Advice on UC and Inheritance.

mrmond_uk

So, first my wife and I only just got UC sorted out and recieved just one payment after the 5 week wait. It's a joint claim but I get contribution based ESA and was moved to New style ESA (told by DWP it's the same thing) and my payments are deducted from her UC payment.

Now I've been informed by Solicitors that I'm receiving  an interim payment shortly (£55k) that will take us way over the 16k threshhold for UC and other benefits. No idea when I'm receiving a final payment or what the total amount will be.

So I know I have to inform DWP when the payment hits the bank and we'll lose UC, housing benefit and council tax benefit and have to live on the inheritance. From what I read, New style ESA and contribution based ESA aren't means tested, so do I still get that even though my wife's UC payments will stop?

Can we pay off all our debts, somwhere between £5-6k even though we  aren't being hounded for payment to avoid high interest payments that kick in in a few months time?

Would decorating the house that we've never been able to afford to do since we moved in 10 years ago be classed as deprivation of capital?

It all seems like a minefield, we finally got our UC sorted out without going into debt or our overdraft and then what seems like a good thing happens, but it's so much money we can't even seem to treat ourselves to a holiday or anything new.

My wife and I both get PIP and she really needs a motorised wheelchair to use at home and when she goes out, but we don't know if we can do that. Her PIP allowance already goes on a motability vehicle.

We aren't even sure what a realistic amount to set for a personal weekly allowance.

Thanks.

Rubyroobs

Yes oyu will continue to get the new style ESA as it is not means tested. 

Grumpy_chap

mrmond_uk said:

So, first my wife and I only just got UC sorted out and recieved just one payment after the 5 week wait. It's a joint claim but I get contribution based ESA and was moved to New style ESA (told by DWP it's the same thing) and my payments are deducted from her UC payment.

Now I've been informed by Solicitors that I'm receiving  an interim payment shortly (£55k) that will take us way over the 16k threshhold for UC and other benefits. No idea when I'm receiving a final payment or what the total amount will be.

So I know I have to inform DWP when the payment hits the bank and we'll lose UC, housing benefit and council tax benefit and have to live on the inheritance. From what I read, New style ESA and contribution based ESA aren't means tested, so do I still get that even though my wife's UC payments will stop?

Can we pay off all our debts, somwhere between £5-6k even though we  aren't being hounded for payment to avoid high interest payments that kick in in a few months time?

Would decorating the house that we've never been able to afford to do since we moved in 10 years ago be classed as deprivation of capital?

It all seems like a minefield, we finally got our UC sorted out without going into debt or our overdraft and then what seems like a good thing happens, but it's so much money we can't even seem to treat ourselves to a holiday or anything new.

My wife and I both get PIP and she really needs a motorised wheelchair to use at home and when she goes out, but we don't know if we can do that. Her PIP allowance already goes on a motability vehicle.

We aren't even sure what a realistic amount to set for a personal weekly allowance.

Thanks.

Repayment of debts is never DoC.

IMO, decorating the house would not be DoC.
There can sometimes be a sense of proportion and reasonableness.  If you chose this wallpaper ( https://www.studio198.com/products/dickson ) you might not even be able to afford to decorate one room

Why can't you treat yourself to a holiday or anything new?

Spoonie_Turtle

I cannot see that a reasonable decision maker would deem a powered wheelchair to suit your wife's needs as DoC.

Edit to add: also if there are any other aids (including smart tech) that make life easier for either of you, due to your disabilities, that should be seen as reasonable expenditure too. 
[Unless of course you go for top-of-the-line luxury well above what actually meets your needs, but generally people who've lived moderately aren't of the mindset to waste money for the sake of it; old habits die hard!]

mrmond_uk

Grumpy_chap said:

Why can't you treat yourself to a holiday or anything new?

We've been doing a lot of reading since finding out this money is coming. Everything we've read has suggested anything beyond living expenses and priority debts would be deliberately reducing our income. I've been putting a little aside towards a new laptop for the last year to replace the one I use, keyboard not working properly, can't be upgraded when Win 10 support ends, but afaik that would be viewed as luxury goods and not ok.
So many posts in forums suggest DWP know how much we need to live on and how long it should last. If I keep a record of what we use the money on and one day re-apply for UC, I'm worried about being refused for wasting money.

Newcad

One thing I did pick up on there was that the solicitor described this £55k as an "interim payment" - which suggests that there is going to be more to come later.

Maybe quite a lot more and you are not going to need bother about claiming benefits once you have the full amount?

TELLIT01

mrmond_uk said:

Grumpy_chap said:

Why can't you treat yourself to a holiday or anything new?

We've been doing a lot of reading since finding out this money is coming. Everything we've read has suggested anything beyond living expenses and priority debts would be deliberately reducing our income. 

That used to be true with previous income related benefits but is not true when claiming UC.  As others have said, you can clear debts even if they are not overdue.  New style ESA will continue to be unaffected.  Purchases of items such as a wheelchair (powered or otherwise) and possibly even an adapted vehicle will not be classed as deprivation of capital.  The caveat on that being not to go crazy and buy an adapted Bentley when an adapted Skoda would to the job.  :-)

Grumpy_chap

mrmond_uk said:

We've been doing a lot of reading since finding out this money is coming. Everything we've read has suggested anything beyond living expenses and priority debts would be deliberately reducing our income. I've been putting a little aside towards a new laptop for the last year to replace the one I use, keyboard not working properly, can't be upgraded when Win 10 support ends, but afaik that would be viewed as luxury goods and not ok.
So many posts in forums suggest DWP know how much we need to live on and how long it should last. If I keep a record of what we use the money on and one day re-apply for UC, I'm worried about being refused for wasting money.

Yes, there can be a lot of scare stuff on the internet.  

The issue around DoC is more relevant for someone who, say, receives a lump sum of £10k, added to any savings they may already have, say £10k, so they have £20k in total.  There might be some disregards and debts to pay off, it might leave a balance of £17.5k.  Spend £2k on XXX and there is suddenly a continued entitlement to UC, the question about DoC may be asked.  DoC has an element of intent - was the spend specifically to secure increased benefits entitlement?  Again, the XXX can make a difference - spend the £2k on one roll of wallpaper might look odd, spend the £2k on a new laptop and a family holiday and some wallpaper from Wickes looks rather more prudent.

I really think, if you have a sum that takes you some way out of the UC threshold (with possibly more to come), there will be very little interest from UC as to what you do with your money for quite some time.

Regardless of UC it will be worth you establishing as soon as practical how much total inheritance may be as it will aid your planning.  It could be that this first payment is a small proportion of the Estate distribution or it may be the large bulk of the Estate distribution.  If this first payment is a small proportion, you might be able to consider wholly new opportunities that you never expected such as training to support a new job path.

itsthelittlethings

Keep records of everything you spend the money on. I’d imagine bank statements will do.

Northern_Wanderer

Apart from paying off debts which cannot be deprivation of capital, you can purchase goods and services that are "reasonable" for your circumstances. Keep receipts and bank statements as proof.

marcia_

 Depending on the reason for the pay out you could set up a person injury trust.