Page 2 | Inheritance while on Universal Credit: what are my options?

Stressedmum6761 · 2026-08-26T20:43:50+00:00

Hi everyone! 👋 I'm currently losing my marbles and need to speak to anyone who's been in the same boat. My nanny passed away nearly 2 years ago now and it's taken a while for her things to be settled and sold etc. My family passed me a letter today addressed to me from my sweet, beautiful nan and a cheque for nearly £12K. I've been in absolute bits all day I keep bursting into tears. I've never had this much in my life and never ever expected anything from my nan at all and it's absolutely thrown me. The thing is I know I should be absolutely THRILLED with this money, I'm on my own with DD who's 6 now. We've just moved into a council house 2 months ago and I'm on UC top up which also covers my rent, my job doesn't pay well but it's a school job and I get my holidays off with DD. I'm panicking more than anything because I know that as soon as I cash this cheque UC are going to deduct money each month (about £120 if my maths is correct). My family said they know nan wanted me to put a deposit down on a house, which again I know if I get a mortgage my UC stops and I'm financially liable for the payments and any repairs etc if anything goes Pete Tong. I'm thinking about just putting most of it in a LISA for now and potentially in the future buying a house...maybe a once in a lifetime holiday with the rest. I'm just torn because if I buy a house, I'll be so much worse off than I am now getting help from UC with rent payments etc. I've just moved into this house and started decorating and making it my own. I'm worried about the money sitting there and me being so scared to spend anything while also having money deducted from my monthly payments. Again, I'm absolutely ecstatic I've got this chunk of money for security but the fact that it's going to effect me whether I spend it or not is flapping me to the core. What do I do? Has anyone had experience with coming into money while also being on benefits? Thank youuu from a very emotional and stressed mum.

olivietolivie · Yesterday 22:15

Have a look into shared ownership. You could use your £12k as your deposit and for buying fees. Rent half the property and UC will cover the rent element plus service charges I believe. Best of both worlds whilst you get more on your feet hopefully in the future and your earnings increase.

Original poster

Stressedmum6761 · Yesterday 22:15

BrokenBiscuitss · Yesterday 22:12

if I get a mortgage I would be rightfully so liable to pay the payments in full on my own
So youre getting high and mighty about feeling strongly that people who have mortgages should be paying their way, but you meanwhile should feel relaxed about having the taxpayer pay for your housing while you inherit five figures?

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What is your problem 😂 I said rightfully so as that's how it works. If you decide to buy a house the government won't pay anything towards it? If I put a post saying I can't afford my mortgage repayments and wanted advice on getting help I'm sure you'd be getting on my back telling me to sell the house if I can't afford it.

OP posts:

Kingdomofsleep · Yesterday 22:15

Ineffable23 · Yesterday 22:09

So I guess what you need to work through in your head is:

If you bought, how much would the mortgage cost you each month, and could you afford that? If you couldn't then that option is dead and you can move on.
If buying isn't viable, is there anything you need to do to get your council property up to scratch? I understand they often come without carpets, white goods etc. That could be quite expensive but also a good investment in your future if you're going to stay there for a long time.
Do you have anything sitting on credit at the moment that needs paying off? Hopefully not, but if you do, you should pay it off.
Are your transport needs met? E.g. do you need a bicycle or anything like that to help you commute to work?

So basically, use it to secure your future but in sensible ways that don't risk you being accused of abusing the system.

I love point 4. You could buy a cargo bike with some of that money... for us, we bought one recently (beginning of this year) and having one has simplified school runs so much that I've taken on more work and so our income has (modestly) increased.

Could that help you op?

XenoBitch · Yesterday 22:15

BrokenBiscuitss · Yesterday 22:12

if I get a mortgage I would be rightfully so liable to pay the payments in full on my own
So youre getting high and mighty about feeling strongly that people who have mortgages should be paying their way, but you meanwhile should feel relaxed about having the taxpayer pay for your housing while you inherit five figures?

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Lay off. This is not AIBU. OP is after advice, you basically trying to turn this into a benefit bashing thread is not on.
She said she would rightfully be liable to pay her mortgage, which is correct and also not a dig at taxpayers or other people with mortgages.

She might not be able to get a mortgage anyway, so the fact you think she must use her inheritance for a deposit is neither here nor there.
If that is the case, she will have deductions until she has less then £6k.

AutumnAllTheWay · Yesterday 22:17

BrokenBiscuitss · Yesterday 22:02

Well thats rhe ethical part. This is a deposit. Use it for that and let someone ib actual need have a council property

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Rubbish. 12k will go nowhere on small wage

AutumnAllTheWay · Yesterday 22:19

Can you get a decent car and pay upfront for a year's costs on it?

