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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:
Plentyoffishnets · 11/10/2018 02:44

op- definitely don t pass it to your children to claim hb - that would likely be considered deprivation of capital.
Do you have any loans/overdrafts/credit cards or any other debt that needs repaying (not student debt). It is ok to use capital to repay these.
Which part of the UK do you live in? I think in your shoes I'd be looking for a shared ownership place if at all possible. Sometimes you can get a share as low as 25%, you could then put your capital into that part, have security and probably as decent investment and could then claim hb on the remaining share

lboogy · 11/10/2018 03:02

I would speak to a financial advisor. As some have said , a help to buy / shared ownership might be a good idea or even open up a pension account and put the money there. It's probably the most tax efficient thing to do

I think it's sensible to see what your options are. Just because you're on benefits doesn't mean you shouldn't look at ways to support yourself without government assistance. I disagree that you should use it to pay housing costs in the short term. You'll end up back in the same situation when the money is gone.

Good luck xx

ArrivisteRevolt · 11/10/2018 03:05

This happened to my aunt. I think she inherited a bit more but she was always going to need benefits. So the money went to a discretionary trust that does things for her.

Happypuppy · 11/10/2018 05:42

“Go down the drain” ?

Plenty of us had a good portion of our wages “go down the drain” on paying our own rent or mortgage! I’m embarrassed for you OP.

Original poster
PlasticAlternative · 11/10/2018 07:59

Good morning everyone.
To those who gave the constructive advice asked for I thank you. I shall investigate shared ownership once more and the other suggestions.
Haha to those full of righteous wrath. As I said I work full time, I pay tax and I pay most of my rent out of my wages.
My monthly wage is less than my monthly rent. That is how skewed the private rental and low wage world is. I didn't ask for your pissy input or criticism I asked for constructive advice so go shove your judgmental crap where the sun don't shine.

OP posts:
Happypuppy · 11/10/2018 08:07

Pay tax my arse! You’re a drain OP.

Nobody with a shred of decency should be giving you constructive advice on how to screw the system and “hide” 30k.

Original poster
PlasticAlternative · 11/10/2018 08:17

Happypuppy what do you mean by 'pay tax my arse'?
Are you implying that I'm lying about paying tax?
I have no wish to avoid paying tax. I've paid tax all of my waged life (when the wage has been high enough)
I've no wish to avoid paying tax on my inheritance. I have no intention of 'hiding' it either. I want to use it and put it to use.
You seem to have a somewhat black and white vision of people on 'benefits'
What do you think of the ideas mooted above for use of the money? Putting it into shared ownership, is that 'hiding' it or attempting to defraud anyone? Ditto an annuity.

OP posts:
Oldbutstillgotit · 11/10/2018 08:23

Wow, OP I suppose that’s me told ! As I work with DWP I tried to give helpful advice about deprivation of capital - a situation I have dealt with on numerous occasions with rarely a happy outcome . But hey , up to you but don’t complain if / when your benefits are reduced .

Original poster
PlasticAlternative · 11/10/2018 08:30

Oldbutstillgotit and you're input was appreciated, thank you for pointing that out. It wasn't something I had considered. Sometimes it seems like I'd be better off taking the family off on a trip of a lifetime, spending recklessly and generally what I would consider to be throwing this money away, but hey I think it'd be better off being used constructively.
Thank you again to those who get it.

OP posts:
yorkshireyummymummy · 11/10/2018 08:44

My word- you’re an unpleasant poster aren’t you!

Since these people are effectively paying for you to live somewhere you obviously can’t afford you are really bloody rude!

”My monthly wage is less than my monthly rent”
I suggest you use your £30k inheritance to move somewhere you can afford to live. Why should the taxpayer pay for your lifestyle choices??
I wouldn’t mind living in Belgravia but I can’t afford it so i don’t live there.
Move somewhere you can afford.

Happypuppy · 11/10/2018 08:44

You may be paying tax OP, but I feel you’ve drained more out than you have put in.

Go for shared ownership, I did when I was 21 (a long time ago) and it worked out,

Original poster
PlasticAlternative · 11/10/2018 08:55

Happypuppy you feel what you want but it that doesn't make it the truth.
yorkshiremummymummy oh right so I should uproot my children from their school, friends, family? I don't live anywhere like Belgravia. Sounds a bit like Norman Tebbit's on yer bike comment.

