Will my Inheritance Affect my Benefits? – Ask an Expert | Howells Solicitors
Make a payment

Will my Inheritance Affect my Benefits? – Ask an Expert

Howells Solicitors

12 Apr, 2021

The amount of savings your household has will affect the money you receive from means tested benefits. This means a lump sum of money, for example from an inheritance, can affect the amount of means tested benefits that you are entitled to.

Some of the means tested benefits that are affected by both income and savings include:

  • Universal Credit
  • Pension Credit
  • Tax Credits (Child Tax Credit and Working Tax Credit)
  • Council Tax Support
  • Income-based Jobseeker’s Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Housing Benefit

Savings are classed as:

  • Cash
  • Money in any bank or building society account
  • National Savings and Investments accounts such as Premium Bonds or Income Bonds
  • Stocks, bonds and shares.
  • Property that is not your main home
  • Valuable items

Universal Credit

If you’re claiming Universal Credit, you can have  savings of up to £6,000 before your means tested benefits are affected. However, if your savings are over £16,000 you would not be able to claim means tested benefit. There are some exemptions and disregards that may apply to the savings and so it is always best to seek expert advice. Remember, savings are considered for both you and your partner jointly.

Pension Credit

If you claim pension credit the rules are different and  your household savings can be up to £10,000 before your Pension Credit  is affected. You can use the Pension Credit Calculator to check if you can claim.

What you can do

If you are making a Will and considering leaving an inheritance to someone who is in receipt of benefits, it would be a good idea to seek legal advice on how you can make provision for your loved ones without affecting their entitlements.

If you have received an inheritance, or any sort of lump sum of money and you would like legal advice on any benefits related issues, our Benefits and Credits expert can help.

To discuss your specific situation with our Benefits & Credits team you can call our enquiry team and make an appointment. We offer fixed fees on our advice and flexible appointments to suit your needs. If you can’t make it into the office don’t worry we offer telephone appointments.

You can email Howells to make an appointment at enquiries@howellsllp.com, visit our website or call us:

Sheffield0114 249 66 66

Barnsley: 0122 680 51 90

Rotherham0170 936 40 00

What is a Deathbed Gift?

Why do I need to pay a Solicitor to make a Will? – Ask an Expert