Benefits and inheritance

julian20
julian20 Online Community Member Posts: 10 Listener
in Universal Credit (UC)

My wife and I claim UC with fall disability premiums, CA & PIP enhanced. We are going to receive a inheritance of around 30k within the next 12 months, I know we will no longer be allowed to claim UC but once debits are paid and money gifted there will be around 20k left so is it a good idea to sign off UC for a few months and just live of money foe a period, and once saving are below 16k reapply for UC. We will have some deducted because of saving , but ca n people advise if this is best way .to precede, to avoid any DOC which may arise. All advise very much appreciated.

Thanks Julian & Fiona

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  • julian20
    julian20 Online Community Member Posts: 10 Listener
  • Holly_Scope
    Holly_Scope Posts: 3,927 Scope Online Community Coordinator
    edited August 31

    Hi @julian20 and welcome to the community. 😊 You'll likely not be able to claim UC whilst your savings are over £16k as you've mentioned. Then once you fall between £6k and £16k is when the deduction comes in to play which is typically £4.35 for every £250. Under £6k there are no deductions.

  • Zipz
    Zipz Online Community Member Posts: 3,470 Championing
    https://forum.scope.org.uk/discussion/138120/benefits-and-inheritance

    When you say "debts paid and money gifted", do you means the debts of the estate and legacies to beneficiaries" or paying off your own debts and gifting money?

    Paying off debts is one thing but I think giving cash gifts to, for example, your children would be regarded as deprivation of capital by the DWP.

  • julian20
    julian20 Online Community Member Posts: 10 Listener

    Hi, all debits would be mine, before my mum passed she asked me to give money to her granddaughter

  • julian20
    julian20 Online Community Member Posts: 10 Listener

    Increasing my debt to give to my children is still do?

  • Zipz
    Zipz Online Community Member Posts: 3,470 Championing
    https://forum.scope.org.uk/discussion/comment/1063994#Comment_1063994

    If you gift your Mum's granddaughter a substantial sum of money from your legacy it would be regarded as depriving yourself of capital.

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,996 Championing

    This is an interesting situation, and one that I still haven't seen anyone try so far.

    If you tell UC after you've got £16k then your UC account will be closed permanently and cannot be reopened.

    However, I believe there may be a bit of a workaround here. If you choose to close your own UC account (before savings go over £16k) then you can make a rapid reclaim within 6 months, without having to make a brand new application for UC.

    I was heading for this exact situation myself, but due to a recent change in circumstances and a large outlay, my savings are now a long way from £16k again.

    Also I agree with the above. Any gifting of money will be classed as DOC. I know it's too late now but your Mum needed to include her granddaughter in her will. That would have been the only way to avoid this being DOC for you now.

  • julian20
    julian20 Online Community Member Posts: 10 Listener

    Thank you Overly anxiously

    If I close UC, gift £££ then claim once below 16k to would this avoid DOC? Also while UC is closed buy much needed items we need, costing about 6k?

    Julian

  • julian20
    julian20 Online Community Member Posts: 10 Listener
  • julian20
    julian20 Online Community Member Posts: 10 Listener
  • Kimi87
    Kimi87 Online Community Member Posts: 6,916 Championing

    Gifting money to your children is likely to be seen as deprevation of capital, because nothing was in the will about them receiving money.

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,996 Championing
    edited September 2
    https://forum.scope.org.uk/discussion/comment/1064191#Comment_1064191

    No, that would not avoid DOC. It is still DOC to spend money while a claim is temporarily closed, or immediately before opening a new claim. UC will check your recent statements when you reopen the claim again.

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