Inheritance and benefits?

[bossychloe]

Since her accident my has sister received income support benefit. She is soon due to receive an inheritance of approximately 20k. Does she have to declare this to the benefit office and will it effect her payments?

[factor-fiction]

I think it's likely that they will expect her to tell them if it's a means tested benefit. I assume she also gets housing benefit so that may be affected too.
She should have lots of papers telling her what changes she needs to inform them of.
Isn't the best thing to simply let the benefit office know? If they don't need/want to know then there's no harm done.

[hc4361]

You cannot get income support if you have �16000 or more. She is obliged to declare it.

[sara3]

she does need to tell them as soon as she receives it, and it will affect her benefits. if she doesn't tell them, carries on claiming and they find out, it's a criminal offence.

[ummmm]

Yes.

You can have 6k without having to declare. Anything over 16k you won't be entitled to anything.

[sara3]

Housing Benefit has been set at �16k for years. Income Support fell into line some time ago, but will reduce payments when you have �6k upwards.

[ummmm]

I think they reduce benefits for every �250 you have over 6k.

[marval]

Read this for the facts.

http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/BenefitsTaxCreditsAndOtherSupport/BenefitFra ud/DG_10035820

[bossychloe]

Thank you to everyone for their answers.

Do you think she should contact the benefit office now or wait until she actually receives her share of the inheritance (she will not get anything until her mother-in-laws house sells)
Thanks again.

[mrs_overall]

She doesn't need to contact them until she actually receives the money.
If she spends it, she can then reapply for benefits.

[anniebird]

She must be very careful about spending this money as the Benefits office will expect her to spend it at the rate at which she currently receives benefit. This means that if she currently receives �10,000 per year they will expect the money to last her 2 years before they will reinstate her benefits. She cannot just spend the money in a short time and start getting benefits again. I know - I have seen it happen. It can cause many problems and genuine hardship.

[liz69]

hi im all benefits including dla, my dad passed and left 20k to me but i dont wont it as i dont wont to lose my benefits does anyone know if i can sign it all mover to my daughter??