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    • Proxy89
    • By Proxy89 7th Sep 17, 8:23 PM
    • 11Posts
    • 2Thanks
    Proxy89
    Benefits and Inheritance
    • #1
    • 7th Sep 17, 8:23 PM
    Benefits and Inheritance 7th Sep 17 at 8:23 PM
    Asking on behalf of Father-in-law.

    Currently awaiting £100,000 in inheritance.

    I have done some reading on the topic of inheritance and benefits.

    It is from my understanding that once he receives this money his benefits will stop and rightfully so. I also know that one cannot reduce their capital substantially just to go back to benefits (buying extravagant cars and going on silly holidays).

    My qualm with the situation is I cannot see how he can use this money to benefit his life substantially. It can only be used to pay for the lost benefits until his money eventually expires.

    I don’t want to give the impression that he is a tired bum feigning a disability. His illness truly holds him back in achieving the things he wants in life and has done so for the past 15 years. He is aware of his limitations and is always angry with himself because of his disability. In short he is ashamed of himself.

    This money will be the only money he will receive until he eventually sees the dirt and I suppose I have a hard time understanding the limitations on the inheritance and how often and how much can be used to improve his life.

    As an example, he droves an old 2001 Volvo and has done for years. He was eligible to get a disability car but used this car instead because he doesn’t want to feel ‘disabled’ and I think kudos to him for not accepting certain benefits just because they’re available to him.

    He wants to buy a second hand Toyota that fits his needs more. Something that is automatic for example. Would this be seen as lowering his capital? - How can we know what he can or cannot spend his money on?

    Any thoughts appreciated.
Page 1
    • TELLIT01
    • By TELLIT01 7th Sep 17, 8:37 PM
    • 3,874 Posts
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    TELLIT01
    • #2
    • 7th Sep 17, 8:37 PM
    • #2
    • 7th Sep 17, 8:37 PM
    With an inheritance of 100k it's going to be a long time before he can claim benefits again, so I wouldn't worry unduly about buying a new car etc. You already know that extravagant spend would have an effect as and when the money is gone and he needs to return to benefits.
    Does your F-i-L own his own house or rent?
    It's not true to say that he can only use the money to replace benefits and not to improve his life. Average earnings are said to be £28k per annum, so spending at a say £15k to £20k should not be viewed as deprivation. Clearly, if he can live a reasonable life on less than that it would sensible to do so.
    100k seems like a massive amount of money, but even if total living costs were kept to £1k per month the money would be gone in little over 8 years.
    Before anybody starts screaming about excessive spending at £1k per month, average rent in our area is between 500 and 600 per month. That would leave only 100 per week for all other expenses.
    • Proxy89
    • By Proxy89 7th Sep 17, 9:03 PM
    • 11 Posts
    • 2 Thanks
    Proxy89
    • #3
    • 7th Sep 17, 9:03 PM
    • #3
    • 7th Sep 17, 9:03 PM
    He is in housing association claiming housing benefit.
    • tomtom256
    • By tomtom256 7th Sep 17, 9:43 PM
    • 857 Posts
    • 1,584 Thanks
    tomtom256
    • #4
    • 7th Sep 17, 9:43 PM
    • #4
    • 7th Sep 17, 9:43 PM
    From the sound of it he is on DLA/PIP, this won't be affected as it's not means tested.

    Only housing benefit and any other means tested benefit will be affected.

    Unless he is buying a £90k car then any car he buys won't have an impact in respect of deprivation of capital.

    £16k is the cut off threshold for means tested benefit.
    • Housing Benefit Officer
    • By Housing Benefit Officer 8th Sep 17, 5:44 AM
    • 2,358 Posts
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    Housing Benefit Officer
    • #5
    • 8th Sep 17, 5:44 AM
    • #5
    • 8th Sep 17, 5:44 AM
    To calculate what his capital should reduce by we would minus his weekly rent his full council tax and whatever means tested benefits he would lose. Anything more we would assume he still has the capital unless the expenditure is reasonable.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • TELLIT01
    • By TELLIT01 8th Sep 17, 8:07 AM
    • 3,874 Posts
    • 3,945 Thanks
    TELLIT01
    • #6
    • 8th Sep 17, 8:07 AM
    • #6
    • 8th Sep 17, 8:07 AM
    To calculate what his capital should reduce by we would minus his weekly rent his full council tax and whatever means tested benefits he would lose. Anything more we would assume he still has the capital unless the expenditure is reasonable.
    Originally posted by Housing Benefit Officer
    HBO, I would assume a break in claim of at least 5 years so would deprivation still be examined after that period?
    • xylophone
    • By xylophone 8th Sep 17, 12:02 PM
    • 22,881 Posts
    • 13,244 Thanks
    xylophone
    • #7
    • 8th Sep 17, 12:02 PM
    • #7
    • 8th Sep 17, 12:02 PM
    From the sound of it he is on DLA/PIP, this won't be affected as it's not means tested.

