Best way to declare inheritance to DWP

[JPWG]

Hi everyone
im just looking for a little advice, ideally from those who’ve been through this themselves. Apologies for the length of the post but I want to be sure I include all the relevant info

i am long term disabled and in receipt of esa and housing benefit as I have been deemed unfit to work.

A relative passed away last year and named me as a beneficiary in their will. Their property has just been sold and the debts to the estate are in the process of being settled so I should be receiving my share shortly. As it’s a percentage of the estate I’m entitled to I’m not sure of the exact amount but it is likely to put me over the 16k savings limit, but not by much.

i have some debt, and am a little behind on a couple of my priority bills, the first thing I will do is clear these and there’s a chance this will put me under the 16k or very close to it

i also genuinely need some household things, flooring and a new sofa as I moved house a few months back and haven’t had the money to sort these things out.Nothing extravagant and I’ve no intention of buying more expensive items just because the money is there.

i want to make it really clear that i intent to be 100% honest with the DWP and am in now way trying to deprive myself of assets to stay on benefits
if I am over the limit and that means my claim stops then it is what it is, although if that is the case I will lose around £1300 a months so it likely be reclaiming in the not to distant future because between rent, bills, food and disability related costs I’ve related anything left each month.

its my understanding that paying for certain things like debt and ‘good and services’ are okay and would not count as deprivation So if what o receive is over 16k but I end up under it by paying for ‘acceptable’ things I wouldn’t automatically lose my money

But, that there’s no hard and fast rule about what’s okay and what isnt

So

Do I need to call the DWP when the money goes in, tell them how much but thst have debts to pay

Or am I best paying what’s needed
Then writing to them telling them what went in, what’s been paid out (with invoices/bank statements etc) and asking them to reassess from that?

I have struggled financially all of my life, and I very much want to use this opportunity to get in to a good position. To be debt free and sort out my home, to have a little in the bank for any emergencies that might arise. I’m never likely to see money like this again and I feel incredibly fortunate

But I don’t want to do the incorrect thing in terms or letting the DWP know and end up in trouble, or to spend on anything that they wouldn’t deem acceptable because even if it is just over 16k it isn’t going to last forever no matter how careful I am

You need to tell the DWP and your local authority as soon as the money is in your possession. For legacy benefits it counts as yours from that moment; the thing mentioned above about capital being reviewed at the end of each assessment period is a UC thing. If over £16,000 then income-related ESA and housing benefit (and council tax reduction if you claim that) will stop altogether. If part of your ESA is contributions-based, then that will continue. You can ring up to tell them; when I did this a few years ago (on the day the money landed in my account), the DWP and LA both took my word for it and simply stopped the income-related benefits, but I've read on forums that sometimes people are asked to send bank statements showing their capital at this point, even though they're asking for money to be stopped.

You are correct that there are no hard and fast rules on how much you can spend and on what, but paying off anything but priority debts can and (from what I understand) quite likely will be seen as deprivation under legacy benefit rules. So for example, you couldn't just choose to pay off a credit card or bank loan because you'd rather not carry on paying the interest while you have the money to clear the whole debt sitting in your account, and have that seen as okay by a DWP decision maker. It's only with UC that paying off debts is never viewed as deprivation of capital.

When the capital falls below £16,000, you let them know and they will ask to see evidence of your new level of capital and reviewing your spending to see if (in their opinion) there has been deprivation. I had to send 3 years' worth of bank statements in a box! I also included a letter justifying any significant or unusual transactions. Unless you are in exempted accommodation (which I am, so I could go back to claiming housing benefit), your housing costs will then have to come from UC. If your ESA claim remained open and you had been in receipt of the Severe Disability Premium, you should have the income-related ESA reinstated before claiming UC so that you get the transitional element included. There will be a deduction taken from your ESA or UC while your capital remains between £6,000 and £15,999.

Post deleted - facts not fully understood when writing.

The minute the money arrives in your bank account, you inform them. full stop.