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Original poster

What to do with inheritance?

54 replies

PlasticAlternative · 10/10/2018 20:55

When on Housing Benefit, late 50s, private renting.
I'm just worried that as the money appears the housing benefit stops, the inheritance then is used to top up my income and dwindles away to nothing.
Is there anything I can use it for to stop this happening?

OP posts:
GeorgieTheGorgeousGoat · 10/10/2018 20:56

How much?

travailtotravel · 10/10/2018 20:57

Can the executors put it in trust for you?

baldisbeautiful · 10/10/2018 20:59

I guess you would no longer need the benefits as you would have means to support yourself. Benefits are designed to help those who cannot support themselves surely?

wurzelburga · 10/10/2018 21:06

Have you already inherited the money?

Depending on the amount, it might be worthwhile getting the person who is leaving it to you to leave it to a trust which would administer the funds in your interest. If this is done properly (you need a solicitor with experience of trusts) it will not impact on your entitlements to benefits. But it is usually only worth while if substantial sums.

Original poster
PlasticAlternative · 10/10/2018 21:15

£30k approx

OP posts:
Original poster
PlasticAlternative · 10/10/2018 21:17

I work full time but my my wage is low and so I get HB.

OP posts:
GeorgieTheGorgeousGoat · 10/10/2018 21:20

Ok that’s a decent amount. Why would you expect to continue receiving benefits when you don’t need it? Confused

Original poster
PlasticAlternative · 10/10/2018 21:20

I haven't inherited it yet.

OP posts:
Oldbutstillgotit · 10/10/2018 21:21

Savings cut off for HB is £16,000 but you can’t just spend £14,000 to stay on the Benefit as you could be seen to be deliberately depriving yourself of capital. You need to use some of it to pay your rent rather than ask the taxpayer to do so !

Thelaststand · 10/10/2018 21:26

I’d get financial advice on what’s best.

30k seems a lot of money but it depends on a lot of factors. That wouldn’t see us the year out.

If I was you I’d pay for a consultation for a private financial advisor to see what’s best.

Original poster
PlasticAlternative · 10/10/2018 21:29

Yes, yes I'm well aware of the facts.

I'm looking for constructive use of that money.
Apparently its not worth putting toward a pension.
It won't allow me to get on the housing ladder.
Start a business?
Can I put it in trust for my children without losing it?
Etc

OP posts:
Original poster
PlasticAlternative · 10/10/2018 21:31

Thank you Thelaststand

OP posts:
travailtotravel · 10/10/2018 21:42

It's certainly worth looking at a pension!! Is it not enough for a deposit for a shared ownership flat or similar?

Joe66 · 10/10/2018 21:42

Can you buy an annuity, that way the capital is gone but you have an income which although will be taken into account as income and so your hb will reduce, will not debar you from claiming, and will be useful extra income? Better than using it to pay rent until it erodes to nothing, although your hb will reduce as a consequence.

Joe66 · 10/10/2018 21:44

And of course it goes without saying that the purpose of buying an annuity is to boost your income not to ensure you continue receiving hb.

Original poster
PlasticAlternative · 10/10/2018 21:50

I have no wish to simply avoid losing the HB. Rather I wish to not see the inheritance go down the drain.
I am under the impression that I'm too old to get any kind of housing other than rented or HA. Any mortgage period would be too short.
Similarly I've been advised that 30k at this stage in my life would be a drop in the ocean as far as a pension is concerned.

OP posts:
sproutsplease · 10/10/2018 21:59

It isn't going down the drain, it is providing for yourself as you should if you can. People pay taxes to support those who need it, tax avoidance isn't great for society.

Joe66 · 10/10/2018 22:03

30 k at the age of 58 will buy you an income of around 2k a year, more if you smoke.

Original poster
PlasticAlternative · 10/10/2018 22:07

Joe should I take up smoking? Grin

OP posts:
Raver84 · 10/10/2018 22:07

Use it to pay for your housing costs then you can go back on benefits if or when you need to. Why do you see paying your own housing costs as dwindling it away?

cupofteaandcake · 10/10/2018 22:13

If you havent yet received it I think you can pass it directly to your children ie you could pass some of it and keep some howevet I'm not 100% sure on that.

I do agree with other posters though that you seem to want to avoid losing benefits presumably you think your entitled to them.

Original poster
PlasticAlternative · 10/10/2018 22:15

sprouts and raver
The fact that I am on a low wage and the fact that private rents are very high combine to mean that I cannot support myself without government help. Tax credits indicate that the government admit this scenario to exist.
I will now never be able to earn a wage that enables me to adequately house and support myself and my children.
Anyhoo.

OP posts:
Original poster
PlasticAlternative · 10/10/2018 22:18

entitled? no.

If needs be I will use it to top up my income down to the maximum amount of savings allowed.

OP posts:
Babyroobs · 10/10/2018 23:23

if you can support yourself for a while then that is exactly what you should do. These type of threads are annoying.

sproutsplease · 11/10/2018 02:26

The problem with tax avoidance is that it is always very easy to see why one shouldn't pay tax and everyone else should.
You can of course seek financial advice to minimise your losses, there are saving schemes which minimise tax paid.