Money when caring responsibilities end

[Doable]

My relative, in their 60s now, has just lost the person they've cared for for 20 years. They are inheriting their home and some capital. As I understand it the total amount is under the IHT threshold.

Before this, as a household, they had an income from the deceased person's pension and carers allowance etc which have obviously stopped.

They have limited capacity for work and are considering doing buy to let with the capital in order to have an income. I'm not sure they have enough NI contributions for a state pension of their own eventually.

Has anyone been in this situation or know where to go for advice?

They can apply for a pension forecast which will show their NI contribution record and any gaps, the UK Gov website has a link. If they've been receiving certain benefits then they will have had NI stamp paid during that period.

If they've been claiming a Carers Allowance those 20 years... they'll have had NI contributions. As PP says - state pension forecast.

That's helpful, I'll suggest it.

They aren't quite at pension age yet though so still need to decide what to do with the capital to get an income

If they need the capital to bridge the gap until the state pension, which they should receive if they've had caring responsibilities, it needs to be saved rather than invested, as they can't risk any money they need in the short term. All they can do is get the most interest possible, by spreading it between instant access and fixed term accounts.

If they don't get a full pension, it's likely they will be entitled to pension, credit, so that's always worth checking out, as it is a gateway to other help.

You also say they have 'limited capacity for work' so would that mean they're entitled to UC now? It's always worth anyone on a low income doing a benefit check every time their circumstances change, to see if they're entitled to help.

Is there any scope for downsizing if they're going to struggle for money? A smaller home may free up money to live on, and be cheaper to run, so more affordable.

https://www.gov.uk/check-state-pension

Secondly the person only has until 31 July to fill any years where they have not paid enough National Insurance "stamp". However if they claimed carers allowance or unemployment benefits this should have paid their "stamp". But they need to check using their NI number & it will show them per year.

https://www.gov.uk/check-national-insurance-record

If they are considering BTL they need to do their research, because there are lots of rules & regulations related to being a landlord

Extra stamp duty
High deposit to buy

Will they rent property via an agency or manage themselves ?
Will they have money for repairs & emergencies?

They will need
Landlord insurance
Yearly gas certificate
5 yearly electrical safety certificate
Money to pay council tax & utilities when the property is empty (no single person discount)
Self assessment yearly declaration to HMRC
Etc

It is not easy money !

If they do BTL please make sure they buy a property with energy classification of C or above. Otherwise soon they'll need to update all of the insulation etc at great expense