    Only housing benefit and any other means tested benefit will be affected.

    http://forums.moneysavingexpert.com/showthread.php?p=73094193#post73094193

    This gentleman is on benefits and disability allowance due to illness and currently living in a housing association property which of course is paid for via housing benefit.
    • BorisThomson
    • By BorisThomson 8th Sep 17, 2:30 PM
    • 322 Posts
    • 461 Thanks
    BorisThomson
    • #8
    • 8th Sep 17, 2:30 PM
    • #8
    • 8th Sep 17, 2:30 PM
    He was eligible to get a disability car but used this car instead because he doesn’t want to feel ‘disabled’ and I think kudos to him for not accepting certain benefits just because they’re available to him.
    He'll be receiving a payment of £58 a week instead of the car. If he doesn't want this payment he can return it to the DWP.
    • teddysmum
    • By teddysmum 8th Sep 17, 2:48 PM
    • 8,241 Posts
    • 4,899 Thanks
    teddysmum
    • #9
    • 8th Sep 17, 2:48 PM
    • #9
    • 8th Sep 17, 2:48 PM

    As an example, he droves an old 2001 Volvo and has done for years. He was eligible to get a disability car but used this car instead because he doesn’t want to feel ‘disabled’ and I think kudos to him for not accepting certain benefits just because they’re available to him.
    Originally posted by Proxy89


    Other people choose not to have a Motability car, for their own reasons (eg some find it more economical to keep the money), but it's not a noble gesture.


    The benefit is a regular payment to help with travelling about ( I assume he has this, so loses nothing), but if you get it, you have the option of keeping it or using it with Motability (not a government body but a business with a highly paid boss) to purchase the hire of a car with servicing and insurance included.
    • WillowCat
    • By WillowCat 9th Sep 17, 11:10 PM
    • 687 Posts
    • 774 Thanks
    WillowCat
    Does he rent or own his own property?

    If he rents, has he looked into buying a place for himself (if you are in a cheap part of the country) or looking into shared ownership properties?

    If he spent the majority of the inheritance on a property that he then lives in then this isn't considered deprivation of capital. If he moves into shared ownership then the rental portion can still be paid by housing benefit.

    Depending on what his current position is this could make a difference to his quality of life.
    • xylophone
    • By xylophone 10th Sep 17, 12:05 AM
    • 22,881 Posts
    • 13,244 Thanks
    xylophone
    If he rents, has he looked into buying a place for himself (if you are in a cheap part of the country) or looking into shared ownership properties?
    This was discussed in the thread linked above.
    • sevenhills
    • By sevenhills 10th Sep 17, 1:45 AM
    • 498 Posts
    • 192 Thanks
    sevenhills
    Currently awaiting £100,000 in inheritance.

    I don’t want to give the impression that he is a tired bum feigning a disability. His illness truly holds him back in achieving the things he wants in life and has done so for the past 15 years. He is aware of his limitations and is always angry with himself because of his disability. In short he is ashamed of himself.

    As an example, he droves an old 2001 Volvo and has done for years. He was eligible to get a disability car but used this car instead because he doesn’t want to feel ‘disabled’ and I think kudos to him for not accepting certain benefits just because they’re available to him.

    Any thoughts appreciated.
    Originally posted by Proxy89
    If he is getting £100,000 and he can drive, the world is his oyster.

    He could drive a taxi/bus/van; just like the rest of us.

    If he has £100,000 he could buy his own minibus/van and be self employed.
    Work 20 hours or 60 hours.

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