Protecting Benefits After Receiving an Inheritance in Order to Buy a Home

Swainy

i understand that there is or was a method of setting an inheritance aside from benefit assessment if I intend to  use it buy my home.

Unfortunately the 'school leavers' currently answering the phones at DWP know nothing about it.

Can anyone clarify this?

I understand the official documentation about this is a staggering 800 pages long.

Well done Rt Hon Mr Duncan Smith.

Swainy

PS. I know there is an old thread about this in the forums.

Unfortunately it is far out of date and I need current information.

poppy12345

If you've received the inheritance there's no way of "setting " it aside to buy a home. If you have savings of more than £16,000 then you're exlcuded from claiming all means tested benefits. If you're in the process of buying the house then use the inheritance that's different but it can't be disregarded for any length of time.

Nannytone

The OP is confusing inheritance with money from the sale of a house they currently live in.
This can be disregatded for upto 6 months, but has never applied to an inheritance.

So the 'school leavers'  at the DWP atr owed an apology.

Its only wise to be quite so condecending when you actually know whzt youre tal,ing about

theoretica

The only action I can think likely to be relevant is to buy the home rapidly so the inheritance is only taken into account for a short period of time.

poppy12345

theoretica said:

The only action I can think likely to be relevant is to buy the home rapidly so the inheritance is only taken into account for a short period of time.

Indeed but if the OP is claiming the old legacy benefits such as Income Related ESA/JSA or Income Support savings of more than £16,000 would end those benefits. Once those sa vings go below £16,000 they would then need to claim Universal Credit.

Alice_Holt

Swainy said:

i understand that there is or was a method of setting an inheritance aside from benefit assessment if I intend to  use it buy my home.

Unfortunately the 'school leavers' currently answering the phones at DWP know nothing about it.

Can anyone clarify this?

I understand the official documentation about this is a staggering 800 pages long.

Well done Rt Hon Mr Duncan Smith.

      Possibly the "school leavers' currently answering the phones at DWP know nothing about it", because such a "method" doesn't exist.

     Here is an Advice for Decision Makers guide on capital disregards:
  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/932331/admh2.pdf

   Luckily it's not 800 pages long, and I'm sure you will be more than capable of clarifying the answer for yourself.

poppy12345

The following was taken from the list posted by Alice.

Amount to be used to purchase premises. Where a person has received an amount within the past 6 months which is to be used to purchase premises that the person intend to occupy as their home, that amount can be disregarded from the calculation of that person’s capital where it

1. is attributable to the proceeds of the sale of premises formerly occupied as their home

or2. has been deposited with a housing association (see H2045) or3. is a grant made to the person for the sole purpose of purchasing a home1.

Which means that the inheritance is not disregarded, as previously advised. All changes must be reported and if you have more than £16,000 you won't be entitled to any means tested benefits.

Spoonie_Turtle

OP which benefits are you claiming?

Swainy

Universal credit.

poppy12345

Swainy said:

Universal credit.

Then the above advice is correct. You can't "hide or protect" the inheritance. Once the money goes into your bank if it's more than £16,000 you won't be entitled to any means tested benefits.