Advice on inheritance when claiming Universal Credit

Crystal66

Hello everyone

I'm looking for a bit of advice. My Dad is getting his Will changed and has asked me what is best for him to do with my share of his house when he passes away. I am on universal credit and not able to work due to psychiatric illnesses. I was asking for advice in another discussion group and am a bit confused about what I have found out just today. I currently live on my own in a housing association flat and when Dad passes away he wants me to use my inheritance to buy a flat of my own. I have been told that as soon as i inherit any money that takes my saving over £16000 my claim to UC is closed. I had previously thought that i would get 6 months to sell Dads house and still receive all my Universal Credit and then after its sold I would have another 6 months to find a house to buy with my inheritance to live in(still during this time my benefits not being affected). I have been told by someone today that i only get this 12month period in total if i am actually living with my Dad. But if I am living independently then my money stops from the minute i inherit and i then have to start using the inheritence to pay for my rent and daily living until i find a flat to buy. Is this actually the case? Am i classed as inheriting the property before it is sold? Or is that just after it is sold and i have the cash. I assume its from the day of death of Dad. Sometimes i have heard proprties go through something called probate which means i dont have access to any money either. I had thought that the 6 month period would be there to allow for this possibility and that it also may take several months or more to sell. Will my claim close before the property is sold as one third would belong to me and then I'm left having to find money to pay rent on my flat until the inheritance money is available to buy one of my own?

II hope someone can help with this. I was told discretionary trusts no longer protect inheritance money.

TThanks

Lauren29

It is possible for the value of a property to be ignored for 6 months if this is used to buy another property but this only applies if you have lived in the property. As you do not live in your Dad’s property this won’t apply to you. If you inherit a property then the value can be disregarded for up to 6 months and sometimes longer if you are taking reasonable steps to try to dispose of the property. You may be asked to provide evidence of this such as an estate agent’s listing. Once you receive the money from the property and report this then your Universal Claim will be closed. If you use the money to buy a property then this shouldn’t be treated as deprivation of capital as it would be reasonable to purchase a home. You could then reapply for UC if your capital falls below £16,000.

Crystal66

If my share of inheritance was left to another family member and then they bought a property and gave it to me which i then moved into would that be allowed? As the money wouldnt actually belong to me and i could just declare the property as a gift and change of address and stop getting the housing benefit part of my allowance paid. Or is that deprivation of capital?