life change

seaveiw · 13 August 2018 at 4:45PM

Hi, this is my first time posting here but always lurking, i wonder if you can give me some clear advise.
My sister has won a large sum of money and gifing me 5k to be debt free at long last, its life changing for me and for her to be honest. I currnetly work 30 hours a week and recieve wtc and ctc and hb, not a a mssive amount but it keeps me and my son in a house and pays the bills...... i have one child whos 15 and my daughter is 18 but works, she also lives at home.
. Anyway my question is what do i do as i know i have to declare it but as its under the 6k will it affect my benefits, i will only have it for one day and then will be paying off my overdreaft and cc etc. should i ask her to pay off my debts so it wont go into my account at all, please no judgement but welcome all the answers.
Thanks

poppy12345 · 13 August 2018 at 4:52PM

seaveiw wrote: »

Hi, this is my first time posting here but always lurking, i wonder if you can give me some clear advise.
My sister has won a large sum of money and gifing me 5k to be debt free at long last, its life changing for me and for her to be honest. I currnetly work 30 hours a week and recieve wtc and ctc and hb, not a a mssive amount but it keeps me and my son in a house and pays the bills...... i have one child whos 15 and my daughter is 18 but works, she also lives at home.
. Anyway my question is what do i do as i know i have to declare it but as its under the 6k will it affect my benefits, i will only have it for one day and then will be paying off my overdreaft and cc etc. should i ask her to pay off my debts so it wont go into my account at all, please no judgement but welcome all the answers.
Thanks

As it's under £6,000 then there's no need to report this. Any savings/capital over £6,000 affects your means tested benefits.

Does your sister claim any means tested benefits? Giving you this money could affect her benefits and be classed as deprivation of capital if she does.

pmlindyloo · 13 August 2018 at 5:00PM

I was quite surprised to see this:

https://www.cornwall.gov.uk/media/3623994/Change-in-Circumstance-HB-CTS-form-Mar-13-WEB.pdf

that any change in savings does need to be reported.

I, too, thought it was only if it reached £6000 or above.

The only reason I would report it is because it may show up in your bank statements if you have reason to show them to the council (change of circumstances) and they may query where it has come from. Just hassle.

I think your idea of your sister paying off your debts directly is the most sensible approach.

What a lovely gesture and how lovely for you.

seaveiw · 13 August 2018 at 5:20PM

HI thankyou, thats what i thought would be the best idea, we are both very open with eachother so i have no problem with her doing it.
My sister doesnt claim anything now, her kids are all grown up and shes been surporting herself working 60 hours a week so a huge change for her, it hasnt really sunk in yet to be honest that it is that easy to change lifes, my sister hasnt slept for 3 days since she won it, i am so so thankful that she wants to do this but if it was me that had won the money i would of done the same in a heartbeat xx thankyou

seaveiw · 13 August 2018 at 8:14PM

Does anyone else have any advice, my daughter is officially no longer classed as a student on the 3rd of sept, thats when my cb stops etc for her, would it be better to hang fire until then to have the money, i just dont know what to do, ha this is causing me more stress than the debt !!!

poppy12345 · 13 August 2018 at 8:17PM

seaveiw wrote: »

Does anyone else have any advice, my daughter is officially no longer classed as a student on the 3rd of sept, thats when my cb stops etc for her, would it be better to hang fire until then to have the money, i just dont know what to do, ha this is causing me more stress than the debt !!!

It won't make any difference to child benefit or tax credits. It's your local council you need to tell because of your housing benefit claim.

Pollycat · 14 August 2018 at 7:05AM

seaveiw wrote: »

Does anyone else have any advice, my daughter is officially no longer classed as a student on the 3rd of sept, thats when my cb stops etc for her, would it be better to hang fire until then to have the money, i just dont know what to do, ha this is causing me more stress than the debt !!!

I'd do what the poster below suggests then the money will never have been in your account.

pmlindyloo wrote: »

I think your idea of your sister paying off your debts directly is the most sensible approach.

What a lovely gesture and how lovely for you.

I agree with the last sentence too.
Good luck, enjoy being debt-free.

TELLIT01 · 14 August 2018 at 7:33AM

If the debts can be paid off by your sister it will avoid any potential issues with your income related benefits. The advice being given that there's no need to report anything under £6k is dangerous. It is assuming that the person receiving the money doesn't have any other savings. Although that may be true in many cases, simply parroting that advice has the potential to land claimants in trouble. Any Income Related claim I've ever come across states that ANY change of circumstances needs to be reported. Staff at the relevant processing centre will input that information and the system will make the necessary adjustment.

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