What Happens if You Inherit Money While on Benefits in the UK in 2023

1. What Happens if You Inherit Money While on Benefits in the UK in 2023? Inheriting money while on benefits in the UK can affect your eligibility for some benefits, depending on the amount of money you inherit and the specific benefits you are receiving. Here are some general guidelines: Means-tested benefits: If you are receiving means-tested benefits, such as income support, income-based jobseeker’s allowance, or housing benefit, the inheritance you receive may affect your eligibility. Means-tested benefits are based on your income and savings, so if you receive a large inheritance, your savings will increase and you may no longer be eligible for some benefits. However, the rules vary depending on the specific benefit, so it’s important to check with the relevant government department or agency to find out how your benefits may be affected. Non-means-tested benefits: If you are receiving non-means-tested benefits, such as disability living allowance, personal independence payment, or carer’s allowance, your eligibility will not be affected by the inheritance you receive. These benefits are not based on your income or savings, so an inheritance will not change your entitlement. Universal Credit: If you are receiving Universal Credit, the inheritance you receive may affect your eligibility, as Universal Credit is a means-tested benefit. The amount of the inheritance will be taken into account when assessing your entitlement to Universal Credit.

2. It’s important to inform the relevant government department or agency as soon as possible after you receive an inheritance. Failing to report the inheritance could result in an overpayment of benefits, which may need to be repaid. It’s also a good idea to seek professional advice, such as from a financial advisor or benefits specialist, to help you understand how the inheritance will affect your benefits and any tax implications that may arise.