Possible 40000 inheritance.

nomuny

Hi,
Having always,been on a low income I am about to inherit what to me is a large amount of money. (I know in the grand scheme it isn't but...) It is already a mixed feelings inheritance as it's after the death of my remaining parent. I'm in receipt of UC for depression and anxiety and have actually always found having to deal with DWP anxiety inducing itself. The idea was that without them in the background, that pressure would be gone and I could maybe live off the inheritance money for a while. At the same time try and get myself to a place where I could maybe work part-time with the money as a safety net if it was too much. So the question is what do I do with the money to get the best from it as it will be my only income (at least for a while). I'm 61. Remaining mortgage on my home is approx 20000. Do I pay that off? I have no other savings. 
Thank you.

eskbanker

Paying off your mortgage is likely to be worth it, either financially (depending on the interest rate) or just for peace of mind and security.

The Flowchart - UKPersonalFinance Wiki offers a structured approach to help decide what to do with your money if it's unfamiliar territory....

Bigwheels1111

Firstly sorry for your loss.

The lovely gift from your parent is going to kick you in the teeth, this is a fact that cant be helped.

Pay the mortgage off ASAP, make sure you tell DWP, UC, Pip etc.

Do you have any other debt, clear that as well. Think of everything, Gas ,Water, car insurance, car loan , visa etc.

Why use the money to live on, then be in debt when UC starts to pay again.

You do not want to be seen as spending to cause deprivation of assets.

Get your savings under 6k and UC etc will start again.

I would head to the benefits section and post there.

https://forums.moneysavingexpert.com/categories/benefits-tax-credits

Poppy12345 is very knowledgeable

Brie

quite agree with the others that you might be well advised to pay off any and all debts.  And anything for the coming year that you normally pay monthly.

Think too about what you might need doing in your home.  You can't be accused of deprivation of assets if you use the money to replace failing white goods like an old stove, fridge, washer.  Nor getting needed replacements for other things, new mattress, sofa, assuming the old ones need replacing.  Hiring someone to clean the windows, replace the curtains and do any other repairs that are required.  Maybe get a new boiler?  New tires for the car?

I believe that you could also have a nicer than normal holiday (ok - not a round the world cruise perhaps but go away for a spa weekend or take grandkids/nieces to Disneyland Paris)

Sorry for your loss.  So many of us like the idea of getting an inheritance but not the reason we get it.  

nomuny

Thanks all. 
I have no debts aside from mortgage.

I do need things for the house. Nothing has been replaced for years. I need carpets, sofa, but I wasn't sure if that was classed as deprivation of capital you spend a lot in a short time. So this might be something to think about. 

But in all honesty I'd forego these things so I didn't have the stress of dealing with DWP  as I believe that isn't helping my mental health at all. Obviously I realise this amount isn't going to last long so it was probably just a head in the clouds moment. 
Thanks again 

Bigwheels1111

nomuny said:

Thanks all. 
I have no debts aside from mortgage.

I do need things for the house. Nothing has been replaced for years. I need carpets, sofa, but I wasn't sure if that was classed as deprivation of capital you spend a lot in a short time. So this might be something to think about. 

But in all honesty I'd forego these things so I didn't have the stress of dealing with DWP  as I believe that isn't helping my mental health at all. Obviously I realise this amount isn't going to last long so it was probably just a head in the clouds moment. 
Thanks again 

You are going to need to deal with them anyway, I know how it is.

My late wife would get panic attacks when a brown envelope dropped onto the mat.

It could cause her to stay in bed for days afterwards, the stress was so bad.

She was lucky I'm like a dog with a bone, I took care of it all in the end.

In simple terms, spend it on things you need and bills, not on living expenses.

That would be wasting the gift your parents left for you.

nomuny

Bigwheels1111 said:

nomuny said:

Thanks all. 
I have no debts aside from mortgage.

I do need things for the house. Nothing has been replaced for years. I need carpets, sofa, but I wasn't sure if that was classed as deprivation of capital you spend a lot in a short time. So this might be something to think about. 

But in all honesty I'd forego these things so I didn't have the stress of dealing with DWP  as I believe that isn't helping my mental health at all. Obviously I realise this amount isn't going to last long so it was probably just a head in the clouds moment. 
Thanks again 

You are going to need to deal with them anyway, I know how it is.

My late wife would get panic attacks when a brown envelope dropped onto the mat.

It could cause her to stay in bed for days afterwards, the stress was so bad.

She was lucky I'm like a dog with a bone, I took care of it all in the end.

In simple terms, spend it on things you need and bills, not on living expenses.

That would be wasting the gift your parents left for you.

I'm sorry your wife was affected like this. It's truly awful when things affect you in this way, I know all about this in my own situation. Unfortunately I have to deal with it all on my own. 

Thank you for your help it gives me a different perspective on things.

Alistair31

Maybe use some of it to get some help with your mental health? After paying off the mortgage. 

jimjames

Bigwheels1111 said:

Pay the mortgage off ASAP, make sure you tell DWP, UC, Pip etc.

That might not be sensible advice, really depends on the mortgage rate and any penalties. It would be daft to pay redemption fees on a mortgage at 1.5% when you can get 5% on cash savings. It really does need to be considered based on the OPs situation.

nomuny

There's lots to think about. Think I'm going to be doing a lot of working out different circumstances and outcomes to find the best way forward. Just need to remember to try not to stress. Felt ill last night with sitting all day trying to see the best way forward. Nothing  has ever been easy in my life and it seems this isn't going to be any different. 

Albermarle

Have you checked you will get a full state pension?
Check your State Pension forecast - GOV.UK