Given money from the deceased's estate

hollydays

Someone i know is about to put in their latest tax credit claim.A few months ago,their Father died.,not unexpectedly.Their step mother gave them a cheque some time later.Her Father had toldher he was going to leave her a small sum of money.When my friend has looked at the forms,it mentions declaring any sums from an estate,together with the certificate.She did not receive any certificate.The sum was £5000.what does she do? Will she get any benefit deducted.She has no other savings.

[Deleted User]

She only needs to declare the interest earned on the money, not the actual inheritance.

hollydays

Thank you.

HappyDuck_2

please read the guidance book which comes with your renewal carefully before deciding what income to declare.

The section on the hmrc site from the renewals booklet http://www.hmrc.gov.uk/forms/tc603rd-notes.pdf pg 32 & http://www.hmrc.gov.uk/forms/tc600-notes.pdf pg 25 from the application notes both clearly state Income from trusts, settlements and estates above £300 needs to be included,

"If you received income from a trust, settlement or a deceased
person's estate, the trustees or administrators will have given you
a certificate telling you what income was paid to you. Include the

gross income (that is, the amount before any tax was taken off)."

hollydays

Thanks,as stated by subsonycoyote,that would only be the interest on this amount if deposited in a bank or bs.As already stated, a certificate was not given.

Sir_Danalot

Glad it's not just me who is stuggling with this one! I have had the same convo in another thread, i think the wording in the renewals booklet is not that clear, or is incomplete if it means you only have to declare the interest and not the actual amount recieved in inheritance. Subsionic seems to know the score, espesh given their job title, but the words and links of happyduck are worrying me!

hollydays

I rangtax credits on their behalf yesterday,told me it was only the interest she had to declare