Reliable transport is massive, especially on your own with a small child

BigAnne · Yesterday 22:20

The first £6000 of savings is disregarded.

Kingdomofsleep · Yesterday 22:20

AutumnAllTheWay · Yesterday 22:17

Rubbish. 12k will go nowhere on small wage

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I agree, it is not a deposit for a house. But a second hand car, or a really decent bike, can open up job options

Original poster

Stressedmum6761 · Yesterday 22:20

BrokenBiscuitss · Yesterday 22:14

Well not really damned if you do: you could put the money down as a deposit on one of the 110K homes available in your area and get a better paying job, albeit one that doesnt allow you holidays with your DD. As millions of mothers in the country do.

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"Get a better paying job" are you thinking about anything before you type? The holidays are a plus so I don't have to fork out for childcare while I work, which millions of mothers cannot afford, which in turn is putting millions of children further into poverty. I sincerely think you're in a very good financial position for you to have this mindset on other peoples lives.

OP posts:

Cloverroll · Yesterday 22:20

You can have up to 6k in savings.

Use the other 6k for a car.

XenoBitch · Yesterday 22:20

Also, the fact the £12k is a cheque means you have a bit of breathing space to go over your options.

ILoveAGingerCat · Yesterday 22:20

Are people seriously suggesting that £12K is a massive amount of money, and that the OP should sign off Universal Credit and use the money to live on/pay her rent until it's gone? PMSL. Oh and 'why aren't you BUYING a property now you have this ENORMOUS sum of TWELVE GRAND, and putting the twelve grand down as a deposit, and giving someone more DESERVING a chance to have your council house?!' LOL, no-one in their right mind would give up their precious social housing property for a measly 12 grand!

Pay no attention to the people suggesting this @Stressedmum6761 Keep hold of your 12 grand. it's not that much, it's 6 to 8 months private rent in some places, in other places it is less! You do NOT need to go and put a deposit on a house. (To buy!) You stay in your social housing home.

These are the same posters who think people should be made to give up their £500 a month social housing property, when their household income exceeds £30K a year, and go into a £1750 a month private rent property, with no security of tenure. Putting them into much worse poverty than they were in when they qualified for social housing.

You have asked on the wrong place here OP. Many posters on Mumsnet hate people in social housing having a reasonable quality of life. They think they should all be living in penury.

I know what I would do if I was the OP, but I'm not gonna say on here. Giving up my social housing property is something I would NOT be doing.

...

Original poster

Stressedmum6761 · Yesterday 22:21

AutumnAllTheWay · Yesterday 22:17

Rubbish. 12k will go nowhere on small wage

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Honestly I really think this person has no idea on how far money goes.

OP posts:

OakleyAnnie · Yesterday 22:22

Are you sure you can’t have savings and still keep your benefits? It’s not going to go far and I’d keep a hold of the council house if I were you. Any way you can invest the money? I’ll be shot down but can a family member hold on to it and invest it for you? It’s not all that much and maybe you can save a bit and then use it as a deposit on a house when it’s worth a bit more.

Ophy83 · Yesterday 22:22

Surely you save the £12k and stay in the council house. You are still eligible for UC but lose £4.35 per month for every £250 over £6k savings, which initially amounts to a reduction of £104.40 per month universal credit though the reduction will decrease as you use your savings.

HewasH2O · Yesterday 22:22

I was just about to suggest a car. Do you need anything for your house such as a washing machine, dishwasher or furniture.

Save half as a buffer where you can access it if you need to. Hang onto your council house if you're happy with it's location etc. It would be challenging to commit to a mortgage with only £12k & a PT job.

Sidebeforeself · Yesterday 22:23

ILoveAGingerCat · Yesterday 22:20

Are people seriously suggesting that £12K is a massive amount of money, and that the OP should sign off Universal Credit and use the money to live on/pay her rent until it's gone? PMSL. Oh and 'why aren't you BUYING a property now you have this ENORMOUS sum of TWELVE GRAND, and putting the twelve grand down as a deposit, and giving someone more DESERVING a chance to have your council house?!' LOL, no-one in their right mind would give up their precious social housing property for a measly 12 grand!

Pay no attention to the people suggesting this @Stressedmum6761 Keep hold of your 12 grand. it's not that much, it's 6 to 8 months private rent in some places, in other places it is less! You do NOT need to go and put a deposit on a house. (To buy!) You stay in your social housing home.

These are the same posters who think people should be made to give up their £500 a month social housing property, when their household income exceeds £30K a year, and go into a £1750 a month private rent property, with no security of tenure. Putting them into much worse poverty than they were in when they qualified for social housing.

