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.

It's fine, it's not your fault. People Will always have their opinions on benefits and that will always be the case, whether they're uninformed, angry or whatever.

I only came here to ask for some help or advice and I have found it, albeit with some awful people crawling out the woodwork. I'm very very grateful for you and your support ❤️

It's okay lovely, nothing like a post about someone coming into some unsuspecting money to bring out the worst in people.

My nan was so humble, sounds a lot like yours too. "If you've got nothing nice to say, don't say anything at all" "if they don't matter to you, pay them no mind love" "things will be better tomorrow, chin up love" and some of what she put in her letter I received before I started this post:

"work hard, look after eachother and know that a grandmother's love will never fade. I've decided to give this money to you, not because it's the most important thing to me in life, far from it. It's because I hope it will bring you some security, joy, happiness or even to follow a dream. Treasure eachother and make as many memories as possible, as life is fleeting"

A wise woman. With wise words, who would laugh at many of the people spitting their venom on this thread.

What did I say that was offensive? I think you’re reacting emotionally rather than objectively. Unless of course you really are offended by the concept of someone being wealthy which might be point proven.

Maybe open a private SIPP? You still get the tax relief in essence—the 20% is added straight into your investment each time you deposit.

You really need to learn when to back off. I think OP may have been right about you possibly being bored, as even at 4am you still can't leave it be. You offended her by making a completely uneccesary comment that mentioned her recently lost grandmother that you quite simply didn't need to make, and it was made because you obviously thought it sounded 'clever' to try and illustrate one of your 'points.'
It gives you no credibility for intelligent argument, it just makes you look crass.

I think bringing someone's dead relative into an argument when you're getting criticised is an indication that you're not acting objectively yourself. Especially when your point was wrong - OP wouldn't be receiving less than she thought due to inheritance tax, because that's levied on the estate as a whole, not individual bequests. If she's at the point of receiving a cheque, that's all been dealt with already, so it's irrelevant, and you bringing it up was just being gratuitously unpleasant.

I missed this. Why would it be less ? Inheritance tax is levied on the total estate and the executor would deal with that before distributing the remainder.

At this point, the PP is being goady and is after an argument. Really sad.

Agree.It’s a shame the OP has come in for such shit throughout the thread- posters treating her as though she’s a fraudster when all she really wants is advice to be able to hang on to as much of this windfall as she can. There are ways to do that which are perfectly legal and above board. Sometimes the indignation from posters who clearly have no idea how the benefit system works is laughable.

OP has shown a lot of grace amid the vitriol.

Totally agree 👍 I'm not usually a user of the advanced search but made an exception and the poster who gave OP the hardest time has form for the goadiness. Sad really.

12,000 is nowhere near the IHT allowance!

Where is the grace in sneering at people with “big scary jobs” or calling them “martyrs” or “Tory’s” and stating “no one forces you to work those hours”. You think that is grace?

They will stop your UC as they will see it as an income….. they stopped my UC one month because of a tax rebate I got was too much, had no control on receiving it but they still stopped my UC….. I received a payment from the Welsh government as a thank you for working through covid, they saw that as an income and deducted it even though so couldn’t say no to it……. They aren’t reasonable people and you would have money to support yourself without needing them so they will stop your UC no matter what you’re going to use it for.

A cash gift is not classed as income, and it is below the cut off of £16k.
Her UC would be reduced, but not stopped.

Yeah and its usually the same posters posting that 100k is a pittance and not enough to live on when its their own finances.

That was the OP at the end of her tether, fighting back and snapping after being constantly attacked and goaded and got at (by a small handful of posters.) For the most part, she has been nothing but tolerant and gracious on this thread. She has been a bit snippy and snappy now and again, but is it surprising, really...?! With the crap that has been thrown at her on this thread (from a few posters.) Fortunately, the majority of people have been helpful, kind, and nice, and have given constructive criticism and/or good advice!

Have you thought of contacting Bob Geldof See if hes willing to do Live Home Owners Aid

Completely incorrect. Your tax rebate would have been treated differently as it is classed as income under the rules, not capital/savings. The inheritance OP received comes under the capital and savings regulations (UCR 2013 and amendments.)

I have absolutely no idea what Bob Geldof or “Home Owners Aid” has to do with my post. 😂 My point was simply that means-tested benefits are means-tested. If you suddenly have £12k, expecting to keep all of it while taxpayers continue meeting your living costs seems an odd expectation.

OP said in her first post that she knows money will be deducted every month.

Why are some people twisting everything she says?

Those are the regulations. I am a tax paying welfare benefits specialist. I just tend not to frame everything as if I am being personally robbed every payday to make other people feel small.

Because there are those who like to categorise all claimants as if they are doing a one to one personal Fagin job on them every month.

For those who continue to dislike, misinterpret or want to blame the claimants for the regulations:

They don’t care and it will bite OP in the butt, time shall tell when they speak to them.