OP posts:
chickenchip · 11/10/2018 09:13

If you inherit money you should use it to live on. There would be no need for you to claim benefits as you can support yourself.

I'd love to set up a nice little trust for my family or not spend it on housing myself with any extra money I have but I have to support myself. Why would you be any different to the rest of us? Benefits are there for those that truely need them. You won't.

yorkshireyummymummy · 11/10/2018 10:39

plasticalternative
You should have been living somewhere you could afford before deciding to have children! Why should you have what you can’t afford??
This is an ideal moment for you to re asses your life.
You should move somewhere that you can afford.
And moving schools and making new friends is what thousands of children do with no harm done!

But you obviously are content to live your life being subsidised while trying to work out a grabby way to hold onto your £30k.

Joe66 · 11/10/2018 11:06

The sad fact is if you're rich, tax avoidance schemes avoid millions in tax each year. I wish posters would focus their diatribe on those people, rather than on a poster who is just trying to do their best for their family. There is no shame in claiming benefits for housing costs, and the saddest part is the 16k limit on capital has been in place for at least 15 years. Had it increased with inflation there wouldn't be an issue here. Housing costs are the real issue in this post. An issue successive governments since 1979 have chosen to ignore and are still choosing to ignore. Meantime homelessness has quadrupled under this government in the last 8 years and is continuing to rise at an alarming rate. These are the real issues.

Joe66 · 11/10/2018 11:08

And I don't buy into this idea that the poor shouldn't have children either, or should move 100 miles away, where there is no family support because rich foreigners are buying up property and leaving it empty for years

user187656748 · 11/10/2018 11:16

I can see how its galling to receive an inheritance and be no better off but you have to change your perspective. You are better off because you don't need to rely on the taxpayer to subsidise you (I appreciate you pay tax but you are a net taker not a net giver).

If you receive money and splurge it all then there is a significant risk that you will lose your benefits and then you have neither the benefits nor the cash. As I understand it you could potentially have items gifted to you during the lifetime of the giver (but others will know more about this). So the person who wants to leave you this money could buy you household goods, holidays etc whilst they are still living. However this only works if they have cash in the bank. It doesn't work if they have it tied up in property or need it to live on atm.

Fairenuff · 11/10/2018 13:38

I cannot support myself without government help

But now you can. At least for a while. Why do you think you shouldn't use your own money to live off?

Elasticity · 11/10/2018 14:59

Could they change their will to leave you approx £15k or something?

The remainder could then be passed onto your children (depending on age - held in trust until they are 21 for example).

You can use £15k for some nice furniture, holidays or whatever. Or just keep it for a rainy day.

greendale17 · 11/10/2018 15:01

@Joe66 ah yes it is the rich foreigners fault Hmm

Original poster
PlasticAlternative · 11/10/2018 15:08

yorkshiremummymummy I had my children while I was a lot more affluent. My circumstances are much reduced now.
user1876 don't worry I'm not seriously planning to splurge the money Grin I don't think I need to change my perspective I'm just seeking all the alternatives.
As previously stated if I need to use up to the saving limit I will. It's only in the last year that I've actually been eligible to claim HB. Before that I did manage, with tax credits and wage. Circumstances change.....who knew?

OP posts:
mostdays · 11/10/2018 15:30

I'd definitely look at shared ownership. IDK whereabouts you are or what size home you need, but this 2 bed flat in the Crumpsall area of Manchester is up for shared ownership sale, a 25% share is £20k and then you'd need to pay monthly rent and service charge totalling just over £300.

Original poster
PlasticAlternative · 11/10/2018 15:44

mostdays thank you so much for taking the trouble to look that up. I was under the impression that shared ownership included a mortgage element? I assumed at late 50s I would be too old for a mortgage as the re-payment term is usually maximum 25 years?
I applied for shared ownership about 6 years ago and was told I didn't qualify. This lump may make a difference.

OP posts:
Snog · 11/10/2018 15:56

Could you fund some training for yourself or start a business so that you increase your income and can come off housing benefit?

mostdays · 11/10/2018 16:02

I'm not 100% sure so do talk to an expert (which I'm not- I'm just someone really interested in shared ownership atm!)- but I think it is possible to fund the bought part with a lump sum and pay rent on the rest, I don't think a mortgage is absolutely a requirement.

If you're 55+ there's a special shared ownership scheme for your age group btw www.ownyourhome.gov.uk/scheme/opso/

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