Inheritance an universal credit

alwaysworrying

Hi, this is my first ever post so please be patient if i make mistakes.
           Im on esa support group contribution  based and so is my partner she also gets dla.

alwaysworrying

  Hi sorry
 pressed the post button by mistake,so as i was saying both of us on esa and my partner on dla    ive known about an inheritance that i due to recieve but just before this arrived i had the migation letter to move to universal credit arrive.       i was getting housing and council tax bennifit to whitch i informed as soon as the money went into my account                                                                                                                                                                                                       so at this moment i am paying full rent and council tax as i shoud be. i have not applied for universal credit as i know my savings will be well over the threshold. am i allowed to spend my money i have paid mine and my partners debt off we live in a housing asocciation property and would like to do some work to gardens ect would this be seen as deprivation of capital, and do i still have to apply for or even tell universal credit knowing i will be turned down many thanks for reading this

tacpot12

You are allowed to spend your money in reasonable ways and in reasonable amounts without it being seen as deprivation of capital. So you can go on a holiday, give the garden a make-over,etc. It would be ask well to keep the receipts for large purchases, and also to be careful not to be too extravagant. Spend your money as any sensible person would do and you will be fine to reclaim Universal Credit when your savings/capital drops below £16,000. 

HillStreetBlues

You don't have to apply for UC.

peteuk

If you’re still in the 3 months allowed to transition, apply for UC.  The two reasons why…

1) As you are transitioning from Tc any capital above £16K will be disregarded for 1 year.  
2) Your current TC will get an in year end, if you dont apply for UC your TC will end and in April you will be due a TC review.  If there is a change of income then you may have an overpayment,  all your income for the financial year will be taken into account for the 6 months TC claim.

poppy12345

peteuk said:

If you’re still in the 3 months allowed to transition, apply for UC.  The two reasons why…

1) As you are transitioning from Tc any capital above £16K will be disregarded for 1 year.  
2) Your current TC will get an in year end, if you dont apply for UC your TC will end and in April you will be due a TC review.  If there is a change of income then you may have an overpayment,  all your income for the financial year will be taken into account for the 6 months TC claim.

They didn't say they are claiming Tax credits. They said they were claiming Housing benefit and Council Tax reduction. 

alwaysworrying said:

      i was getting housing and council tax bennifit 

justwhat

poppy12345 said:

peteuk said:

If you’re still in the 3 months allowed to transition, apply for UC.  The two reasons why…

1) As you are transitioning from Tc any capital above £16K will be disregarded for 1 year.  
2) Your current TC will get an in year end, if you dont apply for UC your TC will end and in April you will be due a TC review.  If there is a change of income then you may have an overpayment,  all your income for the financial year will be taken into account for the 6 months TC claim.

They didn't say they are claiming Tax credits. They said they were claiming Housing benefit and Council Tax reduction. 

alwaysworrying said:

      i was getting housing and council tax bennifit 

Yes but they said they had a migration letter. So the assumption is they were/are claiming TC.

sammyjammy

justwhat said:

poppy12345 said:

peteuk said:

If you’re still in the 3 months allowed to transition, apply for UC.  The two reasons why…

1) As you are transitioning from Tc any capital above £16K will be disregarded for 1 year.  
2) Your current TC will get an in year end, if you dont apply for UC your TC will end and in April you will be due a TC review.  If there is a change of income then you may have an overpayment,  all your income for the financial year will be taken into account for the 6 months TC claim.

They didn't say they are claiming Tax credits. They said they were claiming Housing benefit and Council Tax reduction. 

alwaysworrying said:

      i was getting housing and council tax bennifit 

Yes but they said they had a migration letter. So the assumption is they were/are claiming TC.

The housing benefit claim will have triggered the migration letter.

poppy12345

justwhat said:

poppy12345 said:

peteuk said:

If you’re still in the 3 months allowed to transition, apply for UC.  The two reasons why…

1) As you are transitioning from Tc any capital above £16K will be disregarded for 1 year.  
2) Your current TC will get an in year end, if you dont apply for UC your TC will end and in April you will be due a TC review.  If there is a change of income then you may have an overpayment,  all your income for the financial year will be taken into account for the 6 months TC claim.

They didn't say they are claiming Tax credits. They said they were claiming Housing benefit and Council Tax reduction. 

alwaysworrying said:

      i was getting housing and council tax bennifit 

Yes but they said they had a migration letter. So the assumption is they were/are claiming TC.

No, not at all because not everyone was/is claiming TC. Some people just claim housing benefit, which is part of the migration process. 

peteuk

justwhat said:

poppy12345 said:

peteuk said:

If you’re still in the 3 months allowed to transition, apply for UC.  The two reasons why…

1) As you are transitioning from Tc any capital above £16K will be disregarded for 1 year.  
2) Your current TC will get an in year end, if you dont apply for UC your TC will end and in April you will be due a TC review.  If there is a change of income then you may have an overpayment,  all your income for the financial year will be taken into account for the 6 months TC claim.

They didn't say they are claiming Tax credits. They said they were claiming Housing benefit and Council Tax reduction. 

alwaysworrying said:

      i was getting housing and council tax bennifit 

Yes but they said they had a migration letter. So the assumption is they were/are claiming TC.

My mistake I read transition and assumed TC, however I believe the advice is sound for anyone who is transitioning from TC to UC.

alwaysworrying

Hi thank you all so much for all your replies, for reference to tc which i take to mean tax credits, no we dont recieve that. yes im still inside  my migration letter period by about 25 days       there are quite a few things i would like to do as i was banckrupt back in 2015 and my health was failing around the same time.