Inheritance £150,000

[OneLittleManOneInOven]

Hello,
In need of some serious advice about a sum of money I am about to inherit following the death of my beloved father last year. I am looking to inherit roughly £150,000. I am currently receiving employment and support allowance as I have been suffering from severe anxiety and depression since my dad took his own life and it has been a tragic year. I am also 15 weeks pregnant with my second child. Right now I am receiving full housing benefit for the 2 bedroom flat I live in and tax credits. I am really worried about my situation as I know my benefits will stop as they should but I'm just unsure about how to use this £150,000 and plan for mine and my children's future as I am not working and won't be working until the baby is born at least. Any advice would be greatly appreciated. I want to use this money the best way I can and ensure the kids future.

sorry for the circumstances.

you need to get some proper facts and advice. If you are in an area of the country where you can buy a suitable property with that money (and there are many) that could be a way forward, but obviously you'll still need living and running costs.

I don't think maintenance from the children's father should be affected, but again take advice.

when the money arrives, you need to keep it safe, so it needs to go in two separate financial institutions for protection under the banking guarantee. You can't earn much interest, but you can get 3% on 20k of it in a Santander 123 account, 4% on 5k in a Club Lloyds account, 5% on 2k in a TSB account and 3% on 3k in a Tesco current account. They all need a certain amount paid in a month, but that's easy as you just set up standing orders to move the money around.

The rest will have to go in an easy-acces account for now, at the pitiful rates you get for those. The money should not stay there long term as inflation will destroy it.

you may want to look at investment; but the stockmarket is high now.

Sorry for your loss. I lost my HB and council tax benefit when I inherited (similar amount), I was also on ESA and DLA. My ESA/DLA was unaffected as DLA isn't means tested and my ESA was contribution based. If yours is income based ESA then it will end. Tax credits will be affected by the amount of interest you earn on the inheritance (have to report interest earned to HMRC), but not cut off in the same way as HB etc. But definitely report the amount to all the relevant departments (not just DWP, have to report to local council separately) and get a CAB advisor to make sure they're calculating any adjustments properly.

I put mine towards a house to live in, but we were lucky to get a small mortgage on DH's salary - I couldn't go on the mortgage without a wage and I think it'd be hard for you to get one just on benefits.

Ask your local CAB for (free) advice
I agree put it into property if you can find somewhere suitable . I think for some benefits the limmit is £16,000 savings but I coul be wrong . If so I'd keep some for a rainy day

I agree in a way that buying a house could be a way forward and you'd still be entitled to some benefit rather than keeping the money in the bank and you would lose a sizeable amount of your benefits. But be aware that you will also be liable for property repairs and maintenance so you will need money put aside for that.