reducing residual household income for a student maintenance grant

[mme0807]

Hi,

I am a single parent earning £32000. I have been left £5000 in a will. If I invested this in an AVC would it reduce my residual household income by £5000 and therefore increase my childs student maintenance grant?

I am finding it very difficult to find an answer.

Thank you

According to the Direct Gov site, the calculations for student maintenance grants are based on gross income. So increasing AVCs to a pension are unlikely to affect that.

Bequests are not taxable to the recipient (IHT is paid on the estate before bequests are distributed) and don't count as gross income for award calculation purposes.

If you're still not sure, your local CAB may provide better information.