Inheritance Due,,The worst thing that can happen, as LCWRA will stop

Shadyocuk

If your only income for the last 3 years has been universal credit, then I can't see how you would have the required NI contributions in the last 2 years to claim new style ESA (other than NI credits going forward).

In short once you get the inheritance your universal credit claim will stop (you will need to inform the DWP).

Whilst not much help , I don't see any reason you could not pay £2880 into a SIPP (personal pension) each tax year which would be grossed up to £3600 with the tax relief which even without any growth would be worth £18000 after 5 years payments or £21600 after 6 years payments, this would have the side effect of "preserving some of the inheritance ".


I disagree with TELLIT01 as in some cases even if the only income is benefits, then buying a property can be the right thing to do, especially if someone is close to retirement as the minimium pension is a lot more than universal credit and the person might have other pension income to look forward to as well. 

poppy12345

moneytree999 said:

MattMattMattUK said:

moneytree999 said:

Spoonie_Turtle said:

moneytree999 said:

poppy12345 said:

UC is a means tested benefit and that includes all the elements such as LCWRA so what you've heard is incorrect. For all means tested benefits when you have more than £16,000 in capital all of them stop completely. 

If you have any debts you can pay them off and your UC will not be affected. Other than that there's no other way around this situation. 

IF you're claiming New style ESA as well as UC then this isn't means tested so will not be affected by capital and payments will continue as normal. 

If you're not claiming the ESA have you worked at all the previous 2 tax years or have you just been claiming UC?

moneytree999 said:

I am due inheritance, Possibly £100,000 + ....I should be Over the Moon, but im dreading the day it goes into my bank ..I will have to stop claiming Benefits ( LCWRA + My Sheltered Housing Rent paid ) Therefore, my Inheritance will NOT last long .. Is there anyway around this problem ? Is there a way to keep getting my Benefits, and still have the £100,000 sitting in my bank ..Ive heard that as im on LCWRA, I can continue getting part of it £100 a week ( Even if i have large Inheritance in bank ) But ive no definate info on this .... Ive also heard about a 'Trust' as a way out, but i dont think this will suit me .. What are my options ? Thanks in Advance

 

I have been claiming ONLY LCWRA for about 3 years ... I havent claimed any other Benefit in this time period ( I did apply for PIP but declined as my points not high enough )

You claim UC which consists of different elements, including LCWRA.  Your UC statement will tell you which elements make up your award.  If you are not eligible to claim UC you cannot claim any individual element of it.

As you reach state pension age soon, you may be able to claim Pension Credit sooner than you'd have been able to reclaim UC.  You'd just have to do periodic benefit calculations based on your diminishing savings to work out when you can claim. 

If you disagree with the PIP decision you may be able to appeal if the decision was within 13 months ago, if not you can reapply but it's advisable to get help if you didn't last time because you need to know which descriptors apply to you, to know whether you should qualify and thus whether it's worth it to pursue challenging an unfavourable decision.

Hi, I thought i cannot get 'Pension Credit' as i will have my Inheritance in Bank ???? ....I need help with my actual Question, Ive looked at Rules and Means tested, and Saving allowed etc etc , Thanks ( I wont apply for P.I.P, as my score was so low )

The answer is no, if you have anything over £16k in the bank then you will not be able to claim UC or any of it's components.

Thanks for info, But i think your WRONG ..I rang a Benefits Helpline a few months ago, and i might still be able to claim LCWRA, if ive 2 years National Insurance from when i claim, and was told i can ( If I still qualify for LCWRA, when i am due my Inheritance ) I would get around £100 a week ..Im not sure if UC pay this or another benefit ... Ill ring all helplines when i am actually due Inheritance ..... I was hoping someone on this Forum could clarify what i was told

Ringing a benefits helpline is not advised because in many cases they will give you incorrect advice, just as they've done here. They are not benefits advisors. 

They are incorrect to tell you that you would still be entitled to £100 due to LCWRA. As has been advised, your while UC will end with capital of more than £16,000. Same applies to council tax reduction, if you're claiming this. If you're currently receiving 25% single person discount for council tax, this will not be affected. 

For New style ESA, if you've only claimed UC in the last 2 tax years and you haven't worked at all then I'm afraid to tell you, you will not be entitled to payments. For UC you only receive class 3 NI credits and these are towards your state pension only. 

You came here to ask for advice and that's exactly what you've been given. I'm sorry if you don't like that advice but it's factual. 

FrugalintheNortheast

Ask for a meeting with the solicitor who is dealing with the case to discuss the matter because it could be in your best interest to have a conversation about it.

sammyjammy

FrugalintheNortheast said:

Ask for a meeting with the solicitor who is dealing with the case to discuss the matter because it could be in your best interest to have a conversation about it.

Solicitor is unlikely to have any type of benefits knowledge to help the OP

FrugalintheNortheast

That may be the case and they are also able to discuss the possibility of changing the will which is a legal option within 2 years. The details are on gov.uk. OP will benefit from the inheritance but they can decline it if they go the legal route?

TELLIT01

How is declining potentially a £100k windfall better than having a greatly improved standard of living for a few years, without relying on benefits?

sheramber

FrugalintheNortheast said:

That may be the case and they are also able to discuss the possibility of changing the will which is a legal option within 2 years. The details are on gov.uk. OP will benefit from the inheritance but they can decline it if they go the legal route?

Why would they decline it to live on benefits?

The OP wants to have the money and still claim benefits. 

poppy12345

FrugalintheNortheast said:

That may be the case and they are also able to discuss the possibility of changing the will which is a legal option within 2 years. The details are on gov.uk. OP will benefit from the inheritance but they can decline it if they go the legal route?

Doing this could be treated as deprivation of capital and therefore would still be treated as having that capital, which would still mean they would not be entitled to any means tested benefits. 

FrugalintheNortheast

OP is living in sheltered housing and I assume has health issues so maybe feels a low income and housing costs paid by the state gives a sense of security?
UC is means tested so you can’t get it with over 16 k in the bank. There is no question about that.

FrugalintheNortheast

poppy12345 said:

FrugalintheNortheast said:

That may be the case and they are also able to discuss the possibility of changing the will which is a legal option within 2 years. The details are on gov.uk. OP will benefit from the inheritance but they can decline it if they go the legal route?

Doing this could be treated as deprivation of capital and therefore would still be treated as having that capital, which would still mean they would not be entitled to any means tested benefits. 

Yes it could so they would need legal advice before proceeding down that route.