Universal credit migration and inheritance

sparkle86a

We have just moved over through the migration from tax credits to universal credit and had our first payment from it.  We are due inheritance from a house sale soon . My question is , is this inheritance going to affect claim or is it under the traditional protection? I've tried looking into it but it's confusing.  We want to use the inheritance to clear off debts and to purchase our property which is currently council owned. If the universal credit payments will stop because of receiving this inheritance then we will be unable to do this and will have to use the inheritance money to live day to day instead.

marcia_

sparkle86a said:

We have just moved over through the migration from tax credits to universal credit and had our first payment from it.  We are due inheritance from a house sale soon . My question is , is this inheritance going to affect claim or is it under the traditional protection? I've tried looking into it but it's confusing.  We want to use the inheritance to clear off debts and to purchase our property which is currently council owned. If the universal credit payments will stop because of receiving this inheritance then we will be unable to do this and will have to use the inheritance money to live day to day instead.

 It will not come under transitional protection because you did not have it when you started your claim. So it will affect your entitlement until you have paid your debts down and no longer have the money. 

Newcad

Yes any monies that you now recieve from an inheritance (or anywhere else) will affect UC.

You have to tell UC when it is deposited into your account.

The 12 month disregard for savings/capital only applies if you have over £16k on the date that you Migrate from TCs to UC.

Using savings/capital to pay off debts is allowable under UC

Using it to purchase your home from the council, presumably under Right to Buy,  is not paying a debt.

Monies from the sale of a property that are intended to buy a new home can be disregarded for 6 months, longer in some circumstances if necessary.
Unfortunately that does not apply to monies from elsewhere, such as an inheritance.

Once you have above £16k in your account then you will no longer be entitled to UC.

Buying a home should usually not be treated as "Deprivation of savings/capital" but it's a tricky one with Right to Buy.
Is using your savings to buy a Right to Buy home that you already live in, and then claiming benefits "Reasonable"? - Reasonable in the DWP Decision Makers eyes, not yours.
You are already living there after all, so technically you don't 'need' to buy it.
To one way of looking at it it's just a roundabout way of using benefits to buy your house for you.
And the argument that you wouldn't need UC-HE if it was your own place doesn't cut any ice with them either.
I'll be honest that I don't know. (But I have my doubts that it is allowed without being deprivation).
Does anyone else know of any examples of how a Right to Buy house/home purchase is treated under UC deprivation rules?

If it is deemed allowable then you can reclaim UC provided that there isn't more than £16k left after the purchase.