Will me getting an inheritance harm mum's housing benefit?

nickyp

Hello all.

I live with my mum who is disabled and gets PIP (not full, but a portion of both parts, daily living and mobility - it was a long time ago when it started), housing benefit, council tax reduction and pension credit. I do things around the house for her, help her get dressed, cook, etc.

I work full time and am her carer, although as I earn £30k and work full time, I don't get carer's allowance, not that I've ever applied as it's not been something I've needed.

ANYWAY: A friend of mine died last year and left me a portion of his estate which works out at around £38k in cash when his property is sold (based on the summary of the estate accounts - it could differ when it arrives, and that's the amount I'm expecting after inheritance tax is paid on the estate).

I'm wondering if this is going to cause any problems with mum's housing benefit, etc. when the inheritance arrives.

I was planning on spending the entire £38k in a very boring way as soon as it arrives by paying off all credit cards, loans and suchlike for both me and mum. I've already created a spreadsheet and it seems to balance out, even including paying the finance off on mum's car in one lump sum. (Then snipping up all credit cards, closing the accounts and never having multiple cards and high limits ever again!) But I'm just concerned if I suddenly get £38k, even if it is disposed of right away, that this could cause problems and I'd like to be prepared.

If the worst comes to the worst, as all debts will have been paid off I could take over paying rent on the council house and suchlike as I wouldn't owe anyone anything so would be in a better financial situation - but I just want to work out if I need to expect anything to go wrong as I'd rather know at the start and sort it then rather than find out after some audit by the council/DWP that she/I/we owe years worth of council tax & Housing Benefit because I should have done something

nickyp

Thank you for your reply. I just thought that as someone that lives in the property any money I have coming in, or savings, windfalls or whatever, could push mum over the £10k limit for housing benefit? I just assumed that  if I had plenty of money stashed away that the government would expect me to contribute further. I'm not a millionaire or anything.

Thank you for your response and clarification.

Re: The estate, it consisted of more than one property and a lot of cash in the bank shared amongst a number of people.

poppy123456

Household only applies to a partner you live with. It doesn't include other people you live with. 

For the avoidance of doubt, for those claiming Pension Credit there's no maximum limit for capital anyway. There's a £1/week deduction in PC for every £500 or part thereof over £10,000. (which doesn't apply here anyway because it's not her money)

nickyp

Thank you both for putting my mind at rest. You’re both amazing.