You have asked on the wrong place here OP. Many posters on Mumsnet hate people in social housing having a reasonable quality of life. They think they should all be living in penury.

I know what I would do if I was the OP, but I'm not gonna say on here. Giving up my social housing property is something I would NOT be doing.

...

Edited

OP has to declare savings over 6grand though.You dont sign off UC..it tapers off as your income changes. She can still benefit from her inheritance to the tune of £6k. The remainder is deducted from her UC so in effect staying her inheritance for her UC. That’s the way it works,

Sidebeforeself · Yesterday 22:24

OakleyAnnie · Yesterday 22:22

Are you sure you can’t have savings and still keep your benefits? It’s not going to go far and I’d keep a hold of the council house if I were you. Any way you can invest the money? I’ll be shot down but can a family member hold on to it and invest it for you? It’s not all that much and maybe you can save a bit and then use it as a deposit on a house when it’s worth a bit more.

Of course you can’t!

Original poster

Stressedmum6761 · Yesterday 22:24

ILoveAGingerCat · Yesterday 22:20

Are people seriously suggesting that £12K is a massive amount of money, and that the OP should sign off Universal Credit and use the money to live on/pay her rent until it's gone? PMSL. Oh and 'why aren't you BUYING a property now you have this ENORMOUS sum of TWELVE GRAND, and putting the twelve grand down as a deposit, and giving someone more DESERVING a chance to have your council house?!' LOL, no-one in their right mind would give up their precious social housing property for a measly 12 grand!

Pay no attention to the people suggesting this @Stressedmum6761 Keep hold of your 12 grand. it's not that much, it's 6 to 8 months private rent in some places, in other places it is less! You do NOT need to go and put a deposit on a house. (To buy!) You stay in your social housing home.

These are the same posters who think people should be made to give up their £500 a month social housing property, when their household income exceeds £30K a year, and go into a £1750 a month private rent property, with no security of tenure. Putting them into much worse poverty than they were in when they qualified for social housing.

You have asked on the wrong place here OP. Many posters on Mumsnet hate people in social housing having a reasonable quality of life. They think they should all be living in penury.

I know what I would do if I was the OP, but I'm not gonna say on here. Giving up my social housing property is something I would NOT be doing.

...

Edited

Thank you so so much for this. Not going to lie some of these replies have made me cry, why are people so cruel? 😕 they clearly have no idea on cost of living and are probably very well off too. I tell you what I won't be getting advice from here again, some of these people are so out of touch it's insane.

OP posts:

bababamama · Yesterday 22:24

shared ownership?

Happyd · Yesterday 22:26

if you have £6000 your fine over £6000 they take £2.45 for every £500 over , your money stops once over £16,000 .. if you have a mortgage your rent allowance would stop , so depending on your circumstances you may or may not be eligible once your housing allowance is taken off ..

XenoBitch · Yesterday 22:26

bababamama · Yesterday 22:24

shared ownership?

Yep, UC will cover the rent part.

SunnyAgain · Yesterday 22:27

I got a mortgage with Nationwide and the Tax Credits that I received at the time were counted as part of my income. It may be that they would regard UC in the same way. (The child maintenance I received from my ex was also included in
my income total),

bittertwisted · Yesterday 22:27

Stressedmum6761 · Yesterday 22:11

I'm sure I'd have people telling me I should of invested the money and used it wisely if I was posting about spending it all on living expenses and was back on benefits 🙄 damned if you do damned if you don't in this world.

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No I’m afraid you will have to spend it on paying for yourself it’s gone then resume UC

Original poster

Stressedmum6761 · Yesterday 22:28

Ineffable23 · Yesterday 22:09

So I guess what you need to work through in your head is:

If you bought, how much would the mortgage cost you each month, and could you afford that? If you couldn't then that option is dead and you can move on.
If buying isn't viable, is there anything you need to do to get your council property up to scratch? I understand they often come without carpets, white goods etc. That could be quite expensive but also a good investment in your future if you're going to stay there for a long time.
Do you have anything sitting on credit at the moment that needs paying off? Hopefully not, but if you do, you should pay it off.
Are your transport needs met? E.g. do you need a bicycle or anything like that to help you commute to work?

So basically, use it to secure your future but in sensible ways that don't risk you being accused of abusing the system.

Thank you for this, solid advice. I have a car which I need to finish paying off so I think I will be doing that first and foremost. The house also does needs a lotttt of renovation which I can also add to that. I've been decorating on a budget so far so maybe I can decorate a bit more lavishly!

The rest I may put into an ISA for DD for when she's old enough too.

OP posts: