Inheritance, buying a house and the savings threshold

zoejane76
zoejane76 Online Community Member Posts: 3 Listener
edited March 24 in Benefits and income

Hi , first time posting but after a little advice please. I have been lucky enough to have inherited a large sum of money . Currently my son and myself live with my father but I am looking to use all the inheritance to purchase a property for us both outright. This would mean my savings would go back under the Ā£16k threshold. Would this been seen as acceptable to use the money to purchase a property or not please ? Any advice Iā€™d be very grateful of šŸ™‚

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  • zoejane76
    zoejane76 Online Community Member Posts: 3 Listener

    just to add my son is in receipt of PIP and I also receive carers allowance and UC as my son is autistic

  • Kimi87
    Kimi87 Online Community Member Posts: 8,689 Championing

    Buying a home won't be considered Deprevation of Capital, but with your circumstances I suspect as soon as the money hits your account this will need to be declared to UC & end your claim.

    You would then need to start a new UC claim once the money has been paid out for the house.

    It might be possible for the money not to go into your account, such as it staying with the executor and going directly to pay for the new property.

    Your son's PIP & your Carers Allowance wouldn't be impacted.

  • zoejane76
    zoejane76 Online Community Member Posts: 3 Listener

    Kimi87 thanks so much . I am the only executor so unfortunately the money will have to go into my account but I will let UC know as soon as it does. I really appreciate your help šŸ™‚

  • Kimi87
    Kimi87 Online Community Member Posts: 8,689 Championing
    edited March 24

    Legally the money belongs to the estate of the deceased until everything is settled and the beneficiary(ies) receive their inheritance.

    You'd then tell UC when distribution is made and you receive your inheritance.

    I suspect your situation might be different but below are my current circumstances.

    I'm administering my mother's estate on a sole basis with myself & sibling as beneficiaries.

    I've opened a new account (in my name) to administer her estate with so as not to mix finances, keeping records of money in & out of the estate (spreadsheet) plus all receipts.

    I will declare to UC when distribution is made.

    Because legally the inheritance is mine, but the estate funds are not.

    Some prefer to fully inform UC as soon as they become executor/administrator, others follow my position.

    You could always try speaking to a trained benefits advisor locally.

    https://advicefinder.turn2us.org.uk/

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