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When you have debts and creditors are knocking on your door, itu2019s very tempting to try and make debt management arrangements directly with your creditors. In cases where the debt is quite small, and itu2019s just one creditor, entering into an informal debt arrangement, if the creditor is agreeable, could be worked out for you. It does save money on dealing with the creditor via an insolvency practitioner. However, whilst it can remain simple, there is a risk for both parties as the agreement is not legally binding.<br><br>But if there are multiple creditors and the level of debt is quite extensive, cr
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Call us today! 01603 552028 | mail@leading.uk.com What Happens if You Inherit Money While on Bene?ts in the UK? The rules that surround your bene?ts and inheriting money can be somewhat confusing. If you have recently inherited some money and are wondering whether or not it will a?ect your bene?ts, then you’re in the right place. The truth is that it might, but this all depends on the kind of bene?t you’re claiming. Inherit Money While on Bene?ts in the UK If you Inherit Money While on Bene?ts, then it can a?ect your bene?ts due to the fact most of them are means-tested. This essentially means that once the income or savings has managed to exceed some kind of threshold, the bene?ts could get reduced or even completely cease to exist. There are a number of di?erent means-tested bene?ts that could be a?ected by inheritance and the amount you have in savings, and these include: Employment and Support Allowance Universal Credit Income Support Housing Bene?ts Council Tax Support Working Tax Credit Pension Credit Child Tax Credit
If your savings have increased as a result of receiving an inheritance, then you need to let the Department for Work and Pension (DWP) know. If you fail to notify them you could wind up facing a ?ne and even a potential prison sentence. You also might lose the right to receive bene?ts for three years if you fail to let the DWP know about your change of circumstances. What Actually Counts as Savings? So, what are your savings? Savings is any money you can get hold of easily or ?nancial products that you can sell. This includes: Cash Savings: These are any savings that are contained within your bank account, within your building society account or any account you own that pays some sort of interest. Investments: These are saving products that give you some kind of return on your money. This includes the likes of stocks and shares, ISA’s or a unit trust. Premium Bonds: These are products of national savings or investments that pay out di?erent prizes rather than interest. Rent Payment: This is the amount of money that you pay every month in order to live on somebody else’s property. Mortgage Repayment: This is the amount that you pay each month in order to reduce the amount you have on your mortgage loan, for instance, if you have a ?xed-rate mortgage. Council Tax Payment: This is the amount of money you will pay every year as a means of helping to cover the cost of services provided by your local government. Other Regular Bills: This includes all of the di?erent bills you are liable to pay, such as utility bills, mobile phone contracts and car insurance. When you are making a claim for bene?ts, it will be up to the discretion of the DWP whether or not your savings will be included. What Are Savings Limits? The way that your bene?ts could be a?ected by inheritance is if said inheritance means you exceed the savings limit to claim them. When a bene?t is means-tested, it has a lower capital limit of £6000 and an upper limit of £16,000. This limit is subsequently known as the Savings Credit threshold. Universal Credit: If you or your partner has managed to save £16,000 or more, then you will be unable to claim for universal credit. Housing Bene?t: If you’re over the state pension age, then the £6000 limit doesn’t apply unless you live with someone and claim housing bene?ts with them, and they are under the State Pension age. If you get housing bene?ts then you can save up to £16,000 before your bene?ts are a?ected. Tax Credits: Your tax credits are not going to be a?ected by di?erent savings limits. Pension Credits: The only time your capital is going to have an e?ect on your Pension Credit is if you have over £10,000 in assets. Other Savings That Could A?ect the Bene?ts You Claim On top of those discussed above, there are a few more types of bene?ts that could potentially a?ect the Inherit Money While on Bene?ts. Redundancy Pay: If you ?nd that you are eligible for redundancy pay, then this is going to be included within your bene?ts tally. If you have been ?red from your previous role, then the main bene?t you are going to be able to claim is a new form of Jobseeker’s Allowance, which is completely independent of your savings. Compensation Payouts: You will receive a compensation payout if you have become ill or injured as a result of the job that you did. If you are eligible for such a payout, then the lump sum you end up receiving will be determined by the seriousness of your injury or illness and could a?ect your claim for bene?ts, depending on how much it is. Deprivation of Assets: You aren’t able to simply reduce your assets or any savings you have in a bid to increase the number of bene?ts you have access to. This is an action that the DWP calls “asset deprivation”. When you give away money, transfer ownership of a property you own or acquire items that aren’t included in the means test, these are all considered examples of asset deprivation. What E?ect Does Inheritance Have on Bene?ts? So, does inheritance have any kind of e?ect on the bene?ts you can claim within the UK? In short: yes. When you are claiming bene?ts in the UK and receive some kind of inheritance, the rule of thumb tends to be that if you receive enough inheritance that pushes you over the £16,000 savings limit, you are going to be unable to claim bene?ts or the bene?ts you claim could be reduced. There are, of course some exceptions to this rule. If you would like more advice on how inheritance could a?ect your bene?ts, then you should be sure to speak to some experts. At Leading UK, we will be able to provide you with any and all information on the bene?ts you claim and what your inheritance could do to prevent it. Please do not hesitate to get in touch with any and all questions that you may have. By Viv1 | August 30th, 2022 | Industry News | Comments O? Share This Story, Choose Your Platform! Related Posts
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