Benefits after inheritance and housing after receiving inheritance

Hi All,

Apologies if this doesn't make sense.

My grandfather recently passed away and left his estate to my uncle and myself.

The total including properties is around 400k.

My uncle receives benefits and currently lives in a council funded flat. This flat is in a horrible block, it is unsafe and he is fearing for his safety there.

My question is am I able to use his portion of the inheritance to buy him a property and would this affect his benefits?

I am happy to have the property in my name if this allows him to continue to receive his benefits.

Unfortunately my uncle suffers from mental issues that renders him unable to work. He is also two years away from retirement age.

Also would keeping any leftover money in an account in my name help him retain his benefits?

Apologies if this is the incorrect thread.


  • calcotti
    calcotti Posts: 15,696 Forumite
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    edited 17 March 2023 at 12:01PM
    If he has inherited money that counts to him and has to be announced once it belongs to him. All income based benefits will stop if his capital is now over £16,000. If his capital is then used to buy a property which then reaches his capital below £16,000 he can then apply for income based benefits again.

    You can’t simply have his money ignored by hoping it on his behalf.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • HillStreetBlues
    HillStreetBlues Posts: 3,196 Forumite
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    edited 17 March 2023 at 12:01PM
    Fist of all no it would help keeping his money in your name,
    You say 400k  is that between you and is there property involved? (how is the 400k broken down?)
    Let's Be Careful Out There
  • so it would be 250k for the value of my grandfathers property and 150k in money. The entire estate is split 50/50 between the both of us
  • Thanks all for the insight, I am very new to all this and just want to make sure he is taken care of
  • Rubyroobs
    Rubyroobs Posts: 863 Forumite
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    If you bought a house in your name to rent to him it may be seen as a contrived tenancy and he may be refused housing benefit or Universal credit rent element. Renting from a close relative can be tricky. the best bet would be to use his half to buy a cheap property but then you also need to think about whether he can afford maintenance of the property in the longer term. The other option as others ahve said is that all his means tested benefits would stop on receipt of his half of the inheritance, then when they drop below 16k he could reclaim again. If he claims disability benefits then they would not be affected. By the time he reaches state pension age, he should have a significant amount left which wouldn't affect his state pension but would still rume him out of housing benefit and council tax support.
  • marcia_
    marcia_ Posts: 1,767 Forumite
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    edited 17 March 2023 at 1:45PM
    Thanks all for the insight, I am very new to all this and just want to make sure he is taken care of
     He'll be taken care of with the money he is inheriting, he'll survive very comfortably for years without the need for benefits. 

     He may be better in rented property where the landlord carries out any repairs and major works without cost to himself 
  • Perhaps look at retirement villages, either rent, buy or shared ownership?
    New builds seem to be popping up everywhere.

    I've visited/worked on a few and they seem like the perfect place to retire.

    With 200k and benefits, I would imagine that it's within reach?
  • OhWow
    OhWow Posts: 383 Forumite
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    Private renting is a huge risk. He could end up with a bad landlord (who doesn't want to carry out their repairs) or a broke landlord (who can't afford to carry out their repairs/ has to sell up due to their own financial woes).

    Buying on a retirment village seems like a good idea
  • Thank you all so much for the advice, you have definitely given me a lot to think about. :)
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