UC and inheritance timeline

judie

Morning, does anyone here have any pointers on UC and inheritance rules on timing, please?

We have just got grant of probate and have £112,000 in the Executor account. There is also a property currently on the market, the proceeds of which will be the main part of the estate.

There are 3 of us, all daughters, executors and beneficiaries. Do we wait for the sale of the house to divide up the inheritance or do an interim payment before hand? Bearing in mind that at this point we are still settling debts with creditors and there will be ongoing bills and expenses until the property is sold.

I am the only one of the 3 on benefits so timing is more crucial in my circumstances.

Kimi87

From what you've written the estate isn't yet settled, so there is no reason why you can't wait until it is before distribution of the money.

Interim payments are not mandatory.

That assumes all executors agree on such a course of action.

judie

Thanks Kimi87. The 3 of us don't have an agreed course of action yet, it is all very new and we are feeling our way. I am just wary of getting into trouble with UC. Appreciate your input.

Kimi87

Whether you receive inheritance money from an interim payment (taking your capital over £6k) or final distribution, it has to be declared to UC when you receive it.

There is no obligation for the estate to make interim payments.

You won't get into any trouble from UC if interim payment is decided against by the executors and you receive the money instead after the estate is settled.