What are the rules on inheritance money over 100k and claiming UC?

bobjones1
bobjones1 Online Community Member Posts: 1 Listener
edited February 2023 in Universal Credit (UC)
Can anybody advise please we are a legacy benefit couple claiming dla partner disabled as well jsa what's the rules on inheritance money over 100k is it possible to put 99% of the money in a pension (not paid in for 20 years due to financial issues) and still claim universal credit I guess due to change of situation thanks 

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    You mention JSA and then UC these are both different benefits, either way both of those are means tested and any savings of more than £16,000 will end entitlement to all means tested benefits. This includes council tax reduction. However, all Local Authorities have their own rules for CTR and some have a maximum savings limit of £6,000.

    As you're not working then no you can't put all that money into a pension. You can contribute to a pension even if you don’t pay tax, or have no earnings at all – this includes children. The annual pension contribution limit for non-earners is £3,600 gross - a payment of £2,880 to which the tax man adds £720.

    The DLA isn't means tested and neither is carers allowance if either of you are claiming that.

    You will need to report the changes when the money goes into your bank. You must also report the changes to your local Authority.
    If it's Universal Credit you're claiming then if you have any debt you can pay this off without it affecting your UC.



  • Cher_Alumni
    Cher_Alumni Scope alumni Posts: 5,714 Championing
    Hello @bobjones1 and a warm welcome to our online community, how are you today?

    I can see Poppy has given you an informative reply, has this helped you better understand your position?

    Just to let you know, I've renamed your thread and moved it to our Universal Credit (UC) category to help make it more visible for replies :)

    Best wishes and take care.

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