. it reduces or pays a debt owed by the person or 2. they purchase goods and services and that expenditure was reasonable in the circumstances of that person’s case1

calleyw

pmlindyloo wrote: »

Yes, I am sure.

Universal Credit is different from the old legacy benefits in this respect - one of the sensible changes IMO.

Quote from the legislation previously given.

People are not treated as having capital of which they have deprived themselves if 1. it reduces or pays a debt owed by the person or 2. they purchase goods and services and that expenditure was reasonable in the circumstances of that person’s case1

So I can get this clear in my head you can pay off all debts under UC and it wont be classed as deprivation?


useful to know.


Yours


Calley x

NeilCr

pmlindyloo wrote: »

Yes, I am sure.

Universal Credit is different from the old legacy benefits in this respect - one of the sensible changes IMO.

Quote from the legislation previously given.

People are not treated as having capital of which they have deprived themselves if 1. it reduces or pays a debt owed by the person or 2. they purchase goods and services and that expenditure was reasonable in the circumstances of that person’s case1

Legislation also says receipts are needed.

This isn't anything to do with the OP but I do wonder if a DM may raise queries if some of the debts were to family members and this resulted in benefits still being paid. You may well need a good paper trail in these cases.

Generally, I agree with you that it's a good change

TELLIT01

pmlindyloo wrote: »

Yes, I am sure.

Universal Credit is different from the old legacy benefits in this respect - one of the sensible changes IMO.

Quote from the legislation previously given.

People are not treated as having capital of which they have deprived themselves if 1. it reduces or pays a debt owed by the person or 2. they purchase goods and services and that expenditure was reasonable in the circumstances of that person’s case1

That is certainly good to hear. The situation with legacy benefits whereby clearing debts, and therefore avoiding interest charges, was potentially treated as deprivation always seemed perverse to me.

LostLittleSoul

Thank you so much for all of the helpful replies, it means alot.



Sadly my partner left no will, so I may have to wait a while or figure something else out regarding his grandchildren.


I totally understand about the debts to my family also, it does seem like it's giving money away, but again, I will figure something else out and possibly check with DWP if it is ok for me to make a monthly payment towards these two debts.


With regards to the limits of £16,000 and £6,000 , once the money goes below the £6000 mark, am I then free to do what I wish with it (IE either give some to the grandchildren or put it towards a college course etc) or will I need to notify the UC department everytime I need to use it until it is all gone? That question possibly sounds a bit bitter, but it isn't meant to. I realise that benefits are for people on a low income and a windfall like this is not a small amount of money, so it's only right that I pay my way.



It's helpful to know that I can pay my other debts off and also the carpet etc is acceptable expentiture - thank you.


I was on contribution based ESA before my partner died, and they took me off it a month ago because I needed help with housing costs, so was transferred to UC. I will also remember to notify the council of the money as they are helping me with council tax discount.


Thanks again for the replies, I was expecting to be berated for being a bit naive, but you've all helped me understand things much better. I am seeing citizens advice on Friday just for a bit of extra security, and will contact UC on Monday to let them know whats happening.

xylophone

And my partner asked me to make sure his granddaughters got £1000 each (£3000)

The money is yours - this would be regarded as a gift from you so Deprivation of Capital.