Universal Credit - inheritance issue

MrGavinski

I am currently receiving Limited capability for work and work-related activity elements of Universal Credit, including housing benefits. 

Several years ago, I set up a loan agreement with my parents on the promise that I would pay any outstanding debt to them on the death of my grandfather, with my inheritance. We constructed a promissory note stating the terms and conditions and they have been paying me every month to help supplement my income when I was working and studying at university. 

My grandfather passed away last year and his house sale has just gone through. I am very concerned that on receiving my inheritance payment I will lose my benefits even if I pay my parents back, which I am obliged to do. I'm not sure if this will be classed as deprivation of assets. 

After I pay my parents back and settle an overdraft and a credit card, it will bring me below the £6000 threshold. I'm just not sure if the DWP will accept this.

Should I inform them before I receive the money or should I pay these debts off and then state my case? 

Thanks

LightFlare

MrGavinski said:

I am currently receiving Limited capability for work and work-related activity elements of Universal Credit, including housing benefits. 

Several years ago, I set up a loan agreement with my parents on the promise that I would pay any outstanding debt to them on the death of my grandfather, with my inheritance. We constructed a promissory note stating the terms and conditions and they have been paying me every month to help supplement my income when I was working and studying at university. 

My grandfather passed away last year and his house sale has just gone through. I am very concerned that on receiving my inheritance payment I will lose my benefits even if I pay my parents back, which I am obliged to do. I'm not sure if this will be classed as deprivation of assets. 

After I pay my parents back and settle an overdraft and a credit card, it will bring me below the £6000 threshold. I'm just not sure if the DWP will accept this.

Should I inform them before I receive the money or should I pay these debts off and then state my case? 

Thanks

Typically, inheritance will go to the children of the deceased unless otherwise specified.

Do you have knowledge of the will that makes you believe you will be getting anything/a particular sum ?

HillStreetBlues

There is no point informing them before as there is nothing they can do, they only work on what has happened, not might happen.
It seems you have set up the loan as a legally payable debt ( this could be challenged if it's believed that your parents wouldn't enforce (take legal action) the said debt.
The CC debt will be fine and I would also  expect the loan to be fine as you seem to have a paper trail, as paying off a debt is never DoC with UC.

MrGavinski

LightFlare said:

MrGavinski said:

I am currently receiving Limited capability for work and work-related activity elements of Universal Credit, including housing benefits. 

Several years ago, I set up a loan agreement with my parents on the promise that I would pay any outstanding debt to them on the death of my grandfather, with my inheritance. We constructed a promissory note stating the terms and conditions and they have been paying me every month to help supplement my income when I was working and studying at university. 

My grandfather passed away last year and his house sale has just gone through. I am very concerned that on receiving my inheritance payment I will lose my benefits even if I pay my parents back, which I am obliged to do. I'm not sure if this will be classed as deprivation of assets. 

After I pay my parents back and settle an overdraft and a credit card, it will bring me below the £6000 threshold. I'm just not sure if the DWP will accept this.

Should I inform them before I receive the money or should I pay these debts off and then state my case? 

Thanks

Typically, inheritance will go to the children of the deceased unless otherwise specified.

Do you have knowledge of the will that makes you believe you will be getting anything/a particular sum ?

Yes, I am a beneficiary and have been informed by the executor and the probate solicitor. 

Keep_pedalling

Will your parents continue to supplement your income after you pay what you currently owe back? If they are then I can see that might be seen a a contrivance for you to continue to benefit from your inheritance. 

MrGavinski

No, once it comes through, I will no longer receive any further support.

HillStreetBlues

MrGavinski said:

No, once it comes through, I will no longer receive any further support.

As long as you don't overpay then if you need further support then that's ok.
For example if you received £100 per month for 10 years then you can only pay back £12,000 (plus any interest that's been agreed), you couldn't pay £24,000 and for it to continue for the next 10 years.
But if after you paid parents back monies own, you can enter into another agreement if you so wish, as nothing stops a  person taking out another loan after repaying the first one.