UC & Inheritance question

JamesN1984

Hi all.

I have tried searching but haven't found an exact answer to this.

I've discovered this week that a friend who has sadly passed away has left me some money from his estate. Not sure how much exactly this is going to be, but estimated to be in the region of £17-£20k.

Now, I understand anything over £16k and you are not eligible for UC, BUT my debts amount to just under £15k.

So as soon as that money hits my account, I'll be logging in online to the relevant card and loan providers and paying the debts off straight away. 

I know you are supposed to tell UC about changes in circumstances but the money will literally be in my account for around 10 minutes before going out again on debt repayments (obviously I'll keep receipts as proof!).

The remaining balance will certainly be under the £6k savings limit.

So my question is, do I still need to tell them about this income, as it will be coming in and going straight out again before I'd even have time to phone them and report the change.

Not sure when I'll get the money, could be 12 moths or so yet but just wanted to get clarity on this.

Many thanks 
Jim

Spoonie_Turtle

Disclaimer: this is based on theory rather than real-life experience -
I would advise telling them after it's happened and you've paid off the debts.

It's likely that at some point it'll be flagged up that that much money went into your account, so it's better that you'll have told them and they'll already know about it and where the money went.  Otherwise there's a real risk they might suspend your claim while they investigate, if you haven't already told them about it.


(Of course if any of the members who've actually experienced or seen this sort of situation advise differently, I defer to them!)

HillStreetBlues

JamesN1984 said:

Hi all.

I have tried searching but haven't found an exact answer to this.

I've discovered this week that a friend who has sadly passed away has left me some money from his estate. Not sure how much exactly this is going to be, but estimated to be in the region of £17-£20k.

Now, I understand anything over £16k and you are not eligible for UC, BUT my debts amount to just under £15k.

So as soon as that money hits my account, I'll be logging in online to the relevant card and loan providers and paying the debts off straight away. 

I know you are supposed to tell UC about changes in circumstances but the money will literally be in my account for around 10 minutes before going out again on debt repayments (obviously I'll keep receipts as proof!).

The remaining balance will certainly be under the £6k savings limit.

So my question is, do I still need to tell them about this income, as it will be coming in and going straight out again before I'd even have time to phone them and report the change.

Not sure when I'll get the money, could be 12 moths or so yet but just wanted to get clarity on this.

Many thanks 
Jim

If it's an and out in the same Assessment Period then you don't have to inform them.
Paying a debt is always allowable under UC but having seen staff and even Decision Markers not understand that very basic concept, I would not be informing them.

peteuk

The two posts above are from extremly knowledable forum users, however they are oposite opinions. I suspect that is what youve found when looking yourself. 

Its personal choice, either way your damn if you do, damn if you dont IMO.  Personally I would declare it and note you're paying off your debts (which is not classed as DoC) that way if they do look back at your accounts you can state you declared it and they knew about it. 

JamesN1984

peteuk said:

The two posts above are from extremly knowledable forum users, however they are oposite opinions. I suspect that is what youve found when looking yourself. 

Its personal choice, either way your damn if you do, damn if you dont IMO.  Personally I would declare it and note you're paying off your debts (which is not classed as DoC) that way if they do look back at your accounts you can state you declared it and they knew about it. 

Indeed. Very differing opinions. I have absolutely nothing to hide so was leaning towards declaring it. It would literally be in my account for minutes before paying everything off but if I can send them receipts as proof of payment,  then that should suffice.  The money would come in, and go straight back out.

Many thanks for taking the time to reply everyone

WelshPaul

If it goes in and out the very same day then don't tell them.

Grumpy_chap

1.  Inheritance is capital, not income.
2.  Repayment of debt is not deprivation of assets.
3.  Capital is only declared at end of each assessment period.

Ensure the money is received and the debt cleared within one AP.
Spend what is left on a meal out (or weekend away) to celebrate your friend's life and his generosity towards you.
Enjoy your debt free life.

sammyjammy

I would not inform them either, its likely to just cause you stress and grief, do as suggested immediately on receipt of money, keep records of it in case you are ever asked about the money.

Sorry for your loss, what a lovely thing for your friend to do.

JamesN1984

Thanks all. I'll pay everything off and keep receipts. 

Many thanks for all your help:)