Does inheritance affect tax credits UK?

[Guest]

I'm on tax credits and my children are getting a fair sized inheritance soon off grandparents will this effect my tax credits?

[Lyndsay]

No tax credits only used earned income for assesment purpose.

[Kerri]

Everyone on tax credits is been moved onto UC. Sure they need to know about all savings.

[Jade]

If the money is going directly to the children, then it has nothing to do with your finances so it shouldn't affect it x

[Catherine]

Unless you are directly inheriting I don't see how it would affect you. It's your children's money not yours.

[Joanna]

If in a Trust account and you can't access it should be fine.

[Paula]

It shouldn't affect your tax credits.

But by the end of 2024 everyone will be on universal credit including you and I've heard children's savings are taken into account as if they are your own and will affect entitlement.

Would you also like to explore: I get child tax credits for both kids at the moment but will I get it for my third child too?

[Anne]

Declare it anyway, you'll soon know if it affects your tax credits.

[Nicky]

My husband got a cat accident payout and hasn't effected it they said only declare if interest was over 300 for the year which it wasn't we only claim child tax credits as Mt husband works.

You can check also: I've had my letter with a deadline to switch from working tax credits & tax credits to Universal credit

[Danielle]

I presume its going savings account for them when they turn 18? So no shouldn’t effect your finances.

[Clarabella]

No and even if it was yours, unless you were earning over the interest or asset threshold it wouldn’t matter.

I was entitled to tax credits a few years ago (I did not claim them) and I owned two properties a had fifty grand in the bank.

It is flawed however UC is the opposite end of the spectrum.