Inheritance Coming Through, Possibly £300,000.. Tax?

Savvy_Sue

You can actually continue to live a simple life with money in the bank.

What you shouldn't do is give away so much that your money runs out before you do. They're still relatively young, and might live another 40 years ...

BooJewels

With £300k of capital, if that money was put into savings accounts with decent rates and that paid out monthly interest, it could give a decent supplement to their income without even needing to touch the principal.

Now inflation is falling, taking interest rates with it, this isn't as attractive as it was 18 months ago - but £300k at an average of 3% (I'm assuming rates are going to continue falling) would give a monthly income of £750 - even if it dropped to 2%, that's still £500 per month - without doing anything.

I'm with others, this beneficiary should keep what they've inherited to make their life comfortable - and that might just be being in a situation where they no longer need to worry about money and putting the heating on when cold etc. etc. and maybe buying equipment and materials for hobbies or days out and holidays. Even a simple life can be made better with a few pennies in the bank - and do not underestimate the value of just knowing it's there if you need help in future - as someone mentioned - it gives you choice - and that's a valuable commodity.

Ensure they write a will, so that potentially those they might have shared it with now can get some of what may be left - but their needs should absolutely come first. But please don't let them give away funds in some false thinking that it will help secure their housing benefit - as they're going to lose that anyway.

mta999

All good advice and just to add I don't think it can be kept quiet as local authorities regularly scan probate registers to see who has inherited what

Mands

https://forums.moneysavingexpert.com/discussion/comment/81893601#Comment_81893601

It can't be kept quiet as that would be fraud.

Savvy_Sue

https://forums.moneysavingexpert.com/discussion/comment/81893582#Comment_81893582

Another thing to take advice on would be whether an annuity would be worthwhile. They can be lifetime, or for a shorter or longer fixed period. I know when I took mine out - with a much smaller sum - my adviser said that they had been less good VFM, and were now very much better, so I have no idea what they're like now. But they do take the purchaser's general health into account, so a higher life expectancy gets less money than one compromised by anything.

pollypenny

https://forums.moneysavingexpert.com/discussion/comment/81892276#Comment_81892276

Take the inheritance as a chance to enjoy those golden years.

thevoyager

Hi everyone.

I found out today that the pensioner in question is not in receipt of any housing benefit or any benefits, just the state pension, though also receieves some PIP but it's about £280 a month so not much. Her partner also only gets state pension and some pension credit. Would this mean they can receieve the inheritance without any changes to their income..?

Keep_pedalling

It won’t impact PIP payments but it will put a stop to PC the partner is getting.

elsien

Pension credit is means tested and they are assessed as a couple. Are they not getting council tax relief because that is means tested?

How do they pay their rent?

thevoyager

https://forums.moneysavingexpert.com/discussion/comment/81896542#Comment_81896542

They don't get any council tax relief now, paying the full bang of £120 a month or whatever it is… Which I was surprised about as they are pensioners on state pension… Though maybe because they live together so have more buying power (though not much after all bills have gone out). But noted, on the pension credits… I don't think that's too much either.