Inheritance

1st_time_saver.

Hello all

I'm soon to be receiving an inheritance of around 100k and am currently on a joint UC claim with my wife. We live in social housing and my wife gets a direct payment from the council and she uses that to help with her care/community access needs. My wife is in the clinically extremely vulnerable group and is unable to be vaccinated, I am not working in order to keep her protected. (I resigned from my job in the NHS - I am her primary care giver)

The inheritance isn't enough to purchase a property where we are.

I fully appreciate that all monetary support will stop - apart from her PIP and carers allowance. I believe the support from the council will also stop. She also gets the LCWRA part of UC - would that also stop?

As the lump sum of inheritance will be our income/spends - how far will the relevant agencies scrutinise our spending, should we need to go back onto UC at a later date?

I think my biggest concern is that we'll be deemed to have deprived ourselves of assets and be left with no money, as there's some improvements we'd like to do to our property, such as install a disabled access bath (we currently have just a shower). We would like to be able to have some little treats from the money, but I'm worried about spending it. Our current income, including all means tested benefits and direct payments, is around £2100 per month. 

Does anyone have any advice on what to do/where to put the money while it's waiting to be spent?

Thanks in advance for any advice.

poppy12345

All of your UC will end and this includes the LCWRA element because it makes up part of your UC entitlement. You will also need to report the money to your local council and if you're claiming council tax reduction this will also end.

Regarding spending the money, there's not really any definition of deprivation of capital where spending it is concerned. Obviously, if you buy the most expensive things and the money is spent within a matter of months then it's likely they will ask questions. You can repay any debts you have because this isn't classed as deprivation of capital. Giving any money away is also deprivation of capital.

Can't advise on where to put the money though. Once it goes below £16,000 then you can reclaim UC.

Alice_Holt

May be worth keeping a record of expenditure, together with the reasons for that expenditure.

Re deprivation of capital - the main factor is whether the intention in disposing of / depriving themselves of capital is to retain or increase entitlement to one or more means tested benefits.
I can't see improvements to the house with the aim of improving the quality of life for your wife, being viewed as deprivation.

https://medium.com/@rachel.ingleby/a-guide-to-deprivation-of-capital-income-a5f26cd9188c

Any DWP decision on deprivation of capital carries appeal rights.



Re where to put the money.

Consider a savings ladder - Instant access Marcus @ .5%
                                             1 yr fixed @ 1% - Kent Reliance.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Premium Bonds are worth considering as they are (in effect) instant access and the prize fund draw (currently) returns up to 0.8% (with average luck).

It may be worth looking at your pension situation. 


MSE has articles on PB's.
https://www.moneysavingexpert.com/savings/premium-bonds-calculator/

Posting on the MSE Savings & Investment thread, may come up with other ideas.