Universal credit and inheritance

[User36362537363344]

I am a newbie to UC. Just changed over from tax credits. Dh works full time, I a currently unemployed, a stay at home parent/carer, 2 children with SEN. we were receiving about £100 PW on tax credits. Don’t know how much UC we’ll get.

we have a mortgage and get by just about but the top up from tax credits really helped us. We’ve never had much in the terms of savings other than a grand or two. As our house seems to be a never ending money pit. We don’t have many luxuries.

I am likely to come into inheritance soon, unsure on amount at this time. I know that it effects UC but how much?

what happens if you just spend it? I’m not into spending money for the sake of it however both cars are having problems and one will likely need to be scrapped and replaced. We also need a boiler as ours is on the blink and our kitchen is falling apart and needs replacing and our fence is falling down after the bad weather

if you just spend an inheritance is it frowned upon?

does inheritance effect carers allowance?

it won’t be a huge amount of money but likely over the £6000 threshold.

I feel bad for asking as my relative has just died but I feel like we’ve just applied for UC and it’s going to change in the near future already!

My aunt had an inheritance. Theresa calculation they do and she had to keep receipts for everything she spent it on.

It’s £16000 and then UC ends. After £6000 it’s declared and money taken off.

Thanks guys! I’m a newbie to UC.

it would be home improvements and potentially a car. Home improvements so desperately needed as we’ve never had the money to do everything at once! So it will be massively beneficial.

For each £250 or part of over 6k you will lose £4.35 of your Uc each month. If you end up with savings over 16k then you would lose any UC.
It is fine to spend the money reasonably on things you need. Things like giving large sums of money away, putting in kids names etc would be considered deprivation of capital and not allowed

fab, thanks! It really would be home improvements and potentially paying off my £2000 debt so it’s gone! Hoping it could stretch to a paying towards a new kitchen as ours is falling apart and desperately needs an upgrade! Not sure if there would be much left after that anyway. Boiler also needs replacing but we would try find the money for that regardless of any inheritance.

Op if your boiler is old enough you might qualify for a grant to replace it since you're on uc. Have a look at the eco 4 government grant scheme to check if you do. As others have said uc will not treat reasonable spending as deprivation. Home repairs, replacement cars, new clothes and a holiday are all allowed, among other things, so don't worry.

@YourSnugHazelTraybake thank you. We have looked into this before but wasn’t eligible. Our boiler works to the extent we get some heating and hot water but it’s always having problems. Irs about 10 years old but it was a cheap boiler that previous owner put in.