inheriting money

[bestiebabe]

i am claimimg income support and am due to inherit some money. i owe my children quite a lot of money. if i pay them back out of this inheritence will this cause problems with my benefits. thank you

[themas]

Almost certainly you would be treated as having deprived yourself of the money & your menas tested benefits (not only income support but also housing benefit & council tax benefit if you have them) would be reduced or stopped.

The only exception to this is if it can be clearly demonstrated that the debt has to be paid now, rather than at some time in the future. I guess that you do not have any formal written agreements about these loans from your children, and if so you would not be able to demonstrate this.

If you are over 60 the rules are a bit different but, if that was the case, you would probably be on pension credit and not income support.

What I've said assumes the inheritance would take your total capital above the �8000 minimum. If it would not, then there should be no problem.

It would be wise to notify DWP & the local authority (if you have HB/CTB) when you get the inheritance. They can then calculate any effect on your benefits.

[bestiebabe]

Thanks i will be 60 in 10 weeks. do you know what difference pension credit makes. sorry to be a pain

[themas]

Once you are 60, if you are single you are guaranteed an income of about �124 per week. This can be made up of your normal state pension, any occupational pension and any other income. If the amount you get from all these sources is less than the �124, then you can get Pension Credit to top it up to that amount. If you have a partner the figure is higher, & all the income of both of you is taken into account.

So far as savings are concerned, there is no upper limit but you are assumed to get income of �1 per week from each �500 of savings in excess of �6000. If you use savings to pay off debts (but they must be genuine ones) this is not treated as deprivation of capital in the same way as it could be if you are under 60.

The above is an outline. It can get a bit complex. It would be a good idea for you to go to the local CAB or other welfare benefits advice centre to go over your circumstances in some detail. Alternatively, ask the DWP how arrangements are made for you to stop income support and claim pension credit.

[bestiebabe]

thank you for the suggestions