Inheritance and UC

pinemartine
pinemartine Online Community Member Posts: 60 Contributor
in Benefits and income

Hi, I lost my partner last year. He was married to someone else before and the letters about his private pension have been delivered to his ex wife’s address as he didn’t report them his new address.
His ex wife recently passed away and I was given some of the letters about the pension which she kept by her family a few days ago. I had no idea about the pension until then.

I guess I am entitled to inheritance of the pension as he didn’t make a will and his ex wife who could be the nominee of his pension passed away.

I have started having physical and mental health problems since his diagnosis and I am living on UC and PIP at the moment.

I don’t know if I inherit the pension, I would have over 16,000 pounds or not. (If I have to pay inheritance tax, it won’t be over 16,000). But if I get more than 16,000, I believe my UC would stop. I am already struggling to pay my rent as my rent is more than housing support and inheritance money wouldn’t even last 10 months.
If my UC stops because of the inheritance, do I have to go through the assessment from the beginning when my saving becomes under 16,000 which could be only a few month later? I cannot bear the thought of it.
I wonder if I can receive the pension monthly instead of having all at once which gives me more stable income. I understand the monthly payment will be counted as income and affected to my UC.
I guess it’s a very unusual situation but if anyone inherited private pension can advise me, it would be really helpful.

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    Were you married? If you were and you do receive the money as a lump sum, if it's less than £16,000 then your UC will not stop. For every £250 or part thereof over £6.000 there's a £4.35/month deduction in your UC.

    Your UC will only stop if your savings/capital is more than £16,000. Once it's drops below £16,000 you can reclaim UC.

    If you take a weekly/monthly amount (no idea if that's possible here) then this will be treated as income and reduce your UC £1 for £1.

    If you're claiming council tax reduction some local authorities have a maximum savings limit of £6,000 before entitlement ends.

  • pinemartine
    pinemartine Online Community Member Posts: 60 Contributor

    @woodbine and @poppy123456

    Thank you for your detailed comments.
    He doesn’t have a child so I guess I am entitled to inherit his pension as his wife as poppy123456 explained.

    Now I understood how UC would be calculated according to the savings but if my UC stops, do I lose my current award and do I have to go through an assessment (work capability assessment etc.) again when my saving becomes under 16k? Or will the payment get paused while I am having saving over 16k and can I get payment again when the saving becomes below 16k without work capability assessment?
    I am already feeling very anxious by the thought of having another assessment…

    P.S. I checked website and eligibility for council tax support of my council is saving below 16k.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    If your UC ends due to capital of more than £16,000 when you reclaim in the future you will need to go through another WCA unfortunately.

  • pinemartine
    pinemartine Online Community Member Posts: 60 Contributor

    @poppy123456 thank you for your answer to my question.

    I am shaking by just thinking about the assessment…

    If I get this lamp of money, I would like to give some to his mother and sisters as I know they are struggling financially.
    My husband couldn’t make a will as he had brain tumors and got very confused but if he could I am very sure he would have left some money to them.

    But maybe DWP would see this as I am trying to reduce my saving to keep my UC…

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    You are correct in your thoughts, giving away your money will be treated as deprivation of capital and you will still be treated as having that money.

    If you have any debts you can pay those off and it won’t affect your UC.

    As you don’t know if you’ll receive anything yet you will need to wait to see what happens.

  • pinemartine
    pinemartine Online Community Member Posts: 60 Contributor

    @poppy123456 Thank you for your comment again. I really appreciate your help.

    I payed off my shortfall of the rent when I had discretionary housing payments so I don’t have any debt at the moment…

    I haven’t done any paperwork to claim this yet as I get still very emotional by anything related to his death and I cannot face to going through all the process (sending death certificates etc.) I suppose I am suffering from some kind of ptsd as I get flash back when I see something reminds me of his last few months and I gets panic attacks.

    I understand I need to inform them his death but am not well enough to complete the process of claiming this inheritance yet…especially knowing I know my financial stability will be affected by it

  • Jimm_Alumni
    Jimm_Alumni Scope alumni Posts: 5,717 Championing

    Hi @pinemartine, I see you've already received some answers about the money, but I noticed you said you were having some mental health issues. If it's about bereavement the NHS has a bereavement service: https://www.nhs.uk/mental-health/feelings-symptoms-behaviours/feelings-and-symptoms/grief-bereavement-loss/

    Mind is also an excellent source of information and support for mental health: https://www.mind.org.uk/information-support/

    I hope you're doing okay today, and please do keep in touch!

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