Inheritance on UC

pinkjune

Hello everyone, I recently had a death in the family and learnt I am due to inherit £20,000 in the coming months/year. I am on UC LCWRA group (unable to work) and PIP high rate for both elements. Obviously I will let DWP know when that time comes. I've been looking online to figure out what will happen regarding my benefits and if i'm correct I'd keep my PIP but lose my UC until my money reaches £16,000 then it would get reduced. Just wondering if this is correct information? When they stop my UC do they actually close the claim and I'll have to go through the whole process of reapplying again or they just pause it until my money goes down? Also what happens to my council tax support, that will get stopped too I think? And I'l need to make sure I pay for my prescriptions etc? Just wanting clarification and advice from people who know more about these things than me. Thanks.

Alice_Holt

https://www.turn2us.org.uk/Benefit-guides/Universal-Credit-income-and-capital/Capital-Savings

https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/


Capital / savings over £16k will end your UC claim.

PIP, as you say, is not means-tested and will continue.

Council Tax support - each council has its own scheme. Check online for yours. You will need to inform your council of your change of circumstances. 

Have you any debts?  Repayment of debts does not count as deprivation of capital for UC.

poppy12345

If your UC ends then yes you will need to pay for your prescriptions.

calcotti

Alice_Holt said: Have you any debts?  Repayment of debts does not count as deprivation of capital for UC.

Just wanted to highlight this part of Alice’s post. If you have any debts if you use the inherited money to pay down debt within the same UC assessment period as you receive the inheritance and this brings you below £16,000 then your UC claim will not end.

If your capital is over £16,000 on the last day of the assessment period your UC claim will be closed. When savings drop you would need to make a new claim. If it is within six months you should still have access to your UC journal and will be able to do a rapid reclaim, if longer than six months it would be a completely new claim. 

Mojisola

pinkjune said:

I am due to inherit £20,000 in the coming months/year.

I am on UC LCWRA group (unable to work) and PIP high rate for both elements.

Money can also be spent on other things - replacing furniture and white goods, items that would help with your health issues, a holiday, etc.

Lots of these things have to get put off or just not bought when you're managing on benefits - if you replace old, worn-out and/or inefficient stuff with reasonably-priced new items, that's acceptable.

pinkjune

Yes I have approx £1500 on credit card that I'm wanting to pay off and I need some new carpets as I moved into my place last year and the carpets aren't in good condition and I haven't been able to afford those things while on benefits. So il be able to do those when I get the money and it won't be seen as deprivation of capital? Also yes it will most likely be within 6 months that my money drops to 16000 with paying the rent and other bills. Thanks for your advice !

calcotti

When your UC is ending I suggest that you apply for new style ESA. You will not qualify to be paid (assuming you don’t meet the NI conditions) but I think they should recognise yourLCWRA status without further assessment and you would then get Class 1 NI credits on the grounds of LCWRA. It would also ensure that when you reapply for UC your LCWRAstatus should be recognised. If you don’t do this I think when you reapply you will have to be reassessed and serve the three month waiting period before the LCWRA element could be made.

I’m not sure the above is correct so would welcome opinions of others on how to preserve your LCWRA status.

Alice_Holt

pinkjune said:

Yes I have approx £1500 on credit card that I'm wanting to pay off and I need some new carpets as I moved into my place last year and the carpets aren't in good condition and I haven't been able to afford those things while on benefits. So il be able to do those when I get the money and it won't be seen as deprivation of capital? Also yes it will most likely be within 6 months that my money drops to 16000 with paying the rent and other bills. Thanks for your advice !

    It would be sensible to keep receipts, proof of spending, etc to show the DWP should they request it.

   

TELLIT01

calcotti said:

Alice_Holt said: Have you any debts?  Repayment of debts does not count as deprivation of capital for UC.

Just wanted to highlight this part of Alice’s post. If you have any debts if you use the inherited money to pay down debt within the same UC assessment period as you receive the inheritance and this brings you below £16,000 then your UC claim will not end.

If your capital is over £16,000 on the last day of the assessment period your UC claim will be closed. When savings drop you would need to make a new claim. If it is within six months you should still have access to your UC journal and will be able to do a rapid reclaim, if longer than six months it would be a completely new claim. 

On that basis it would certainly be helpful to the OP to try to arrange payment from the executors at the beginning of a UC assessment period rather than it hitting their account a couple of days before the end of one.

GaleSF63

Don't forget to check if paying for your prescriptions with a "season ticket" saves you money.

pinkjune

Tellit01 how do I find out the dates that my assessment period is please? My uc gets paid on the 16th of each month

GaleSf63 thanks yes i will definitely need the prepayment thing as my meds will cost alot