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Original poster

Inheritance means we'll no longer get benefits. But I don't want to waste it...

63 replies

craycray · 21/09/2014 13:39

Basically I've been left £20,000 by my grandmother who's just died.
OH earns £12,000 and I have just finished university with a 2:1 degree and am searching for work, but am struggling to find it.
We get around £9,000 in various benefits, but as we now have savings of more than £16,000 this will obviously do down significantly by about half.
I don't want to be greedy but £20,000 would last us 4 years ish if we used it to replace the benefits lost. But we would one day love to buy our own home, when we both finally are able to get good jobs and obviously £20,000 would be an amazing deposit to have ready to go :/
Would I be able to put this money in my son's account instead? Or am I just being stupid?
I might as well just go out and spend all the money on something nice for us, a car or holiday? Which seems slightly ridiculous!

OP posts:

tribpot · 21/09/2014 13:45

Definitely don't put it in your son's account. However, what happens if you have less than £16,000 in savings? How does that affect your benefit entitlement?

Solo · 21/09/2014 13:49

I'm going to be flamed here for this...

Could you put £5k into your sons account? put the rest into a deposit account away from everyday use and temptation so that you do keep your deposit money safe.
I know a lot of people on here will probably tut at this idea, but there are many people out there that would just carry on regardless with benefits even if they were left £200k.

In the grand scheme of things £20k is not a massive amount of money, and it would be a sad thing for your gran's money to mean that you lose half the value of what she left you because of it iyswim?

Nerf · 21/09/2014 13:55

But benefits shouldn't be there as a choice - surely they are there for people without other choices?

GoodboyBindleFeatherstone · 21/09/2014 13:59

Savings don't affect Tax Credits.

GoodboyBindleFeatherstone · 21/09/2014 14:02

And sorry, but if you're going to have to use it to replace benefits I'd just spend it on something like a car or holiday as you mentioned.

LadySybilLikesCake · 21/09/2014 14:07

I'm assuming you're claiming income support/housing benefit/council tax benefit so this has taken you over the 'income' threashold? I'm with Nerf. Benefits are not income or savings, you have your own money now and you don't need them. They are designed to supplement someone who has very little coming in, and you don't have very little. Putting it into your son's account to get around this is dishonest, sorry.

wherethewildthingis · 21/09/2014 14:07

I don't want to be rude, and I've just typed out a response that was rude and deleted it. But - my OH and I are on a low family income which is just marginally over the cut off for tax credits. We won't be getting an inheritance, ever. So I suppose I am wondering why you should get to keep all of your inheritance while we continue to supplement your income?

JanineStHubbins · 21/09/2014 14:09

You are being greedy. Your financial situation had changed considerably as a result of this inheritance and your benefit entitlement should naturally reflect that.

SoonToBeSix · 21/09/2014 14:10

Wherethewildthings as you are not a high rate tax payer you are in no way supplementing the ops income. In fact you are taking more out of the " pot" than you put in.

GoodboyBindleFeatherstone · 21/09/2014 14:11

Yes people are lucky to inherit... But OP's gran didn't work hard and have that kind of money to leave for it to be spent paying the Council Tax.

Nerf · 21/09/2014 14:13

It's a bit like the care home arguments on here except I think you'll get more sympathy as you are receiving benefits. It's all money available that could be used instead if the state paying.

wherethewildthingis · 21/09/2014 14:13

soontobesix how on earth do you figure that?!

vickibee · 21/09/2014 14:16

U can't be on inc support if husband works so guess it is tax credits which are based on income and not capital so you would keep this, lose housing and council tax benefit. Do you have any debt except student loan that you need to pay down.?

Nerf · 21/09/2014 14:18

Just read up on tax credits. In genuinely stunned that you can get tax credits without capital being taken into account.
So OP looks like you'll be in the rules to keep claiming.

Nerf · 21/09/2014 14:19

I'm

FestiveFox · 21/09/2014 14:21

use the 20k to replace your benefits for the next four years
you will feel better for paying your own way and in four years will hopefully have a good job

you shouldn't be taking if you don't need

todayisnottheday · 21/09/2014 14:21

Go and speak to a good financial adviser. They will show you how to get the most from your money without intentionally hiding it. Any money you gift to your ds may well count as your savings because they know people will do this so get proper advice. You will get flamed here for trying to side step the rules.

LadySybilLikesCake · 21/09/2014 14:21

It may not be working tax credits, Nerf. Council and housing benefit are separate and they reduce these as income and savings increase.

SoonToBeSix · 21/09/2014 14:23

Wherethewildthings your education , your dc education if you have any, child benefit ,your use of the Nhs, roads etc, etc

in2theblues · 21/09/2014 14:25

It's yours to do what you want with and if you want to buy a valuable work of art to remember your Gran by it's up to you.

Antiopa12 · 21/09/2014 14:27

Under the new benefit Universal Credit when it is rolled in any families who have been saving for a deposit on a house will not be eligible for support if they are above the capital limits. Effectively, they will lose their child tax credit as it will become means tested under the universal credit umbrella.
Those families whose children become sick or are born disabled so that one parent has to give up work, or families where a parent becomes unable to work , despite being on a low income these families will have to spend their savings until they become eligible for help under universal credit. The pittance that is Carers allowance will still be paid because it is outside the Universal Credit umbrella

LadySybilLikesCake · 21/09/2014 14:27

Do you have any idea about tax? The things which pay for education, child benefit, the NHS, roads etc don't all come from income tax. They also come from VAT, tax on savings, tax on goods and food etc, council tax, vehicle duty, tax on petrol, tax on cigarettes (assuming someone smokes), tax on alcohol etc. I'd say Wherethewildthingsare probably pays in a lot more than she takes out.

Original poster

craycray · 21/09/2014 14:29

It just seems slightly ridiculous that I could go out and blow all the cash on stupid stuff and be better off?
We don't earn a lot of money and have no help from out family who haven't spoken to us since we started our relationship (idiotic skinhead vs asian feud going on). My gran was the last member of my family I had a relationship with and I adored her, I didn't know she was going to leave me this money and would love to be able to do something lovely for my family with it (buy a house). But as we're not in a position to get a mortgage I can't.
If I were to get a job tomorrow that would enable us to support our family I would stop my benefits immediately, obviously! And then I could save my money which would make me so happy!!
We rely on the benefits because even though we are both graduates looking for work and a better job we struggle to find anything.
We are still a low income family, our wages haven't changed at all, it just seems foolish to wittle away.

I suppose I've been a bit panicky and in reality in a years time hopefully I will have a job where I can earn as much as if not more than the amount of benefits we currently receive, in which case perhaps only £5,000 will be have spent as income!

I will check the entitlement if it's less than £16,000 and see what happens.

Like I said, hopefully I won't need benefits for too long but right now we do!

OP posts:

ijustwanttobeme · 21/09/2014 14:46

The DWP or your local authority (if claiming housing benefit), would take a dim view if they were to find out you deliberately deprived (as in spent) yourself of a large sum of capital, in order to continue claiming benefit.

Original poster

craycray · 21/09/2014 14:48

It's the tax credits that will stay the same, the rest will disappear.

OP posts:

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