Hi

Does anyone know if a person on benefits comes into money from an inheritance, say £80,000 how long is it protected if it is to be used to purchase a property before it will affect their benfits and stop benefit recipt and does it have to be held by a solicitor?

Thanks

If we're talking about a "straightforward" (by which I mean the claimant now has £80k sitting in their bank account and is at liberty to use the funds as they desire) then it isn't protected - or, properly speaking, disregarded - at all. Only at the point of purchase can the capital value of the home be ignored - including in some circumstances where actual occupation hasn't yet taken place. And this isn't affected by whether or not a solicitor is holding the funds.

If, however, the inheritance is in some form of trust - eg "I leave to my son ***** the sum of £80k for the purchase of a home for himself. This sum is to be held and administered by my solicitor, Mr X, so as to ensure this purpose is met and a suitable property purchased." then the funds should be disregarded as a trust whilst held by the solicitor or administrator of the estate.