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Original poster

Inherited money

73 replies

Mum8515 · 28/06/2018 22:48

I've been given a large amount of money today (20k), it's been given to me from the sale of my grandads house abroad, It's been divided between a few of us & given the amount of 20k each. My question is we get some housing benefit, a little bit of council tax reduction, WTC & CTC. I want this money to be put aside for my 2 little ones preferably a ISA. What happens in regards to benefits? So confused on what to do. Tia x

OP posts:
NerrSnerr · 29/06/2018 12:29

It does seem really strange that the money from a house sale/ inheritance is in cash.

In your situation I would declare it. There are so many rules with money laundering etc nowadays I would want it to be above board, I know someone who got into a lot of bother as they were given a big lump sum in cash and didn't do it properly, it look a long time to sort out and they were lucky they weren't prosecuted.

Xenia · 29/06/2018 13:23

Cash sounds very dodgy.
However if the grandfather gives it to his grandchildren (and by the way will changes after death are lawful) and that could be as much to ensure your husband doesn't take the money on divorce as to affect benefits, then that might be lawful - ah yes gogo is saying the same.
The cash should go into accounts for the children and perhaps put your name plus a siblings name as co-controlled on the account just in case you ever fall out with the children's father. I don't know if you have to declare assets infant children hold to housing benefit people if the gift went straight to the child.

backaftera2yearbreak · 29/06/2018 13:27

Anything over 16k stops means tested benefits. So that’s your hb and ctr. Interest from savings counts as income for tax credits.

FemaleDilbert · 29/06/2018 13:30

Op i’d get some independent financial advice, but tbh if I could do what you are thinking of doing (passing it straight to your children) and it was legal I’d probably do the same

ASqueakingInTheShrubbery · 29/06/2018 13:37

There is a way to vary the will so that you give up your entitlement in favour of your children and it is as though your grandad left the money directly to them. I don't know whether it would get you out of the benefit problem or if it would be seen as intentionally depriving yourself, you'd have to take legal advice.

Etymology23 · 29/06/2018 13:38

It’s in cash. Legally the right thing to do is declare that. Morally I won’t comment. Logistically it can stay in cash and be used to pay for some day to day expenditure and therefore to free up money to save for your children or pay off debt (debt more urgent than saving for children). Legally you could also look at varying the will.

AlbertaSimmons · 29/06/2018 13:44

If your husband is working, would you be eligible for a mortgage? You have £20k deposit, which with the Help to Buy scheme and developers offers might get you into a home of your own, which in the long long term is a better investment for your children. I don't know where you live of course and it may be that there's no affordable property where you are.

CanaBanana · 29/06/2018 13:44

Don't keep it in cash. You're setting yourself up for problems when £20 and £50 notes eventually get swapped from paper to plastic as your notes will no longer be legal tender. You will have to deposit the money, which shouldn't be an issue as if questioned you can prove where it came from.

Imo you should speak to a solicitor and try to put the money in a junior ISA for your kids. Failing that, only deposit £16k (the benefits threshold) in your account and spend the rest.

glitterbiscuits · 29/06/2018 13:52

If it was left to you in a Will, get the solicitor involved to write a deed of variation (which means you give your inheritance to someone else) in favour of your children

BIWI · 29/06/2018 13:54

Nobody gets an inheritance distributed to them in cash.

This isn't true.

scopello · 29/06/2018 17:30

Are we really talking £20k physical cash as in notes? When my grandparent’s house was sold after his death, taxes were paid before the estate was distributed to his heirs - by electronic transfer or by cheque!

Babyroobs · 29/06/2018 18:57

Why can't people just be honest. I work as a benefits advisor. There is always someone trying to hide money / put it in someone else's account, not notify the appropriate benefit office when circumstances change etc. Gets on my nerves, especially when you see others in so much poverty and actual real need.

NeverTwerkNaked · 30/06/2018 08:09

It sounds super dodgy if it’s in actual cash!
You need to get some decent advice because it would not be remotely pleasant to be prosecuted for benefit fraud

Original poster
Mum8515 · 30/06/2018 15:17

Everyone that's saying it's dodgy because it's cash, it's not! Like I said property was sold abroad & we were all out there when all this was finalised. When traveling back to the UK me, OH & sister bought the money back cash! You don't need to declare more than 10,000Euros at the airport!

Thank you to those of you who understand that it's for my kids & I'm only looking out for they're future as the money was given for them & not me! Of course when the kids are 4 & 1 it's not going to given in there hands. I have proof of sale of the land also where it states it for my kids.

OP posts:
MongerTruffle · 30/06/2018 15:22

You don't need to declare more than 10,000Euros at the airport!

You only need to declare amounts of more than €10k in cash if it is coming from outside of the EU to an EU country.

Aridane · 30/06/2018 15:26

Vary the will to pass direct to your children??

Nearlyadoctor · 30/06/2018 15:35

At no point in your post did you state if was for your children, only that you wanted to save it for your children.
Slight change of story here I think!!

Jayfee · 30/06/2018 15:46

As Aneurin Bevan might say, benefits are a safety net. Only those who need them should accept them.

TotallyWipedout · 30/06/2018 16:02

I've been given a large amount of money today (20k), it's been given to me from the sale of my grandads house abroad

Thank you to those of you who understand that it's for my kids & I'm only looking out for they're future as the money was given for them & not me!

So who exactly was the money given to, OP?

Original poster
Mum8515 · 30/06/2018 16:54

In this Pacific country it cannot make a will to minors. It's been told to us all it's for my kids, also a written letter from my grandfather. So yes technically on the 'will' it's me! But it's for my children. It's a tricky situation.

OP posts:
NerrSnerr · 30/06/2018 16:59

I've been given a large amount of money today (20k), it's been given to me from the sale of my grandads house abroad, It's been divided between a few of us & given the amount of 20k each. My question is we get some housing benefit, a little bit of council tax reduction, WTC & CTC. I want this money to be put aside for my 2 little ones preferably a ISA

You said you'd been given it and you wanted it to be put aside for your children. Not that it's their inheritance.

If everyone who had £20k in the bank or in cash still claimed benefits what do you think would happen to the country? Why do you deserve extra money but not the next person with thousands of pounds.

Original poster
Mum8515 · 30/06/2018 17:07

Nerr I used to work until I was made redundant a few months ago! We never got any HB & CTR then. In actual yes the money is given to me & I want it to be put aside exactly what my grandfather wanted.

OP posts:
TotallyWipedout · 30/06/2018 19:15

@Mum8515 If your grandfather wanted that, why didn't he stipulate it? I think you are being disingenuous, here. The truth is presumably that you want to carry on claiming benefits, and 'hide' the lump sum by saying it belongs to your children.

NerrSnerr · 30/06/2018 19:27

Legally it's not tricky though is it? You have the money and you shouldn't be claiming benefits if you have it. If it was all above board why not discuss your dilemma with the DWP?

thelonggame · 30/06/2018 19:32

I'd really like to put all of my wages in ISSAs to save for my childrens future, then claim Housing Benefit, Council Tax reduction, Child Benefit, Working Tax Credit and what ever CTC is.
Where do I sign up for this please?