Author Topic: Do I have to declare a small inheritance?  (Read 9470 times)

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Offline Angeleyes

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Do I have to declare a small inheritance?
« on: September 20, 2012, 04:58:29 AM »
I am currently on an Intermediate Labour Market (ILM) work placement for 3 months. i signed off JSA and received a 4 week roll-on HB payment. I work 25 hours, and it was determined by the welfare to work people that I might get £9.50 per week HB, because I am on £7.60 ph

I have just received £5961 from my Dad's will, and wonder if I need to declare it, as I am technically on no benefits, although HB asked me for 2 months wage slips and bank statement, but I have only sent 1 wage slip, as I am paid on the 22nd.

In addition, I plan to use the money on some dental work, replacing a 12 unit bridge and 2 crowns, as I have had an abscess and the bridge is very weak and keeps falling out. The NHS no longer do this for free, and the dentist suggested I just get dentures, which is totally unacceptable as I am only in my 40's.  So I am using £2550 for the dental work, and the remaining £3250 on a gastric band key-hole surgery as I have a nuerological condition which is controlled by lots of medication and lumbar punctures, but the consultants are now suggesting a shunt in the brain or spine to decrease the build up of pressure and save my eye sight. I have been advised that losing a significant amount of weight would help to put the condition in remission, and anecdotal evidence indicates that it could cure the illness too, as well as improve my blood pressure and colesterol, and sleep. Unfortunately I am unable to do much exercise because of the pain in my joints, and tinitus in my ears which affects my balance and makes me dizzy.
I am explaining all this so that you understand that I am not going to spend the money frivoulsly and addressing my health issue now would help me so much in the long-term.

Will I be penalised in any way for using the money? Can they suspend my payments when I eventually sign back on end of October if they see the funds on my bank statement? I am quite uncertain what to do, and need some advice, as to how to approach this. I plan to have both procedures done before end of October.

Thank you for readng this long post, but I really need assistance

Offline DavidEP

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Re: Do I have to declare a small inheritance?
« Reply #1 on: September 20, 2012, 07:30:35 AM »

I am sorry to hear about your bereavement.

We cannot give legal advice on any aspect in the medical or legal sphere - we are not doctors or lawyers.  However we can do our best to point you in the right direction.

Your best source of information would be a Citizen's Advice Bureau. You would get good advice in a confidential setting.

In general terms we can say that there are two different kinds of benefits - 'means-tested' - like Housing Benefit and Jobseeker's Allowance. And 'non-means-tested' benefits like some types of disability benefits and allowances where the judgement is based on the effect on your life of the medical impairment.

Generally speaking an inheritance can count for a means-tested benefit but does not count for a non-means-tested benefit. If it is a mean-tested benefit then it comes down to how much money you are left by a relative. In your case it is less than £6,000.

The rules for Job Seeker’s Allowance are here and they say that...

If you have savings over £16,000, you can’t usually get income-based Jobseeker’s Allowance. Below this limit, for each £250 of your savings over £6,000, your benefit is reduced by £1 a week.

See Jobseeker’s Guide:

For Housing Benefit – an inheritance may count as capital – but on a sliding scale:

Although the details are here in the section headed ‘Capital’ it would be best to talk to your Citizen’s Advice Bureau for a formal answer:

You will have to scroll down and search out the rules in this long document but...

The wording for Capital is:


'Your capital includes savings and investments held by yourself in any form (for example, bank and building society accounts, investment trusts, and shares) from any source (for example, inheritance, redundancy payments, and irregular payments from a charitable or voluntary source). It will normally also include the net sale value of land and housing that you do not occupy, after deducting 10% for expenses of sale. HB Reg 44, HB(SPC) 44; CTB Reg 34,CTB(SPC) Reg 34]

If you have a partner, capital belonging to your partner is treated as yours for the purposes of HB/CTB.'

I hope this helps you a little.

Now to find your Citizen's Advice Bureau you can use this site:

In the final analysis they will be able to tell you for sure if your legacy - which is less than £6,000 - is exempted from declaration.

Please feel free to ask further queries on this matter and if we can help, we will.

kind regards


Chair IIH UK
Posts by members, moderators and admins are not considered medical advice and no guarantee is made against accuracy. Please see your doctor before taking advice found on the internet.

Offline Angeleyes

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Re: Do I have to declare a small inheritance?
« Reply #2 on: September 22, 2012, 02:31:55 AM »
Many thanks David. I will certainly investigate all the options you presented.

Kind Regards...