Inheritance while on Universal Credit: what are my options?

[Stressedmum6761]

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.

OP isn’t just on UC - she works too. Are you saying that she shouldn’t be allowed to save anything of the wages she works for ?

Yes I will be eligible, and I have looked into help with montage interest. But as I said it’s just kicking the can down the road. It’s meant to be used short term and is (obviously) only a loan which accrues interest. So if/when someone finds themselves in a better position their payments will increase.

This is why I caution OP giving up her rental unless she is pretty confident she’ll be able to carry a mortgage - for many years obv.

I agree. I wouldn’t give up the security of a council home, especially as a single parent. I think there’s scope for paying off the debt because all of it is legally enforceable so would be allowed under UC rules. She could then look at what essentials she needs for her new home and check that spending on those wouldn’t be seen as deprivation of capital. That would go a significant way to not only reducing her outgoings, but reducing the capital so that it hopefully won’t take long to get back under the minimum threshold.

I do wish people would make it clear when they are stating an opinion, or when they are stating a fact. Perhaps the posts could be colour coded so that we can skip the 'If I were running the world, the rules would be...' posts.

Bottom line: Yes, you'll have a deduction. No, your claim won't stop. Paying debts is not deprivation of capital. Payment for reasonable goods and services is not deprivation of capital. DWP will not advise you of whether something is deprivation of capital before you spend the money, so keep receipts, and my advice would be that if you are replacing something old with something new, take a photo of the old thing before you replace it to have in case they decide it was unreasonable expenditure. It's unlikely to be needed but it would save stress.

All of which has been said before. And IME as a benefits adviser there’s plenty of advice about what is and isn’t deprivation of capital when it comes to expenditure on essentials for a home. I’ve known UC advisers talk claimants through this kind of thing on the phone, advising generally on what is and isn’t ‘essential’.

Why is the solution to a high benefits bill to take even more of those that already contribute the most….?

What makes you feel so entitled to the wealth of others? What gives you the right to take what isn’t yours?

Why do people who claim be "robbed" of their taxes, have a go at people at the very bottom on here?

I smell a Tory.

It’s primarily not enough applicants full stop. Of course you get the applicants that are widely under qualified (or have completely misunderstood the ad) but in general we just can’t enough qualified candidates and try to find a way to bring those that don’t meet the full spec on board via on the job training etc.

I work in engineering so it’s engineers, PMs, admin etc that are needed with entry requirements being either degree or equivalent or via apprenticeship route. So in theory, nothing overly burdensome holding most people back.

Because they think they're in with the 1% so they can feel superior to people even though they're also being shafted by them, just like everyone else.

Sorry, what? Nothing "overly burdensome holding most people back".
A degree is a pretty big deal. A degree in a subject you want... even more so.

That poster has already had plenty of their desired reactions, so we can stop feeding it 😊 just accept that they're absolutely convinced there is an elite of tax payers (constantly forgetting that even some of our NHS and education staff have no option but to claim UC to top up their wages and also pay tax) who are also completely immune to any future crisis or life altering event that may see one of their elite in a situation where they may need help. It is extremely easy to be complacent and judgemental from the top of an ivory tower like that. Let's remind ourselves that the same poster stated that such events are "insurable." I read that out to my severely disabled veteran husband who, frankly, laughed. The support he does receive is completely swallowed up by his needs, which is why I work around caring for him. His military pension knocks out MT support and, of course, as a WB specialist I know how the system works. I could, also, not work, with no issues and -gasp!- no longer be a tax payer! If God forbid he had a third stroke, would I worry about ExpectMore wagging her disapproving finger at my fecklessness if I eventually had no choice but to stop work to ensure he was safe and alive? Answers on a postcard are most welcome.

I very much remember where I come from. I always fight for the under dog and go out of my way to ensure those from disadvantaged backgrounds get a chance. All I require them to have is the right attitude and aptitude and I couldn’t care less for qualifications or specific experience (unless needed for specific tech roles) as I can usually develop on the job. I also always go out of my way to find a way to bring ex service personnel in as I find they generally always have a lot to contribute, a fantastic attitude, and deserve a helping hand for their service (particularly also as the non-officer route have also often come from socioeconomicly deprived backgrounds, ticking my first box!).

