Setting up a pension with inheritance money?

calcotti

Spoonie_Turtle said: I mean, you could try something convoluted with the will but you'd have to read up on the rules about deprivation of / notional capital first - I don't know if future inheritances that would otherwise be certain are included in their consideration or not.

I think that as this is a variation to the will there is nothing certain. As I read it, OP doesn't actually have an inheritance under the terms of the will. They could therefor ask their dad to pay into a pension on their behalf over a number of years - although that obviously relies on dad surviving those years. They could take £6000 without affecting their benefits or take a bit under £16,000 and accept that there will be a benefit reduction for a  number of years.\

However knowing what kind of ESA they are getting is fundamental to thinking about this.

NedS

dk1971 said:

I had just hoped that a pension idea would give me a small monthly "top up" over and above my benefits rather than getting a lump sum all at one time. 🤔

I understand your thinking, but unfortunately any "top up" income you receive from a pension will likely be deducted pound for pound from any income based benefits, so what you gain in one hand will be taken away from the other.