Housing benefit & Inheritance

That reply is really unhelpful.

If you read the original posters post he asked if after he received the inheritance he could simply ask if he could stop housing benefit without giving a reason. Replies like this make me very weary about asking questions on here, as people just seem to want to shoot you down.

Superdad I am not aware of the cirumstances, but am glad that you and your wife are getting a lump sum of money and would like to commend your kindness of giving money to your family to help them out in the future too. As someone in a similar circumstance who has always had to struggle the inheritance will hopefully give you peace of mind that you no longer need to worry about making ends meet. In regards to your question, I don’t think you would need to give a reason as to why you were stopping housing benefit.

Superdad wrote: »

Hello all,

I am married and we are both retired. I am 70, my wife is 68 and we are currently on housing benefit as we have a low income. However, we are about to receive an inheritance probably in excess of £60K. We understand that if we tell the local council about this money it will almost certainly mean that they will stop our housing benefit and we are prepared for this. However, what would happen if we simply told them that we no longer wish to claim housing benefit and ask them to stop payments without telling them why? Would we be required to tell them why? Note: we live in Wales so it is a Welsh council.

Also, how long would we be expected to pay our housing costs from the inheritance? Would we be expected to use it all until it is gone or would we be allowed to spend some of it on ourselves?

Some of the things we would like to spend some of the money on are:
Setting up trust funds for our four young grandchildren.
Giving our children a lump sum each.
Decorating & furnishing our home. We have always had to manage with hand-me-downs and second hand items.
Buying a decent (possibly new) motor.

Any help or insight would be very helpful.

regards

Brian

You can read about deprivation of capital here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/365783/hbgm-bp1-assessment-of-capital.pdf

P1.680 onwards

Each case would be looked upon on an individual basis and decided by a Decision Maker. No one could tell you what exactly would be allowed but there are some 'pointers'.

It has to be found that the main aim of depriving yourself of capital would be to claim housing benefit again. So, if you didn't claim again for several years then it is possible that a housing claim would be allowed.

However, if you do intend to claim again then it is possible that they would look at previous spending to see if it was 'reasonable'.

The link does give examples of what is 'reasonable'. Giving money to relatives 'to get rid of the money so you can claim HB' is generally a 'no no'. But reasonable gifts might be OK (for Christmas or birthdays for example).

Certainly replacing furniture/home improvements (especially if they are done to improve 'quality of life' -a stair lift for example) is likely to be OK.

Although a previous poster was rebuked for their remarks the council does have a duty to see that means tested benefits are not abused by spending extravagantly by a claimant. I am sure you understand this and it is not meant to be judgemental.

As said before no one will be able to tell you exactly what you can spend it on and how far back the council would look at bank statements to see your expenditure. As you are on a low income they may take into account about whether you had considered how you intended to pay your rent in the future after spending all your money. (if you did)

Personally (others may have different views) I would update your household items without going for luxury items, buy a reliable second hand car, and give your family some cash 'treats' without going 'over the top'.

Hope this helps!

A cousin, who I barely know because he's been agoraphobic for many years, fell foul of the deprivation rules and was convicted of a £40K+ benefit fraud earlier this year. It emerged from court reports and other information that he received an £85K quarter share from his grandfather's estate in 2013 but didn't need to declare the windfall to the authorities as he closed his claims for income-related ESA, Housing Benefit and CTR days before he knew the inheritance would hit his bank account.

His plan, as proffered by the Crown, entailed emptying his bank account to show a balance below £6K as quickly as possible to then make new claims for his former benefits. He did so by a combination of withdrawing £300 from ATMs every day and transferring in excess of £30K to a series of online bookmaker accounts which he never gambled with. Within a little more than a year he could present the preceding six months of his bank statements that had a sub £6K balance. He came unstuck because that inheritance sum was 'flagged by a matching service' and the DWP along with his local council acquiring his banking records without his knowledge or consent. The bookmaker accounts were frozen and he agreed to forego the balances without the need for them to formally seize the funds. That course of action in addition to repaying the rest in cash kept him out of prison.

Trying to diddle the state is fraught with difficulties and is a fool's game for most who attempt to do so.

Superdad wrote: »

Hello all,

I am married and we are both retired. I am 70, my wife is 68 and we are currently on housing benefit as we have a low income. However, we are about to receive an inheritance probably in excess of £60K. We understand that if we tell the local council about this money it will almost certainly mean that they will stop our housing benefit and we are prepared for this. However, what would happen if we simply told them that we no longer wish to claim housing benefit and ask them to stop payments without telling them why? Would we be required to tell them why? Note: we live in Wales so it is a Welsh council.

Also, how long would we be expected to pay our housing costs from the inheritance? Would we be expected to use it all until it is gone or would we be allowed to spend some of it on ourselves?

Some of the things we would like to spend some of the money on are:
Setting up trust funds for our four young grandchildren.
Giving our children a lump sum each.
Decorating & furnishing our home. We have always had to manage with hand-me-downs and second hand items.
Buying a decent (possibly new) motor.

Any help or insight would be very helpful.

regards

Brian

As you have not yet received any inheritence then yes you can cancel the HB but why not wait and inform the council as soon as you have the money. Who knows when you wil receive it unless you are aware of the dates already

Cancelling a claim is straight forward and can be for any reason but dates are needed eg please cancel from Monday xx/xx/xx however you can decline to tell them the reason.