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Original poster

Inherited £50k but I'm a siingle mum, carer on benefits

58 replies

Misspointypencil · 17/10/2010 10:59

Hi. My mother passed away recently and I am about to receive a cheque for just under £50k. To my brothers that inheritance can just go in the bank, they have good jobs, are home-owners and aren't struggling financially. However for me it's a different story. I'm a carer as well as being a single mum, have a disabled child and I haven't gone out to work for around nine years because of this. I'm not lazy, or a scrounger, in case anyone suspects this - I worked very hard before my circumstances changed. I work even harder now!

It may seem like a lot of money (well, it IS) but I will have to live off it, so I don't know how long it will last, with two young children. I get DLA for my disabled one, and carers allowance, but I don't know if I will still get that.

Anyone got any advice or ideas? I doubt if I would be able to go out to work full time, there's no-one to look after the kids, we have no relatives nearby or any other safety net!

OP posts:
ASecretLemonadeDrinker · 17/10/2010 11:01

Buy a small house outright and live in it (I think you will still get all your benefits obv. bar HB) or buy and rent it out, but that starts to become income... Best idea I have is buy a house & live in it

Original poster
Misspointypencil · 17/10/2010 11:05

Surely I wouldn't be able to get a house for 50k? I doubt if I would be able to get a mortgage sadly.

OP posts:
choufleur · 17/10/2010 11:05

Buy something that you half own and half rent. Then you can still get HB for the rent.

Original poster
Misspointypencil · 17/10/2010 11:10

Thats a thought!

OP posts:
choufleur · 17/10/2010 11:17

Look into how much you could put in the kids names. then it's not technically your money.

colditz · 17/10/2010 11:18

choufleur, excellent idea! You'd only have to pay the rent, and you would own half a house.

colditz · 17/10/2010 11:18

www.homebuy.co.uk/

Original poster
Misspointypencil · 17/10/2010 11:40

Thanks for that colditz. I just had a look on the site and there doesn't seem to be anything I could afford around my area, but I might not have searched correctly as I did it really quickly! I don't want to move too far from where we are because my (non-disabled) son would have real problems adjusting to a change in school. He's only just settled in this one and he's in year 2!

OP posts:
ASecretLemonadeDrinker · 17/10/2010 11:44

You can buy for

edam · 17/10/2010 11:47

Go and see CAB and check what would happen to your benefits if you spent £50k on a house - it may be you'll lose your entitlement to some of them if you have £50k and spending it won't make any difference.

Hope you find a way to enjoy the inheritance without having to worry about benefits entitlements.

Original poster
Misspointypencil · 17/10/2010 12:00

Thanks so far for your advice. I use a welfare rights advisor for DLA forms etc, so might give her a call, she might be able to tell me.

OP posts:
foreverastudent · 17/10/2010 12:28

You will keep getting DLA, carers allowance, CTC and CHB. But you will lose HB, CTB and any IS you get. Shared ownership sounds like a good idea- if the money is tied up in a property you live in then it doesn't count for the above benefits so you could still claim them.

If you do want to return to work though, could you use the money to pay for carer for your disabled DC?

sarah293 · 17/10/2010 12:31

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Message withdrawn

saggarmakersbottomknocker · 17/10/2010 12:33

The house thing is a good idea. If you invest it and take an income it would affect your Carer's allowance I think?

Appletrees · 17/10/2010 12:37

A pension.

SpottyMuldoon · 17/10/2010 12:47

I'm pretty sure capital over £16k ,including property, is counted for HB purposes. Could you not put it into a trust for the children? Although, I'm sure I've read somewhere that if you have money and 'get rid' of it they treat it as 'notional capital' and assess you as if you still had it. I could well be wrong though.

Try the CAB?

Tortington · 17/10/2010 12:53

seea financial advisor.

if i were you i would like to get that money in property, even if it were a property that was let out to soeone else.

i would investigate whether you would be able to set up a company to buy the property thereby eluding the benefits people

sarah293 · 17/10/2010 12:57

This reply has been deleted

Message withdrawn

SpottyMuldoon · 17/10/2010 12:59

I know someone who claims HB for the house they rent and live in. They also own a house which they rent out and the rent pays the mortgage. The local council have decided now that the house they rent out counts as capital and they are no longer entitled to HB on the house they are living in. They now have to find an extra £13k a year to pay their rent.

I'd definitely seek specialist help on this as there are certain things that won't be counted as basically 'getting rid of' or 'hiding' the money but the whole area is very complicated.

JustKeepSwimming · 17/10/2010 13:01

Just checked with my DH who knows about these things than me Blush

His advice is:

  1. if there any leeway in the will, consider gifting it to your children, but check as someone said about the 'notional capital'

  2. don't do anything yet, the cuts in benefits are still to be announced and that may affect any decision you make.

JustKeepSwimming · 17/10/2010 13:02

oh and 3) if you can talk to someone at CAB they might be better placed to advise you than the Welfare Officer

SpottyMuldoon · 17/10/2010 13:03

x-posts. Yes, I think that's where I've been getting confused. I'd still want to make damn sure it was the case though. No doubt those rules will change in the not too distant future. Benefit scroungers being able to own a house? Surely not!!

Mumi · 17/10/2010 13:25

You stil have to declare your childrens' money for benefit purposes.

Appletrees · 17/10/2010 13:38

Check to see if money put into a pension counts. That would be a fantastic way to prepare for the future and manage your inheritance.

LucindaCarlisle · 17/10/2010 16:41

Once you get the capital sum you will need to notify the DWP that you now have a capital sum.