UC and inheritance

cpnan

Hi, I sadly lost my Mum and my Step Dad in the summer, so at some point I will inherit a share of their estate and I will end my UC claim.

My only income will be ESA (the non means tested one) and standard PIP so I will need to use the inheritance for general living expenses.

I’m a worrier, so I’m concerned that if the time were to come when my savings dipped below £16000 and I were to claim UC again, would they want to look at what I’d used the money on?
I could really benefit from a new car and would love to have a fence put up round my garden, possibly new flooring. I wouldn’t go mad because I’m not someone who spends money for the sake of it. What I’d really like to do is gift a small percentage of it to my children however I believe that isn’t allowed?

I wasn’t sure if it would be expected to ‘last’ me a certain amount of time?

Any advice/info gratefully received.

poppy123456

Sorry for your loss. It will depend on how long it is between your UC ending and you reclaiming it once capital goes below £16,000.

It will be fine to replace items at home, as well as a new fence and any other items you need. Same applies for a car, providing you don't buy the most expensive things of course. If they do ask for evidence, they will ask for bank statements.

Giving away your money is allowance because it's your money. What you can't do is give money away and then reclaim UC because you'll still be treated as having the money if you do that.

cpnan

Thank you so much Poppy.

I expect it would be several years until I would possibly need to reapply, if at all. There may come a time when I am able to hold down a part time job with any luck!

Do you think that if I were to gift a small amount to my 2 children straight away (say £5000 each) that it could be held against me years down the line if I needed to reapply?

poppy123456

You're welcome. If it's several years that you may reapply then I would say it's unlikely going to go against you. Of course I'm not a decision maker so I can't tell you for certain if it definitely won't.