Dont mistake me, I’m not very well off now, I would for example consider £12k a lot of money, but I’m ok and fear not being able to provide for myself, hence the insurances, the work ethic etc.

Which is the crux behind my main point: I believe in people. I believe the vast majority of people are capable. They just need to be given a chance and importantly: they need to take it and work hard at it. I just don’t believe we should write people off or Molly cuddle adults by accepting an attitude of just sitting back expecting the government (= other people) to look after a grown adult their entire adult life. It grates my soul.

note; before anyone incorrectly pipes up…. I exclude disabled folk needing support from the above as as I’ve said previously, I believe we should be doing much more than what we’re currently doing as a society to support them. And by freeing up money spent on those actually capable of providing for themselves we’d have more funds to spend on those that can’t.

I should also have added…. “A hell of a lot harder than in 2008”….

…. I’ll gently remind you of the financial crisis in 2008. It was one of the worst times this century to be entering employment. I mean, some even refer to it as the Great Recession…. But yes, it’s definitely harder now 🤔

Funny how you forgot that!

When I mentioned those who may face a life changing event such as illness, disability etc at 10.18 this morning your answer was that "most of those events are insurable" and in another comment regarding the "lazy and feckless" there was also no caveat that you did not include the sick and disabled in your 'views.' Isn't it telling how, like so so many posters who start off with their sweeping judgement of benefit claimants, as the thread goes on and others are questioning that, you're suddenly backpeddalling and even throwing in a few nuggets about how you feel sorry for the disabled.....🤔 Maybe giving more thought to what you come into the discussion with initially might save you that frankly transparent embarrassment further down the thread. Your true colours had already been pinned to the mast, however.

Some people are never going to be able to do much beyond the low paid and NMW jobs you seem to look down on.
Are they meant to rely foodbanks forever? Or should they get some top ups from UC so they can have a life with dignity?

I was in a NMW job, and I was not entitled to benefits because once upon a time, a single person in a NMW job could actually afford to live.
Years ago, a man in a low paid job could have a wife at home with kids and still afford to live.

Now it is not possible... because of bills (my quarterly bill was the same as what my monthly bill is now), food was cheaper, rent was a ton cheaper.
Housing costs have shot up. A lot of UC for full time workers is towards housing.

Yet many on here just blame the low paid workers for having low pay.... they are low paid because living costs have gone up.

So go on, explain your sense of entitlement.

I would encourage you to get your sense of smell checked out. Never been a member of any political party my entire life. I am however considered enough to have formed a strong sense of personal responsibility rather than a learned helplessness. I suspect that’s what you’re actually smelling

I have no sense of entitlement.
You could be a benefit claimant in the blink of a eye... it could take a stroke, or a car accident.

Just from previous experience; you'll find that Xenobitch is not going to be a pushover with a one liner like that.

PP thinks they are immune to needing the safety net.
Always the way.

Xenobitch is a regular contributor and as far as I can see doesn’t have a sense of ‘entitlement’ any more than the OP does. That strong sense of personal responsibility you’re so proud of seems to dismiss out of hand the circumstances and vulnerabilities of others. That’s what I’m smelling.

Getting a degree used to be a big deal. It’s not such a big deal anymore since successive governments have (incorrectly in my view) pushed agendas that resulted in more people than ever going to uni to get a degree. And before you say “but not everyone can afford a degree”, they can. I did with 0 parental support (one had passed away already, one was on low income). There’s loans and / or the ability to pickup bar work etc (this is what I did).

note, I also said:

1. “or equivalent” which can be time served experience, or
2. apprentice route… noting: the barriers to entry of apprenticeships are relatively low

So yes, the entry requirements aren’t overly burdensome. Unless you’ve other direct experience of the sector I work in to suggest otherwise….?

All the money in the world could not make me get a degree. I tried... 3 times. I am not academic at all.