Advice needed

julianpucci20
julianpucci20 Online Community Member Posts: 3 Listener
in PIP, DLA, ADP and AA

I would love some advice regarding benefit & inheritance, i could soon receive a smal amount which could send me over the £16k cutoff point, any advise?

Im severly disabled receiving a joint UC claim y maximum disability paymens, PIP enhanced rate with the mobility rate used on a WAV. My partner/carer gets CA.

Any advise on how to proceed?

Comments

  • Kimi87
    Kimi87 Online Community Member Posts: 6,548 Championing

    All UC will end once your capital goes over £16k.

    You should research deprevation of capital.

    Repayment of formal debt is generally not considered DoC.

    If you paid off debt within the same Assessment Period as the money was received, which then takes you below 16k, that should be fine to retain some UC entitlement.

    For every £250 or part thereof over £6k, a £4.35 deduction is made from your UC award.

    PIP and CA are not impacted.

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,910 Championing

    Hi,

    The best option here is for your relative to change their will so that the money goes into a trust instead of your bank account.

    Unfortunately, if your total accessible savings go over £16k at any point, all entitlement to UC ends, and you cannot reopen the claim in future either. Have to start a brand new claim once savings drop below £16k again.

    You would continue to get PIP as normal, and your Motability car would not be affected either, as PIP is not means tested.

  • Kimi87
    Kimi87 Online Community Member Posts: 6,548 Championing

    If the person has died it would be too late to change the inheritance in any way.

  • julianpucci20
    julianpucci20 Online Community Member Posts: 3 Listener

    Thank you for all your advice, I like millions need a better TV etc, if I can acquire debt now to buy it items can i use inheritance to clear all debt?

  • julianpucci20
    julianpucci20 Online Community Member Posts: 3 Listener

    I realise my previous post might be seen as doc, please advise on what a person càn legitimately use any money for.

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,910 Championing
    https://forum.scope.org.uk/discussion/comment/1060678#Comment_1060678

    If your total bank account savings go over £16k it will be too late to keep the UC anyway.

    There aren't any specific rules on what the money can be used for. It's more about the intent behind it. So basically they'd expect a UC claimant to spend an inheritance the same way as a person who doesn't claim benefits. What they wouldn't expect is buying a load of top end luxury items as soon as you get it, for example.

  • Zipz
    Zipz Online Community Member Posts: 2,860 Championing
    https://forum.scope.org.uk/discussion/comment/1060378#Comment_1060378

    Yes. If you owe £2000 and you inherit £17000 your capital equals £15000.

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