Inheritance and UC

pinemartine

Hi, everyone.

I lost my husband and I found out he had private pension untouched (he passed before retirement age).
I reported his death to them and I am waiting for them to contact for what happens next.

I am living on UC due to my health condition and I am wondering what would happen to UC when I receive his pension money.
If I lose UC and have to live on the savings, it would only lasts for 6 months as my rent is really high.

My questions are ;

I need to pay back my mother in law money borrowed for his funeral and my daily living. I wonder if DWP would consider that as debt.

If my saving becomes over 16,000 pounds after I receive the money, does my UC account get closed immediately?
I read somewhere the payment becomes zero but the account would remain for six months. Which is true?

When I use up the savings, do I have to reapply UC and go through assessment again?

Any advice’s appreciated. Thank you in advance.

mix_dage

Hi @pinemartine, sorry for your loss and welcome.

It sounds as if you are expecting more than 16k from husbands pension, have they not given you a figure? Have you talked to the pension company about actually taking a regular amount on a monthly basis with a smaller lump sum under 6k to pay MIL back rather than a larger lump sum? Private pensions are taxable.
regular payments would be counted as income for UC purposes, but would keep your housing cost paid for, if you are now claiming HB
When you say your rent is high and being over the 16 K saving limit it wouldn’t last you 6 months? How much is your rent?

I’m trying to think outside the box, I would suggest contacting pensionwise for pension advice, and https://www.citizensadvice.org.uk

But first speak to husbands pension provider to ascertain your position.
best wishes in this difficult time

pinemartine

Thank you for your advice.

Because he passed before he claimed any pension, I am not sure if I can request monthly payments.
I just sent his death certificate today and they told me they will contact me for the next step. Until then, I wouldn’t know the amount and how I receive the money.

I am considering to buy private pension myself with the money if it is not counted as a saving ( means not affect to UC). I don’t have family in this country and don’t own property. It would be helpful if I can get some additional money on my pension when I am older.

As you suggested, I will make an appointment with pension wise asap. Thank you for the advice.

I know my rent is that high but it’s still cheaper than average in my area. I live in a private rented property. When my husband got ill, we applied for social housing and when I heard council found a flat for us, it was too late (it was 5 days after he died.) so I couldn’t move into the flat. I have been trying to find a cheaper place but no lack so far. I am not even eligible to apply for social housing… (I need to be homeless to do that…).
Council couldn’t help me to find anywhere cheaper even once I was registered as a risk of homelessness… so I am hanging on where I am. My rent is over local housing allowance so after I pay rent, I have little money to pay bills / food…