Can I claim UC if I have money from a house sale?

[Moominmama79]

My husband and I are separating and we've just sold our house so will be splitting the funds from the sale. I'm not currently working at the moment, I was made redundant just before lockdown earlier in the year. I'm moving away with my son and will hopefully find work soon but I know it will be a struggle in the current climate. I've looked into claiming universal credit and know that you can't have savings over £16,000. The money from the house sale will be more than that. I'm sure I read that if you have money from a house sale it doesn't count as savings if you're planning on buying another property but now I can't find where I read that so not sure if it's right. Anyone else been in a similar situation? I'll be renting when I move and plan on buying again once I have a job and a regular income. I don't really want to have to use the money from the house sale to live off as it will go towards a deposit when I can buy again but if I'm not entitled to UC I know I will have to.

Not sure at all as I've never used UC - but at the risk of being completely torn apart is there someone you trust to "look after" the money for you. A parent or sibling? So there's nothing in your name whilst you apply. If this is even legal.
When buying a properly it may mean that you have to have something drawn up by the solicitor that whoever is "gifting" you your own money back - that they have no financial interest in the property moving forward.

@zippityzip

Not sure at all as I've never used UC - but at the risk of being completely torn apart is there someone you trust to "look after" the money for you. A parent or sibling? So there's nothing in your name whilst you apply. If this is even legal. When buying a properly it may mean that you have to have something drawn up by the solicitor that whoever is "gifting" you your own money back - that they have no financial interest in the property moving forward.

OP there are rules about disregarding capital. Citizens advice may be able to help.

Definitely do not give money away. If you deliberately get rid of money like this at best they just notice immediately treat you as having it and give you no universal credit. Otherwise worse you may get an overpayment, investigation and or prosecution for fraud.

www.entitledto.co.uk/help/Deprivation-of-savings-and-other-capital-Universal-Credit

Ah then completely disregard what I said.

You have 26 weeks to buy a new house otherwise your money will be treated as savings

Thank you @blacktop! I thought I had seen this somewhere so that's good to know. That gives me time to sort myself out and won't have to worry about a house deposit. Do you know if they ask for any evidence or anything? How do they know if you're planning on buying another house, do you have to prove it and how??

Thank you @Lockdownlooks I thought that might be the case!

assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/899061/admh2.pdf

H2119 specifically

Thank you @carben! I think I might be ok from what I'm reading