Help unsure what to do

Hullster

I am looking for some viable options on what i can do.
Lost my work as a contractor some years ago after an accident. Took me close to 2 years to get over it. My mother became unwell afterwards and i decided to help out and delayed going back to work. She had a fall and October 2023 and broke some bones. At that point i became her full time carer as she couldn't look after herself. She passed away a few months ago at the end of September 2024. The house has been up for sale and an offer has already been made and accepted. They want to conclude before the end of March 2025. I turn 55 in May 2025 and have no real pension. According to my sisters my share of the house will be around £70,000. My dilema is that i am on universal credit and hope to go back to work as soon as i can, but that might take a while. As soon as i am given the inheritance eveything will change. So what can i do with the money that results in it not being savings. Can i put the lump sum into some sort of pension pot?

Any ideas or suggestions will be greatly appreciated. I thought of premium bonds, but they are considered "savings" i beleive.

MallyGirl

you can only contribute, as a non-earner, £3600 a year to a pension - £2880 from you and tax relief.
If you receive a lump sum then it will impact means tested benefits. Once you are in work you can contribute to a pension up to your salary, using some of the savings to make up for the larger pension contributions. Have you been claiming some form of carers allowance?

Hullster

Yes, i was on universal credit prior from being very ill and i got better but then became full time carer receiving full time carers allowance up to the end of september when my mother passed.

DE_612183

not sure whether you can but a property at the same time as the sale goes through - which means the money doesn't come to you so doesn't get account for with UC.

Do you still live in the house or have you got your own?

Hullster

DE_612183 said:

not sure whether you can but a property at the same time as the sale goes through - which means the money doesn't come to you so doesn't get account for with UC.

Do you still live in the house or have you got your own?

I am living at the property until it is sold. It is the only place i have to live in right now. I have to find somewhere else to live.

DE_612183

Hullster said:

DE_612183 said:

not sure whether you can but a property at the same time as the sale goes through - which means the money doesn't come to you so doesn't get account for with UC.

Do you still live in the house or have you got your own?

I am living at the property until it is sold. It is the only place i have to live in right now. I have to find somewhere else to live.

so just use the money from the sale to but the new property - the solicitors hold the funds - nothing passes through your bank account

xylophone

just use the money from the sale to but the new property 

But will £70,000 buy a new property?

The OP does not indicate that he has other savings.

And without a job, how could he get a mortgage?

I wonder would he be eligible for local authority housing given that he has to leave a property where he has been caring for his disabled mother.

This would not help with the savings question but at least he would have a secure place to live and the means to pay for it while looking for a job.

Hullster

xylophone said:

just use the money from the sale to but the new property 

But will £70,000 buy a new property?

The OP does not indicate that he has other savings.

And without a job, how could he get a mortgage?

I wonder would he be eligible for local authority housing given that he has to leave a property where he has been caring for his disabled mother.

This would not help with the savings question but at least he would have a secure place to live and the means to pay for it while looking for a job.

You are correct in your thinking. I do not have other funds, my money drained away after i had lung surgery and had to leave work. I was a  contractor for 10 years for the same company. But, they had to get someone else in which was a little upsetting but i couldnt expect them to wait as long as it took me to recover. Thats the way the cookie crumbles, they all came to see me and i had a wonderful Email from them upon leaving. Anyway, apologies for digressing, £70,000 will not get anything these days and you are right, without a job i will not get a mortgage even with a £70k deposit. I am looking forward to going back to work but i have to start all over again, its a challenge alright at 54. It will not come in time either. I just dont want to waste money. 

Lifematters

Proceeds from the sale of a property can be disregarded for 26 weeks if you intend to use the proceeds towards the purchase of a new property. You do not need to have a property lined up to purchase - just an intention to find a property and then use the capital towards buying it. 

Hullster

Lifematters said:

Proceeds from the sale of a property can be disregarded for 26 weeks if you intend to use the proceeds towards the purchase of a new property. You do not need to have a property lined up to purchase - just an intention to find a property and then use the capital towards buying it. 

Where can i see this written as a fact ?

MallyGirl

I am not sure that this is true - it usually relates to the claimants home (that they own) being sold, not an inheritance of proceeds from a home sale.. You would be best seeking clarity on this