Inheritance

[phleb]

I’ve inherited around 50/60 thousand. I live in a council house and work part time, I’m also on universal credit. What can I do to make the most of this money? Will I lose my council house and universal credit? If I buy a run down house for business purposes would they take my council house off me? I’m hoping to purchase my council house in 3 years time. I’ve got an Iva so can’t get a mortgage to top up my inheritance and buy a decent house.

Any advice would be welcome. Any ideas to buy a business or do-er upper house. Thanks

[Redhelen72]

Yes you are likely to lose your universal credit as you would expect to with a substantial uplift in your income.
You are very unlikely to lose your council house

[Hopkirk]

I would keep it and use it to buy and improve the council house when you are able.
Do your creditors under the IVA have any call on your new savings,?

[barry1010]

Re your universal credit:
"f you or your partner have £6,000 or less in savings, this won’t affect your claim for these benefits.

If you and/or your partner have £16,000 or more in savings, you won’t be entitled to Universal Credit.

If you and/or your partner have any savings or capital of between £6,000 and £16,000, the first £6,000 is ignored. The rest is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250."

[barry1010]

Forgot the link https://www.moneyhelper.org.uk/en/benefits/problems-with-benefits/how-do-savings-and-lump-sum-pay-outs-affect-benefits#:~:text=the%20savings%20limits%3F-,Universal%20Credit,be%20entitled%20to%20Universal%20Credit.

[barry1010]

Re your IVA:
"You will be expected to prioritise paying back the debts in your IVA, so any inheritance money you receive should go towards paying off this arrangement.

If your inheritance can cover the entirety of your IVA debts, you will be expected to pay this off in full, along with any IVA fees. "

https://www.payplan.com/blog/can-an-iva-take-my-inheritance/#:~:text=You%20will%20be%20expected%20to%20prioritise%20paying%20back%20the%20debts,along%20with%20any%20IVA%20fees.

[barry1010]

Re buying a second property, it depends on your council, each have their own rules. What council do you come under?

[ToraToraTora]

buy the house you are in, it'll be at a big discount, then you'll have no money and still be able to claim benefits. If you keep the dosh as it is then you'll lose the benefits.

[Paigntonian]

No reason why you should lose your house but you can't get Universal Credit if you have what are deemed savings of more than £13,000.

[Ellipsis]

The fact that you have an IVA complicates everything and takes priority. You need to check your IVA to see if it contains a windfall clause. See ...

https://beatmydebt.com/news-articles/what-happens-if-i-get-an-inheritance-while-in-an-iva

[barry1010]

As you are in receipt of universal credit could you afford to run two houses if you could find a doer upper cheap enough to buy outright? Even empty houses have running costs

[phleb]

Thank you. I will be paying my iva off first. X

[barry1010]

Glad to hear it, phleb. It will give you a fresh start and will be a weight off your shoulders.

[Ellipsis]

Yep, that's great that you can afford to pay off the IVA. Whatever that leaves you with, that's the amount you've effectively inherited with respect to the other advice offered above.